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The costs associated with discovery in litigation have skyrocketed in the past decade, fueled in large part by the discovery of electronically stored information (ESI) or “eDiscovery.” Confusion over the technologies associated with eDiscovery and inadequate assessments of a corporate litigant's relevant ESI have resulted in legal counsel's inability to resolve discovery disputes, accounting for a large portion of the increased costs.
ESI discovery disputes have become protracted for one common reason: The parties do not sufficiently prepare for ESI discovery. The causes for such lack of preparation are that most litigants wait for the document requests to be served before they conduct a search for responsive information and, therefore, they are not in a position to discuss ESI discovery (scope, format, cost, etc.) with their opponents. Frankly, the technology and amount of data overwhelm both corporations and counsel alike. It need not be this way.
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The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
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