Hyundai Sanctioned For 'Shocking' Fraud Suit Spoliation

By Dorothy Atkins (July 22, 2021, 10:14 PM EDT) -- A Florida magistrate judge hit Hyundai Motor America Corp. with spoliation sanctions Thursday for failing to preserve hundreds of engines that would've been crucial evidence in the automaker's fraud suit accusing dealerships of deliberately damaging engines to collect on warranty payments, calling the company's spoliation "frankly shocking."

In a 31-page order granting sanctions in part, U.S. Magistrate Judge William Matthewman found that the automaker's failure to preserve engines that could be key to the defense constituted bad faith and caused "substantial prejudice" to the dealerships, and therefore an adverse inference instruction against Hyundai is warranted.

The judge noted that the engines...

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