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Mar 05, 2012

Webinar: governance professionals left in the dark about e-discovery costs

Does the new model order signal a shift to more efficient and less expensive e-discovery costs in commercial litigation?

It is a common belief that e-discovery costs are high but how much do these products actually cost? For some corporate secretaries and general counsels it can be hard to figure out how much companies are investing in this new electronic format.

In a recent Corporate Secretary webinar, entitled The new e-discovery option, panelists James Maloney and David Barnard, partners at Kansas City law firm Lathrop & Gage, discussed what governance professionals should know about the new model order that was previously handed down by a Federal Circuit Court judge.  

The new model order was specifically designed by regulators to streamline the use of e-discovery among litigants and tackle its soaring costs in patent cases. While the intended purpose of this new mandate was to make the litigation process easier, it has also posed a myriad challenges.

‘Under the new model order email requests, for instance, are now limited to only five search terms,’ says Barnard. ‘However, email requests for additional custodians/search terms result in extra costs.’

According to a poll taken during this live event, an astounding 62 percent of corporate secretaries and general counsels are unaware of how much a company spends on its e-discovery; 25 percent, however, believe the cost at their own firm is less than $50,000.

‘In a case like this, it depends on the type of lawsuit companies are dealing with,’ adds Barnard. ‘Certainly, most companies have become savvy about having a good document retention program in place and e-discovery cases are going to increase in the next few years.’

When dealing with e-discovery cases, 41 percent of corporate officers feel that the biggest challenge is collecting and producing responsive documents that will be useful in litigation. Conducting relevant keyword document searches, determining which documents to retain for future e-discovery cases and limiting costs all tied at 16 percent.

‘Some best practices to help litigators overcome this hurdle include: learning where company data is stored and facilitating more cooperation between courts and counsel,’ says Maloney.

To learn more about the new model order and industry best practices, click here to listen and watch slides from Corporate Secretary’s webinar: The new e-discovery option.


Aarti Maharaj

Aarti is deputy editor at Corporate Secretary magazine