A company is sued for an allegedly defective product, and the plaintiff, as part of a routine discovery request, asks for any or all documents relevant to her case.
The plaintiff’s broad request could require the company’s lawyers to sift through millions of documents on laptops, backup tapes and servers to make sure no privileged data is released.
Scenarios like that are creating headaches - and huge legal bills - for corporations and other defendants, says the newly elected president of a national defense lawyers group, which is pushing for a rewrite of electronic discovery rules.
In the last decade, with the advent of everybody having e-mail and everybody having computers, the amount of data that’s sitting in our clients’ offices on computers - and frankly, in law firms, small businesses and government offices - is enormous, said Columbia, S.C., attorney David E. Dukes.
The managing partner of Nelson Mullins Riley & Scarborough, Dukes was recently elected to a one-year term as president of the Chicago- based Defense Research Institute, a 22,000-member association composed of lawyers, corporations and insurance companies involved in civil litigation defense.
Dukes said he would advocate for e-discovery reform during his term in office.
At a January 2005 public hearing in San Francisco on proposed rules amendments, Dukes described a real-world example.
In a recent case, one of my clients searched between 400 [million] and 600 million electronic documents, he said. That search led to 8 million electronic documents that were deemed to be potentially responsive.
[F]rankly, my law firm is well compensated for doing electronic discovery, Dukes testified. But I have flown here across the country at my firm’s expense because electronic discovery is broke as we know it, and litigants are entitled to more predictability and more consistency in dealing with these electronic discovery issues.
The goal is to balance discoverability against burden and expense, Dukes said.
The existing rules were fine for that on paper discovery, but they didn’t anticipate a lot of these electronic issues, he said.
Now, procedure rules on e-discovery are often outdated, Dukes said, forcing judges to decide the issue on a case-by-case basis, leading to inconsistencies and a patchwork of local rules.
There’s been a lot of confusion about what you have to produce and in what format you have to produce it, he said. If you’re a company that’s getting sued in multiple states, it’s absolutely costing a fortune to try and comply with that.
Dukes has served on DRI’s board of directors since 2002. He also served as chairman of the organization’s Drug and Device Law Committee from 1999-2001 and as South Carolina state chairman from 1993-1997.
DRI is one of many bar groups seeking revisions in electronic discovery rules at the federal level. A recently released survey of corporate counsel found that e-discovery topped the list of new litigation-related burdens for the very largest companies.
But change appears to be on the horizon. In September, the Judicial Conference of the United States, the policy-making arm of the courts, approved a package of proposed federal rule amendments that addressed electronic discovery.
Those must also be approved by the U.S. Supreme Court. The amendments could become effective on Dec. 1, 2006, if Congress does not disapprove them.
According to a report submitted to the Judicial Conference, the current discovery rules, last amended in 1970, provide inadequate guidance to litigants, judges, and lawyers in determining discovery rights and obligations in particular cases.
Without national rules adequate to address the issues raised by electronic discovery, a patchwork of rules and requirements is likely to develop, the report stated. While such inconsistencies are particularly confusing and debilitating to large public and private organizations, the uncertainty, expense, delays, and burdens of such discovery also affect small organizations and even individual litigants.
Under the proposal ultimately adopted by the conference, Rule 16 would require parties to discuss electronic discovery issues during pretrial conferences.
The idea is to get them on the same page at the beginning, Dukes said.
A proposed amendment to Rule 26 would divide electronic information into two categories: that which is reasonably accessible - such as data on the office hard drive or personal laptop - and items that are not reasonably accessible.
Under the amendment, a party need not produce electronically stored information that is not reasonably accessible because of undue burden or cost, the report to the Judicial Conference stated. While the features that may make it burdensome or costly to access electronically stored information vary from system to system and with the progress of electronic storage systems over time, examples under current technology include deleted information, information kept on some backup-tape systems for disaster recovery purposes, and legacy data remaining from systems no longer in use.