The Dangers of Electronic Discovery: Lessons From Morgan Stanley

The Morgan Stanley case is the most recent example of the perils that corporate defendants face in the era of electronic discovery. Electronic evidence, and especially e-mail, now plays a starring role in litigation and investigations involving large corporations, particularly in areas such as employment discrimination, fraud and corporate mismanagement. Judges are increasingly familiar with electronic discovery, and are increasingly willing to impose heavy sanctions on corporations who do not comply with electronic discovery requests. As the Morgan Stanley case shows, the consequences of these sanctions can be dire. Therefore, it is important that companies take heed of the lessons of the Morgan Stanley case, and ensure that they have in place a comprehensive and effective system to recover and produce electronically stored documents.

27 minute readJune 27, 2005 at 09:19 AM
By
John R. Bielema, Jr.
Michael P. Carey
The Dangers of Electronic Discovery: Lessons From Morgan Stanley

As has been widely publicized, on May 16 a Florida state court jury awarded $604.3 million in compensatory damages and later an additional $850 million in punitive damages to Coleman Holdings,

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