What is the difference between discovery and discovery sanctions in business litigation?
Discovery and discovery sanctions are two common terms associated with business litigation in New York. Discovery is the process during which both sides of a business lawsuit exchange evidence or information to which they are entitled to receive. After the discovery process, each side will use the information to build their case. Discovery sanctions are penalties imposed when parties fail to comply with the discovery process. These sanctions can either be monetary or non-monetary in nature. If a party fails to produce the evidence or information required during the discovery process, they may be liable for additional damages caused to the other party or a third party. For example, if one party fails to produce the evidence requested in a lawsuit, the other party or third party may request a monetary penalty to cover the costs of obtaining the documents from a third party. Penalties can also be issued for other violations during the discovery process such as destruction of documents, willful withholding of documents, or the failure to answer questions truthfully. In conclusion, the difference between discovery and discovery sanctions in business litigation in New York is that discovery is the process in which both sides of a lawsuit exchange evidence or information, while discovery sanctions are the penalties issued for failing to comply with the discovery process.
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