WPCU9 !߂iVK S|mSϔG|CiZ1,\4jYFJ+@y+)(~Ƙ*˸s\x)eNxZSSlmS纫yP3򵀚(bex0J[տ.CL3:E5ϓI۴1%: &:*yt'!d-2.B` ,J[}_])ӔM˽.*^W6#d"I@!qQ.ęt\mWLlx)j6fy`SDi Yj nR[ᆅTj`11XAl |4UGĆma|?Є1)َ(؍@-8M`|JǐrKȽ\F|23$wj9gH`6ļ?_Bʅb:h|JVt n#!U%N% %s 0y U0:V 1u J 0O EU 4W k z @ 0g3 0 0 0 0J 1N^ w@ B m 0UN M[|_ 1 01b 1 0= 0W 0> 0] 0'! 1! 0b" 0a# 0w# 0+$ 09$ 0% 02% 0&& 0:"' 0\' 0_' 0 @( 0kJ) 0* B*|, D3, C, D+, 0- 0. 06/ 00 0: 1 0hD1 0F1U61U>(2U*f2f2 1u2 13 13UN4 1a4a4a4a4a4444 0N4 1L5 1555 1Z6 16 1h7h7h7h7h7h7h7h7h7h7h7h7h7h7h7 0"77 0D9HP LaserJet 2200 Series PCL 60(hH  Z 6Times New Roman RegularX(ۆ$XHHXXXX7NXXdXXd7,  AZ"Arial Regular3#37=CIQYag1.a.i.(1)(a)(i)1)a) @ ª,XXHXXX d   d 9XA: ) 3^dEz030AA ) 3^^dE%30A(2ª$ ۆ!XHXXXX8XXdd8   d v+H,3|xlLevel 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5(?$25  0  .3  0@ Level 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5para numberingLevel 1Level 2Level 3Level 4Level 5(WMR$0 25  a  .3  0` (#(#(nN$0 0` (#(#25   .3  0 ` (#` (#(>$0 0` (#(#0 ` ` (#` (#25(  0  )3  0  (# (#(2$0 0` (#(#0 ` ` (#` (#0  (# (#25(  a  )3  0h!(#(#(EhCEKQW]cioAutoList21.1.1.1.1.1.1.1.F- cdDeDfghDiDjkl dU  ª+XXHXXX d  _,"X @  @  d   }XXH }MICHAELC.WORSHAM,Esq. h+`$0 1916CosnerRoadForestHill,Maryland,210502210(410)5576192Fax:(509)3571930michael@worshamlaw.com(3ª$ ۆ!XHXXXX8XXdd8   d )l  Z6Times New Roman Regular  OldeTowne P.V.Niemayer L.M.AngelettiNewbergE.E.O.C. 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(O$(EGMSY_ekqAutoList28IIIIIIIIIIIIIIII(EGMSY_ekqAutoList29IIIIIIIIIIIIIIII(UEGMSY_ekqAutoList30I.I.I.I.I.I.I.I.(eEGMSY_ekqAutoList31I.I.I.I.I.I.I.I.(EGMSY_ekqAutoList33IIIIIIIIIIIIIIII((3)$ ۆ!XHXXXX8XXdd8   `   0  (#$  0   ۆ!XHXHXXX85 XXdd8  _HX5 XXXH  R[BRUCELEVITT,etal.0 h     * p INTHEh%h%  `  #XHXXX5 #X5 XXXHPlaintiffs#XHXXX5 #X5 XXXH h     * p CIRCUITCOURT  #XHXXX5 S#X5 XXXH ` v.    h 0  0%%*0p%%#XHXXX5 #X5 XXXHFOR#XHXXX5 #X5 XXXH p%p%  ` #XHXXX5 #X5 XXXH#XHXXX5 D#X5 XXXHFAX.COM,INC.,etal.#XHXXX5 #X5 XXXH h     *0 p BALTIMORECITY p%p%  `     h      p #XHXXX5 #X5 XXXH `  #XHXXX5 #X5 XXXHDefendants#XHXXX5 .#X5 XXXH0 h     * p 0h%h%0 %%  % %  `     h      p CaseNo.24C012218#XHXXX5 z#X5 XXXH     #XHXXX5 #X5 XXXH*  * ` * *  * h *  *  * p *  *  * x * * (# *   #XHXXX5 #X5 XXXH  MEMORANDUMOFLAWINSUPPORTOF    MOTIONFORSANCTIONSFORSPOLIATIONOFEVIDENCE    ' 1   ` PlaintiffBruceD.LevittsubmitsthisMemorandumofLawinsupportoftheMotionForSanctionsagainstDefendantFax.comforSpoliationofEvidence.    INTRODUCTION  nf   ` Plaintifffiledaclassactioncomplaintandamendedcomplaintforhimselfandasarepresentativeofaclassofallsimilarlysituatedpersons.TheclaimsarebasedontheTelephoneConsumerProtectionActof1991,47U.S.C.227#XHXXX5  #X5 XXXH.TheTCPAprohibitssending unsolicited  advertisementstoa telephonefacsimilemachine(definedbelow,infra)withouttheprior ~v expressinvitationorpermissionoftherecipient.#XHXXX5 # X5 XXXH47U.S.C.227(b)(1)(C).#XHXX X5 7 #X5 XXXHTheTCPAalso  providesaprivaterightofactioninstatecourtforviolationsoftheTCPAorFCCimplementingregulationsforeitheractualdamagesor$500perviolation,trebledamagesforwillfulor#XHXXX5 #X5 XXXHknowingviolations,injunctiverelief,orbothdamagesandinjunctiverelief.47U.S.C. !# 227(b)(3). ` PlaintifffiledaMotiontoPreserveRecordswiththeComplaint,andon#XHXXX5 #X5 XXXHԀJuly27,2001 $' PlaintiffsMotionwasgrantedbyJudgeNoel.(TheOrderandMotionareattachedhereinasExh.A).ThisOrderrequiresbothDefendantstopreserve(1)allrecordsofadvertisementssentbyfacsimilesinceMay4,1997,(2)allrecordsidentifyingtherecipientsofadvertisementssentbyfaxsinceMay4,1997,and(3)tonotifyanyagentthatmayhavesentsuchadvertisementssinceMay4,1997topreservesuchrecords.L [e(3L     2e  I  .3  0 `   TheDefendantsHaveKnowinglyAllowedTheDestructionOfEvidenceRequiredto -&3 BePreserved#XHXXX5 # 0݌2/*(5` %` % Ќ   X5 XXXH ` InPlaintiffsMotiontoPreserveRecordsthetermrecordwasdefinedonpage2toinclude: 0)7  0 ` everytangiblethingfromwhichinformationcanbeobtained,perceived,reproducedorcommunicated,eitherdirectlyorwiththeaidofamachineordevice,includingwithoutlimitation,anywritten,typed,printedorgraphicmatter;anydrawing,graphorchart;anyphotograph,movieorotherfilmedorreproducedmatter;anyrecording,tape,disc,drum,cassette,computerdata,punchdata,orotherdatacomputation,howeverstoredorrecorded;andallcopiesofanyforegoingbywhatevermeansmade. ` %` %  #XHXXX5 v#X5 XXXHClearly,thefaxnumbersinFax.comsfaxnumberdatabasefallwithintheMotionsdefinitionof V N record.PlaintiffssupportingMemorandumtotheMotionpointedoutthereasonsneededtopreservethisinformation: Thesubjectrecordsaretheprimarysourceofidentifyingclassmembers.Iftherecordsaredestroyed,PlaintiffswillsufferirreparableharmandtheCourtmaynotbeabletoeffectivelysendnoticetoclassmembers.(SeePlaintiffsMemorandumInSupportOfMotionToPreserveRecords,at3).Plaintiffspecificallyraisedthespoliationissue: ...itisnotinthepublicinteresttoallowspoliationofevidencethatisthesubjectoflitigation.Id.#XHXXX5 #X5 XXXH nf  ` NinemonthslaterFax.comtoldthisCourtthat Fax.comhascompliedwiththeOrderandhascontinuedtomaintainrecordsitmaintainedpriortoJuly27,2001andhasnotdisposedof vn recordswhichmightpertaintothismatter.(Seep.2ofFax.comsApril23,2002 Memorandum  ofLawInSupportofDefendantFax.comsResponsetoPlaintiffsMotionForSanctionsAndToCompel,attachedhereinasExh.B).Despitethisassurance,theDefendantshaveblatantlyandwillfullydisobeyedthisCourtsJuly27,2001OrdertopreserverecordsbyallowingandcontinuingtoallowthedestructionofrecordsandinformationsubjecttopreservationundertheOrder.#XHXXX5 #X5 XXXH  ! Specifically,Fax.commaintainsitsfaxnumbersinadatabaseatitsCaliforniaheadquarters,anditallowsitsownemployeesandanyoneelsetodeletefaxnumbersfromthedatabasesimplybydialinganyoneofsome20differenttollfreenumbersthatFax.commaintains.(Seedepositioncitations $' infrainthenextparagraph).Byallowingemployeesandotherpersonstodirectlyaccessitsdatabase &) anddeletefaxnumbers,Fax.comisblatantlyviolatingofthisCourtsOrder.#XHXXX5 #X5 XXXH ` OnJuly17,2002PlaintiffdeposedEricWilson,theChiefTechnologyOfficerforFax.com. ")"- Mr.Wilsontestifiedthatpeoplecancallan800numberofFax.comtoreachFax.comsautomatedremovalsystemanddeleteafaxnumberfromFax.comsdatabase.(SeeJuly17,2002DepositionTranscript(T)atT.127,lines220,T.137,line20toT.139,line21,attachedasExh.C).Mr.WilsoncouldnotevenstateforcertainhowmanyfaxnumbersareintheFax.comdatabase.(SeeT.53, 2/*(5 lines120,attachedasExh.D).Assimpleorredundantasitmaysound,theactualfaxnumbersinthedatabasethemselvesaretheonlyrecordoftheexistenceofmanyofthefaxnumbers.Thesefaxnumbersinthisdatabaseareinmanycasestheonlyrecordsthatidentifytherecipientsofunsolicitedadvertisements.#XHXXX5 O#X5 XXXH    ` Fax.comsactionsinthisregardarepurposeful.ItisanintentionalschemedesignedbyFax.comtoattempttodefeatlawsuits,includingclassactions,byclaimingthatFax.comhasnorecordsofwherefaxesweresentand/orthatFax.comdoesnotknowwhatnumbersareinitsfaxnumberdatabaseatanygivenpointintime.Fax.comclaimsthatitdoesnotquantifythenumberoffaxestransmittedintoMarylandforanyparticularyear,andthat providingthetime,dateandmannerthateachMarylandnumberwasobtained,andbywhomisaninordinatelyburdensometaskwhichFax.combelievesisimpossibletocomplete.(Seep.11(top)and12(bottom)ofFax.comsMemorandumofLawInSupportofDefendantFax.comsResponsetoPlaintiffsMotionForSanctionsAndToCompelattachedhereinasExh.B).#XHXXX5 "#X5 XXXHԀ 80  ` However,Fax.comcanqueryitsdatabasetodeterminewhatFaxnumbersareinitsdatabaseforaparticularzipcode,county,orstate.(SeeT.38,line14toT.39,line16,attachedhereinasExh.D).Fax.comcanperformorrunqueriesonhowmanyfaxnumbersithasinaparticularlocation,suchasBaltimore.(SeeT.57,lines916,attachedasExh.D).Fax.comcompilesaaabYtheYblistoffaxnumbersthatitsendsfaxesto,including alistofnumbersprovidedbypersonswhohaveaffirmativelyconsentedtotheinclusion,inFax.comsdatabase,oftheirfacsimiletelephonenumbers.#XHXXX5 &#X5 XXXHԀ(SeeKevinKatzAffidavitinresponsetoFCCcitationkatkl_7l,_ԀattachedasExh.E).This #& informationcanbesupplementedandcheckedwithotherinformation,includingthefaxnumbersaddedtoFax.comsdatabasewhicharetrackedonFax.comcallsheets(alsoreferredtobyFax.comasIVRsheets).(SeeWilsonDepositionExh.10,attachedihereiniasExh.F).#XHXXX5 n)#X5 XXXHԀMr.Wilsontestifiedthatealthougheit `(X!, waspossibletowriteaquerytodeterminehowmanyfaxnumbersareinFax.comsdatabasefortheU.S.,fbutfitcsimplycdccdhadnotbeendonegyetg.(SeeT.57,line17toT.58,line4,jattajhattahchedasExh.D). ` #XHXXX5 o+#X5 XXXHHowever,Fax.comhasallowedandcontinuestoallowthefaxnumbersinitsdatabasetobe ,%2 deletedbyitsownemployeesandanyonewhocallsintoits800numbers.Mr.Wilsontestifiedthat p.h'4 itisnotpossibleforFax.comtodeterminewhenaparticularnumberwasdeletedfromFax.comsdatabase.(SeeT.218,line19toT.219,line1,attachedasExh.G).Fax.comcanrunaqueryatanytimetodeterminethefaxnumbersinanygeographicalarea,suchasMaryland.However,bydeletingfaxnumbersfromitsdatabase,Fax.comhasmadeitmoredifficulttoknowalloftheMarylandfaxnumbersthatwereinthedatabaseattimesrelevanttothissuit.ThisdeletionoffaxnumbersthwartsdiscoveryinwillfulviolationofthisCourtsJuly27,2001order.#XHXXX5 -#X5 XXXH    ` Fax.com#XHXXX5 {0#X5 XXXHmadeitsrecordsanddatamoredifficulttorecoveronpurpose.Courtshaveheld    isanunacceptablepractice.#XHXXX5 0#LX5 XXXHԀAnorganizationmayfaceliabilityifitcreatesarecordkeepingand   indexingsystemthatmakesitdifficultorcostlytolocateandproducedocumentsonrequest.Forexample,inKozlowskiv.Sears,RoebuckandCo.,73F.R.D.73(D.Mass.1976),aproductsliability   caseinvolvingflammablepajamas,theplaintiffaskedessentiallyforallcomplaintsofpriorinjuriesordeathallegedtohavebeencausedbyignitedclothing.Thedefendantrefusedtoproducesuchdocuments,statingthatthereisnopracticalwayforanyonetodeterminewhetherthereareanysuchrecords,becauseithasalongstandingpracticeofindexingclaimsalphabeticallybynameofapplicant,ratherthanbytypeofproduct. ` TheKozlowski#XHXXLX5 1#LX5 XXXHԀcourtstatedthatthedefendantmaynotexcuseitselffromcompliancewith  thediscoveryrequestbecauseitis"utilizingasystemofrecordkeepingwhichconcealsratherthandisclosesrelevantrecords,ormakesitundulydifficulttoidentifyorlocatethem,thusrenderingtheproductionofthedocumentsanexcessivelyburdensomeandcostlyexpedition.Toallowadefendantwhosebusinessgeneratesmassiverecordstofrustratediscoverybycreatinganinadequatefilingsystem,andthenclaimingundueburden,woulddefeatthepurposeofthediscoveryrules."Id.at76 X%P( (citingHickmanv.Taylor,329U.S.495,500(1947)).#XHXXLX5 4#LX5 XXXHԀSeealsoContinentalIllinoisNationalBank &* &TrustCompanyofChicagov.Caton,136F.R.D.682(D.Kan.1991);Bainev.GeneralMotors `(X!, Corp.,141F.R.D.328(M.D.Ala.1991);Faganv.DistrictofColumbia,136F.R.D.5(D.D.C. )". 1991);ControlDataCorporationSecuritiesLitigation,1988WL92085,Fed.Sec.L.Rep.93,720 h+`$0 (D.Minn.1988);Bowmanv.ConsolidatedRailCorp.,110F.R.D.525(N.D.Ind.1986);United ,%2 Statesv.ACBSales&Service,Inc.95F.R.D.316(D.Ariz.1982);Dunnv.MidwesternIndemnity, p.h'4 99F.R.D.191(S.D.Ohio1980);andWebbv.WestinghouseElectricCorp.,81F.R.D.431(E.D.Pa.  1978).#XXXLX7+8#X7XXX ` ThisCourtsJuly27,2001OrdertopreserverecordsisnottheonlyorderenjoiningFax.com   fromdestroyingrecordsanddata.InAllendaleCountyBankv.Fax.com,Inc.,CourtofCommon   Please,S.C.,Fax.comwasrestrainedandprohibited fromdestroying,deletingorotherwisespoliatinganddata,documents,information,records,databases,computerfiles,tapes,discsorothermediautilizedforinformationstoragethatcontainsanyinformationregardingwhohasreceivedadvertisingfacsimilesbroadcastbytheDefendant.(SeeAllendale#XXXX7;#X7XXXԀTemporaryRestrainingOrder   AndRuletoShowCauseofNov.28,2001,attachedhereinas_ExhViVW.WXbitX_ԀTHTUIU(thisTRObecomeaninjunction10dayslater#XXXX7K>#X7XXXԀattheshowcausehearingintheAllendalecase)).Thus,thereliefPlaintiff   seekswillpreventFax.comfromcontinuingtoviolatethenotonlythisCourtsOrder#XXXX7?#X7XXX,butthatof 0( otherstatestopreserverecordsanddataneededforongoinglitigation.f  CONCLUSION  80 #XXXX7@#"AX7XXX ` Fax.comhasthwarteddiscoveryinthiscaseandasdescribedabove,allowedthe  destructionofmaterialevidencenecessarytothiscase,inviolationofthisCourtsJuly27,2001Ordertopreservesuchrecordsandmaterial.TheCourtshouldenjoinfurtherdestructionofevidence,andsanctionsFax.comforitsmisconduct.Respectfullysubmitted,򀀀 `(X!, MichaelC.Worsham,Esq.0 h 0h%h%0%%0p%%StephenH.Ring,P.C.")"-p%p% 1916CosnerRoad0  0h%%0h%h%0%%0p%%OldeTowneProfessionalPark)".p%p% ForestHill,Maryland210500 h 0h%h%0%%0p%%316EastDiamondAvenue*#/p%p% (410)55761920  0h%%0h%h%0%%0p%%Suite102h+`$0p%p%  `     h      p Gaithersburg,Maryland20877AttorneysforPlaintiff   h     0 p (301)99048400xp%p%0 x%x%0(# % %,%2(#%(#% 0COctober7,2002#XXXX7A#^GSX7XXX#XXXXHH#S