w w w. d i n s l a w. c o m e-discovery and document retention patrick w. michael, esq. dinsmore...
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E-Discovery andDocument Retention
Patrick W. Michael, Esq.Dinsmore & Shohl LLP
101 South Fifth Street
Louisville, KY 40202
(502)581-8022
September 25, 2009
© 2009 Dinsmore & Shohl LLP
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Records Management
Records Management IdentificationIdentification
PreservationPreservation
CollectionCollection
ProcessingProcessing
ReviewReview
AnalysisAnalysis
ProductionProduction PresentationPresentation
Document Retention & Electronic Discovery Model
DocumentRetention
Litigation DiscoveryProcess
Trial
© 2009 Dinsmore & Shohl LLP
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Benefits of a Comprehensive DRP
How we create & store information
– 93% of all business documents created electronically
– Only 30% printed to paper
© 2009 Dinsmore & Shohl LLP
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Benefits of a Comprehensive DRP
More efficient information management
– Streamline storage costs
– Spend less time and money managing data
– Greater ease in finding important info
© 2009 Dinsmore & Shohl LLP
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Benefits of a Comprehensive DRP
Streamline response to litigation or investigations
– Avoid settling defensible cases merely because of ESI problems
© 2009 Dinsmore & Shohl LLP
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Records Management
Records Management IdentificationIdentification
PreservationPreservation
CollectionCollection
ProcessingProcessing
ReviewReview
AnalysisAnalysis
ProductionProduction PresentationPresentation
Electronic Discovery Model
DocumentRetention
© 2009 Dinsmore & Shohl LLP
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Creating the Data Map1. Identification
Where is it located?
What do we have?
2. Preservation What do we have to keep?
3. Collection Where do we store it?
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Identification – Where is it Located?
– Hardware & software Locations
Legacy systems
– People working from home
– PDA’s & Cell Phones
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Identification – What Do We Have?
– Identify all sources of data
– Structured Data Accounting & Financial
Data Base
Industry-based systems
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Identification – What Do We Have?
– Semi-Structured Data E-Mail
– Unstructured Data User created documents
– Word
– Excel
– PowerPoint
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Identification – What Do We Have?
– Unstructured Data
– Divide information Legal
Business
Everything Else
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Preservation – What Do We Have To Keep?
Legal– Tax Records: 7 yrs.
– Audit Records: 7 yrs.
– Employment Records: statutory requirement
– Regulatory & Compliance: statutory requirement
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Preservation – What Do We Have To Keep?
Business– Contracts: end date + SOL (15 yrs.)
– IP Records: life of patent + SOL
– Real estate: ownership + SOL
– Corporate Records: permanent
– Other categories – for litigation Design drawings Risk management Product Safety
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Preservation – What Do We Have To Keep?
Business– E-Mails & Correspondence (by category):
Contract IP Real Estate
Everything Else– E-Mails
– Correspondence
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Top Ten Tips for Effective Electronic Data Management
1. Make EDM a business initiative supported by corporate leadership
2. Litigation Response Team
3. Create a document review, retention & destruction policy (Document Retention Policy – DRP)
4. Create DRP procedures for employees
5. Create employee training program
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Top Ten Tips for Effective Electronic Data Management
6. Document all ways data can be transferred
7. Keep records of all hardware & software
8. Document the DRP
9. Be aware of electronic “footprints” – delete does not always mean delete
10. Cease document destruction policy at notice of lawsuit
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The Five Concepts:
1. Requires production of electronically stored information
2. Early focus on discovery plans
3. Early focus on privilege considerations
4. Accessibility as key factor in production
5. Specified formats for production
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LitigationHold
LitigationHold
Meet &Confer
Meet &Confer
PlanningReport
PlanningReport
SchedulingOrder
SchedulingOrder
Initial Disclosures
Initial Disclosures ProductionProduction
Lawsuit: The Initial Steps
ReasonablyAccessible
ReasonablyAccessible
PrivilegeDocuments
PrivilegeDocuments
ResponseTeam
OutsideCounsel
OutsideCounsel
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LitigationHold
LitigationHold
Meet &Confer
Meet &Confer
PlanningReport
PlanningReport
SchedulingOrder
SchedulingOrder
Initial Disclosures
Initial Disclosures ProductionProduction
Lawsuit: The Initial Steps
ReasonablyAccessible
ReasonablyAccessible
PrivilegeDocuments
PrivilegeDocuments
ResponseTeam
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LITIGATION HOLD
Litigation is reasonably anticipated
Lawyer sends “Litigation Hold” letter
Parties required to preserve relevant data
– preservation of ESI that is reasonably accessible
– Must suspend document destruction/retention program
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Response Team
Document Retention Policy
– Flow Chart procedures
– Identify Technical person
– Identify computer systems
Training Program
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Assessment by Response Team
Identify “key players”
– Individuals
– Work groups
– Departments
Identify relevant time period
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Assessment by Response Team
Identify categories of information relevant to claims
– Financial data
– Calendars & contacts
– Database information
– Word processing documents
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Assessment by Response Team
Identify “systems” with relevant data
– Individual PCs/Laptops
– Network file servers
– PDAs/cell phones/ Blackberries
– Home computers
– Back-up systems
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Implement Response Plan
Advise key players of preservation obligation
– written notice to employees likely to have documents & ESI
Describe the nature of claims
Describe the ESI or other documents for preservation
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Implement Response Plan
Segregate & preserve relevant data
Issue periodic reminders
Record all decisions & rationales
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LitigationHold
LitigationHold
Meet &Confer
Meet &Confer
PlanningReport
PlanningReport
SchedulingOrder
SchedulingOrder
Initial Disclosures
Initial Disclosures ProductionProduction
Lawsuit: The Initial Steps
ReasonablyAccessible
ReasonablyAccessible
PrivilegeDocuments
PrivilegeDocuments
OutsideCounsel
© 2009 Dinsmore & Shohl LLP
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MEET & CONFER
Planning Report - Timing
– 90 days after the appearance of defendant
OR
– 120 days after service of complaint
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MEET & CONFER
Planning Report - Content
– identification of electronically stored information
– the form for production
– Agreements for claims of privilege
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What does your lawyer need to know:
Respective computer systems
– Current and former
Software
Types of Data
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What does your lawyer need to know:
Document retention policies
Archiving procedures
Accessible and inaccessible data
Production format
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What does your lawyer need to know:
Process for production
Cost allocation
Actions of your Response Team
© 2009 Dinsmore & Shohl LLP
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LitigationHold
LitigationHold
Meet &Confer
Meet &Confer
PlanningReport
PlanningReport
SchedulingOrder
SchedulingOrder
Initial Disclosures
Initial Disclosures ProductionProduction
Lawsuit: The Initial Steps
ReasonablyAccessible
ReasonablyAccessible
PrivilegeDocuments
PrivilegeDocuments
© 2009 Dinsmore & Shohl LLP
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Examples of reasonably accessible sources
– Individual PC’s/laptops
– Network file servers
– Accounting data servers
– E-mails servers
– PDA’s/cell phones/Blackberries
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Examples of Not Reasonably Accessible sources
Magnetic backup tapes
Legacy data that is unintelligible
Fragmented data after deletion
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Sources that are not reasonably accessible
No requirement to produce
– Must “identify” those sources
– Identify by “category or type”
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Cost of Production
Reasonably accessible data
– Responding party bears the cost
Not reasonably accessible data
– Court determines who pays the costs
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LitigationHold
LitigationHold
Meet &Confer
Meet &Confer
PlanningReport
PlanningReport
SchedulingOrder
SchedulingOrder
Initial Disclosures
Initial Disclosures ProductionProduction
Lawsuit: The Initial Steps
ReasonablyAccessible
ReasonablyAccessible
PrivilegeDocuments
PrivilegeDocuments
© 2009 Dinsmore & Shohl LLP
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Records Management
Records Management IdentificationIdentification
PreservationPreservation
CollectionCollection
ProcessingProcessing
ReviewReview
AnalysisAnalysis
ProductionProduction PresentationPresentation
Electronic Discovery Model
Review for Privilege Documents
© 2009 Dinsmore & Shohl LLP
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ATTORNEY-CLIENT PRIVILEGE
Review each document before production
– time consuming
– costly
Result = inadvertent release of ESI
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FRE 502 - Attorney-Client Privilege & Work Product
Inadvertent Disclosure – not a waiver of privilege
Producing party took reasonable steps to prevent disclosure
Promptly took reasonable steps to rectify error
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“Claw-Back” Agreements
Recipient must return or destroy the document
– realizes it contains privileged matters
or
– upon request within a reasonable time
© 2009 Dinsmore & Shohl LLP
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LitigationHold
LitigationHold
Meet &Confer
Meet &Confer
PlanningReport
PlanningReport
SchedulingOrder
SchedulingOrder
Initial Disclosures
Initial Disclosures ProductionProduction
Lawsuit: The Initial Steps
ReasonablyAccessible
ReasonablyAccessible
PrivilegeDocuments
PrivilegeDocuments
© 2009 Dinsmore & Shohl LLP
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FORM OF PRODUCTION
Request may specify the form
Forms
– Native File
ESI in original file format
– Quasi-Native
database converted to EXCEL
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Forms
– Image File
native file converted into a TIFF or PDF file
– Paper
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FORM OF PRODUCTION
No form is specified, you may state the form
OR
Produce in the form ordinarily maintained
Only need to produce in one form
© 2009 Dinsmore & Shohl LLP
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Lessons from Qualcomm
1. Do not penalize outside counsel for pursuing the evidence
2. Respond to outside counsel questions and document requests
3. Closely supervise e-discovery and document production – you are on the hook
4. Consistent coordination of e-discovery and document production
5. Document the document search
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Patrick W. Michael, Esq.Dinsmore & Shohl LLP101 South Fifth StreetLouisville, KY 40202
(502)[email protected]