What is the test for applying Rule 37 sanctions diligently?

MultiRegion, United States of America

The following excerpt is from Penthouse Intern., Ltd. v. Playboy Enterprises, Inc., 663 F.2d 371 (2nd Cir. 1981):

Rule 37 sanctions must be applied diligently both "to penalize those whose conduct may be deemed to warrant such a sanction, (and) to deter those who might be tempted to such conduct in the absence of such a deterrent." National Hockey League v. Metropolitan Hockey Club, supra at 643, 96 S.Ct. at 2781.

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