The state’s high court faulted an intermediate appellate ruling reversing a spoliation sanction, finding the lower court “all but ignored” arguments about the relevance of the electronically stored information, much of which was lost in computer crashes.

The 4-2 majority of the Court of Appeals on Tuesday sent the matter back to Manhattan Supreme Court for a determination on whether the negligently destroyed information was relevant to plaintiff claims of breach of contract and conversion on an alter ego theory.

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