Legal Hold

“You’re gonna need a bigger boat.” 

This iconic line was uttered by Chief Brody in the 1975 blockbuster film Jaws when he first saw the massive size of the shark they were trying to catch. At that moment, Brody realized they were in completely over their heads, and the boat they had was not big enough to accomplish their task. While Quint’s Orca fishing boat and his traditional methods were capable of handling previous assignments, they were not going to be enough to take on the enormous shark they were chasing. 

For better or worse, the digital environment we live in has resulted in an explosion in the number of documents and amount of information created and used by companies in their daily operations. A mid-sized company’s internal emails alone can run into the tens of thousands a day, and that is before factoring in reports, meeting minutes, studies, presentations, and other business documents. Adding in external emails and related attachments, you are looking at millions of documents a year. Because of this increased volume of data, companies dealing with potential litigation must adjust accordingly. 

Like Brody, they need a bigger boat. An effective e-discovery strategy can provide companies with a bigger boat capable of handling even the most massive litigation matters.

The emergence of ephemeral messaging applications to communicate with friends, family, and coworkers quickly, securely, and effortlessly has boomed over the past decade. In that time, users of ephemeral messaging apps have risen significantly, from millions to billions of active users! Ephemeral messaging is an integral and evolving part of both individual and company communications with advantages and challenges impacting companies and the legal industry. Companies must consider the ramifications of their employees' use of ephemeral messaging and adopt policies and procedures to best protect themselves and comply with requirements relating to litigation and regulation. Courts have already begun addressing the failure to preserve relevant ephemeral messages and have been issuing sanctions in a myriad of legal challenges. Ephemeral messaging is here to stay, and companies, courts, and attorneys must understand and adapt to evolve with this emerging technology.

In DR Distributors LLC v. 21 Century Smoking, Inc, v. CB Distributors, Inc. and Carlos Bengos, 2021 WL 185082, No. 12 CV 50324 (1/19/2021), Judge Johnston of the Northern District of Illinois, granted Plaintiff’s motion for sanctions against Defendants and their former counsel, requiring them to, among other things, pay what was expected to exceed a million dollars of attorneys’ fees and costs to Plaintiff. The Court imposed the sanctions based on its conclusion that Defendants and their former counsel: did not take reasonable steps to preserve ESI (electronically stored information); did not conduct a reasonable investigation of their ESI; did not timely disclose ESI under 26(g); and spoliated thousands of emails and chat messages. This ruling shows that we, as legal practitioners, need to be extremely congizant of our discovery obligations.

Life around the world has significantly changed in the last three months. From job losses, homeschooling, and working from home, daily life is not the same as it was in February. The world of E-Discovery has not been immune. Law firms and service providers have been forced to adapt to a quickly changing environment. From an E-Discovery perspective, the use of these remote working tools creates new data sources for preservation and collection. Diligent attorneys and clients would be wise to consider and discuss how these tools might impact the phases of E-Discovery moving forward.

There is often a lot of discussion around the processing and review of documents in a litigation, most likely because these phases end up costing the most money and taking the most time. What is often overlooked, however, is the collection process and how that phase sets the tone for the rest of discovery, including overall case strategy, knowledge gathering and cost thresholds for the case. In this blog, I lay out some best practices that can be followed to collect data in a sound manner while keeping costs reasonable and gathering all relevant information. 

This blog is part one of several regarding how to effectively and efficiently manage electronic discovery in large, complex litigation. It is in these types of matters that special attention to electronic discovery is crucial to the client’s overall success. We begin here with the earliest stages: data identification and preservation.