Under the statute, the court found that its power to impose monetary sanctions against a party is not unbridled and cannot be used to evade limitations established by other controlling sections of the Civil Discovery Act. The justices replied that sanctions cannot be pursued solely for punishment, but to secure a fair trial and they must always impose “the least severe sanction” necessary to address the misconduct.
PwC’s $2.5M Sanction Against LA : Impact of the Ruling
This decision delineates California’s sanction law, specifically in the discovery and monetary sanctions context which signals to trial courts their expansive power to award monies damages for rampant abuse of discovery requests. L.A. will once again be on the hook for its purported improprieties during utility billing litigation, with PwC’s $2.5M punishment set to return in full force
Statement from PwC
PwC was represented by Julian W. Poon of Gibson Dunn & Crutcher, who called the ruling a “total vindication” and said his argument for summary judgment under First Amendment law had been validated. The city says more than two dozen people have now been indicted on federal charges and several officials, including LADWP staff, have pleaded or been found guilty of misconduct in connection with the billing system.
