US INFRA SVCS Buyer, LLC v. JDB Capital Partners, LLC
CourtCourt of Chancery of Delaware
Date FiledNovember 2, 2026
Docket2024-0097-LWW
StatusPublished
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Full Opinion
COURT OF CHANCERY
OF THE
STATE OF DELAWARE
LORI W. WILL LEONARD L. WILLIAMS JUSTICE CENTER
VICE CHANCELLOR 500 N. KING STREET, SUITE 11400
WILMINGTON, DELAWARE 19801-3734
November 2, 2026
Peter H. Kyle, Esquire A. Thompson Bayliss, Esquire
Courtney Kurz, Esquire Florentina Field, Esquire
DLA Piper LLP (US) Elizabeth Wang, Esquire
1201 North Market Street Benuel W. Stoltzfus, Esquire
Suite 2100 Madison Barnes, Esquire
Wilmington, Delaware 19801 Abrams & Bayliss LLP
20 Montchanin Road
Susan Hannigan Cohen, Esquire Suite 200
Mari Boyle, Esquire Wilmington, Delaware 19807
Richards Layton & Finger, P.A.
920 North King Street
Wilmington, Delaware 19801
RE: US INFRA SVCS Buyer, LLC, et al. v. JDB Capital Partners, LLC, et al.
C.A. No. 2024-0097-LWW
Dear Counsel:
I have reviewed the plaintiffs’ motion for sanctions due to alleged spoliation
of evidence (the “Motion”), filed on October 16, 2026.1 With trial six weeks away,
the plaintiffs ask that I convene a pretrial hearing to impose adverse inferences.2
That request is denied. The Motion will be resolved after trial.
1
Pls.’ Mot. for Adverse Inferences Due to Spoliation of Evidence (Dkt. 351) (“Mot.”).
2
Id.
C.A. No. 2024-0097-LWW
November 2, 2026
Page 2 of 3
Over the past year, this court has seen a growing influx of motions seeking
merits-based spoliation sanctions. These motions ask the court to draw adverse
inferences or shift evidentiary burdens before hearing the evidence on the underlying
claims. Resolving such requests in advance of trial risks allowing a dispute over lost
evidence to displace adjudication of the merits on the available record.
Under Court of Chancery Rule 37(e)(2), an adverse inference requires a
finding that the party acted “recklessly or with the intent to deprive another party of
the information’s use in the litigation.”3 Making that state of mind assessment is
typically done after hearing the evidence at trial. Here, the plaintiffs assert that a
defendant’s trustee failed to disable cell phone auto-delete settings and to preserve
data during phone upgrades, and deleted text messages.4 I cannot resolve whether
this conduct reflects negligence, recklessness, or intentional spoliation on the
existing paper record.5
3
Ct. Ch. R. 37(e)(2); see also Beard Rsch., Inc. v. Kates, 981 A.2d 1175, 1191 (Del. Ch.
2009) (“[T]he negligent destruction of evidence does not warrant drawing an adverse
inference; rather, the drawing of an adverse inference requires as a predicate a ‘preliminary
finding of intentional or reckless destruction of evidence.’” (quoting Sears, Roebuck & Co.
v. Midcap, 893 A.2d 542, 550 (Del. 2006))).
4
Mot. ¶¶ 15, 21, 35, 41.
5
See Fortis Advisors, LLC v. Johnson & Johnson, C.A. No. 2020-0881-LWW, at 132 (Del.
Ch. June 5, 2023) (TRANSCRIPT) (explaining that the court could not “possibly make
credibility determinations” or assess the alleged spoliator’s “state of mind” pretrial).
C.A. No. 2024-0097-LWW
November 2, 2026
Page 3 of 3
The complete trial record will also allow me to evaluate any resulting
prejudice and, if appropriate, tailor a proportionate remedy.6 In a bench trial, the
court need not issue preliminary evidentiary instructions to itself. It can determine
whether an adverse inference or burden shift is warranted while deciding the merits.7
For these reasons, the Motion will be resolved in my post-trial decision. The
parties may complete their stipulated pretrial briefing. But they should plan to
present evidence concerning the alleged spoliation at trial and address the requested
relief in their post-trial briefing.
Sincerely,
Lori W. Will
Lori W. Will
Vice Chancellor
6
See Goldstein v. Denner, 310 A.3d 548, 571 (Del. Ch. 2024) (“If the motion turns on
evidentiary issues that the court will evaluate at trial, then it will make sense to defer the
motion until trial.”); see also Gener8, LLC v. Castanon, 2023 WL 6381635, at *12-17 (Del.
Ch. Sept. 29, 2023) (resolving a Rule 37(e) motion and drawing tailored adverse inferences
in post-trial opinion after evaluating witness credibility live at trial).
7
See Gener8, 2023 WL 6381635, at *16-17; Beard Rsch., 981 A.2d at 1189-90, 1194
(noting that spoliation remedies must be tailored to the degree of culpability and prejudice,
and deferring consideration of additional adverse inferences until post-trial briefing and
argument).