Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Cutting the Cost Of e-Discovery

By Thomas Barnett

“Save everything!” That's the new corporate mantra in response to tougher regulatory requirements and the growing importance of electronic data discovery in litigation. But is “Save Everything!” the right response? CEOs and CFOs may think they'll sleep better knowing that every bit and byte is being saved ' but wait until the bills come in! That'll be an eye-opener!

So, let's take a look at how we can cut those costs down to size, while still saving everything that needs to be saved. For starters, here are four key steps for taking control over the cost of preserving and processing electronic data for litigation.

  • Weed out the trash. There may be a vast amount of e-data in the company's backup system, but most of it is unnecessary or redundant. A thoughtful approach can relegate backup data to its intended purpose, disaster recovery, not ad hoc data preservation and retention. For existing backup sets where no alternative source exists for data related to a specific litigation, analysis, sampling and testing, can weed out most, if not all, of that unwanted data, with the company paying only to process what's potentially relevant. In a large case, excluding irrelevant and redundant data can result in millions of dollars in savings.
  • Adopt smarter data recovery methods. Companies are storing vast amounts of data ' 100 or more gigabytes of data on a single hard drive, the equivalent of millions and millions of pages of printed data! But just as data storage is getting cheaper and easier, so is data recovery. For example, you can now extract data from a backup tape without going through the time consuming and costly process of recreating the exact environment or system from which it was backed up. What's more, the discovery process keeps improving. The newest search tools and techniques enable legal teams to cull out irrelevant data quickly, leaving more time for in-depth review of data that is pertinent to the case. Cost savings are significant because there is less need to pay high-priced reviewers to waste hours and hours looking at irrelevant or duplicative data.
  • Tailor the method to the case. Some vendors tell corporate counsel that there is only one right way to process e-data (and it costs a lot!). The truth is that companies can adapt their methods to the value, size and timeline of the case, the type of data, and most importantly the size of a reasonable discovery budget. Tailoring the method to the case may require calling upon expert advice, but the savings gained by eliminating unnecessary processing and attorney review time make the investment well worthwhile.
  • Do what is reasonable. Too many companies accept as valid the claim that the cost of electronic discovery should be based simply on the amount of data and the cost of processing that data. In fact, according to basic discovery principles, such as those found in the Federal Rules of Civil Procedure, a party is obligated to do what is “reasonable” for the case, not everything “possible.” Many litigants and electronic discovery vendors approach the problem as a question of “how much will it cost to process my data?” Under the rules and the case law, a more appropriate question would be, “Based on the value of the case and the deadlines, what is a reasonable budget and approach for electronic discovery?”

Why Preserve Electronic Data?

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.