E Discovery in Employment Investigations and Litigationmedia.straffordpub.com/products/e-discovery-in-employment... · E‐Discovery in Employment Investigations and Litigation ...

Presenting a live 90‐minute webinar with interactive Q&A

E‐Discovery in Employment E‐Discovery in Employment Investigations and LitigationPreserving, Obtaining and Protecting Electronically Stored Information

Today’s faculty features:

1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific

TUESDSAY, JANUARY 10, 2012

Today s faculty features:

Danuta Bembenista Panich, Shareholder, Ogletree Deakins, Indianapolis

Michael McGuire, Shareholder, Littler Mendelson, Minneapolis

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Title Goes HereE-Discovery in Employment Investigations and LitigationInvestigations and Litigation

A Strafford Publications WebinarJanuary 10, 2012

Presented By: Danuta B. PanichDanuta B. Panich

Ogletree Deakins Nash Smoak & Stewart, P.C.

AGENDA

Set the Stageg Pre-Litigation Planning Strategies & Policy

Development Commonly Requested ESI In Employment

Matters Meeting Preservation Challenges Making the Most of the Rule 26 Initial

Planning ConferencePlanning Conference

6

DISCOVERY IN EMPLOYMENT INVESTIGATIONS AND

LITIGATION TENDS TO BEA ONE-WAY STREETA ONE WAY STREET

7

VOLUME IS A PROBLEM

American Trial Lawyers Task Force on Discovery:Discovery:

“The discovery rules in particular areThe discovery rules in particular are impractical in that they promote full

discovery as a value above almost anything else”

8

EXPENSE IS A PROBLEM

Cartel Asset Mgt. v. Ocwen Financial Corporation,2009 WL 2242395 (D. Colo. 2009):

“The discovery process necessarily imposes burdensThe discovery process necessarily imposes burdens on the responding party”

Argument that certain discovery “would affect our profitability and ability to serve our clients” was “the

e-discovery equivalent of a claim that the ‘sky is y yfalling’”

9

SPOLIATION CLAIMS ARE A PROBLEMPROBLEM 39% of all recent ESI cases involve

spoliation claims Standards vary

Proof of deliberate, bad faith conduct (Fla.) Some evidence of intentional misconduct (Tex.) Negligence (NY)g g ( )

Victor Stanlev, Inc. v. Creative Pipe, Inc., 269 cto Sta e , c C eat e pe, c , 69F.R.D. 497 (D. Md. 2010)

10

POSSIBLE SOLUTIONS?

Rule Proposals on the HorizonRule Proposals on the Horizon

Seventh Circuit Electronic Discovery Seventh Circuit Electronic Discovery Pilot Program

11

IS “PROPORTIONALITY” THE ANSWER?ANSWER?

YesYes Victor Stanley, Inc. Rimkus Consulting Group, Inc. v.

Cammarata, 688 F. Supp. 2d 598 (S.D. Tex. 2010)

No Pippins v. KPMG LLP, 2011 WL 4701849 (S.D.

N.Y. October 7, 2011)

Orbit One Commc'ns Inc v Numerex Corp Orbit One Commc ns, Inc. v. Numerex Corp., 271 F.R.D. 429, 436 (S.D.N.Y. 2010)

12

WHAT DOES THIS MEAN?

A new industryA new industry

A diA new paradigm

13

14

HOW DOES INFORMATION MANAGEMENT HELP?MANAGEMENT HELP? Significant feature in preparing for g p p g

litigation Helps avert viable spoliation claims Helps reduce ongoing litigation costs

Defensible mechanism for eliminating unused information

Less information = lower discovery costs Streamlines identification process

15

INFORMATION MANAGEMENT HAS ADDED BENEFITSHAS ADDED BENEFITS Business needs

Necessary information is available for use Reduces costs of undisciplined storage

R l t i t Regulatory requirements FLSA & State Wage/Hour FMLA EEO OSHA/MSHA IRCA IRCA ERISA/COBRA/HIPAA

16

FEATURES NEEDED TO OPTIMIZE INFORMATIONOPTIMIZE INFORMATION MANAGEMENT

Data mapping Data mapping

Adequate infrastructure

17

FEATURES NEEDED TO OPTIMIZE INFORMATIONOPTIMIZE INFORMATION MANAGEMENT Clear “use” policies

Communication methods Equipment Data export and storage

C Comprehensive records retention program Record management procedures Record management procedures Training, review and housecleaning

Robust litigation hold policy

18

g p y

ADDED OPTIMIZATION

Consider litigation at each stepConsider litigation at each step Centralize storage Build-in preservation solutions Avoid data proliferation Maintain oversight of application development Include liaison role in IT job description Include liaison role in IT job description

Seventh Circuit Pilot Project New Jersey District Court Local Rules

Phillip M. Adams v. Dell, Inc., 2009 WL 910801 (D. Utah 2009)

19

COMMON INFORMATION REQUESTS IN EMPLOYMENTREQUESTS IN EMPLOYMENT LITIGATION

Personnel data and “files” Personnel data and files Payroll Policies and proceduresp Decisional documentation Audits, surveys and training Other claims and litigation Investigatory materials

20

MORE DIFFICULT REQUESTS

Communications Person-to-person (e-mail, instant messaging,

tweeting) Mass (web-pages, articles, webinars)Mass (web pages, articles, webinars)

Systems and information infrastructurey Hidden or alternative use data

21

TANGENTIAL INFORMATION

Document Retention Policies and Procedures Document Retention Policies and ProceduresJones v. Bremen High School Dist. 228, 2010

WL 2106640, *9 (N.D. ILL., 2010)

Wh t th C h d t d What the Company has done to preserve and collect Relevant ESIIn re eBay Seller Antitrust Litigation, 2007 WL y g

2852364 at *2 (N.D. Cal., 2007)Gibson v. Ford Motor Co., 2007 WL 41954

(N.D. Ga., 2007)Cannata v. Wyndham Worldwide Corp., 2:10-

cv-00068-PMP-LRL (D. Nev. August 10, 2011)

22

FLIP-SIDE OF THE COIN: DISCOVERY FROM PLAINTIFFSDISCOVERY FROM PLAINTIFFS

Calendars, diaries, other personal records of time worked

Personal Media Personal Media Phone/Text Logs Personal Email Account Activity Social Media ActivityMancuso v. Florida Metropolitan University Inc.,

2011 WL 310726 (S D Fla January 28 2011)2011 WL 310726 (S.D. Fla. January 28, 2011)

23

THE DUTY TO PRESERVE

From where does it come? From where does it come?

T h i it d? To whom is it owed?

Who can enforce it?

24

PRESERVATION TRIGGERS

Litigation is Commenced Litigation is Commenced

Liti ti i R bl A ti i t d Litigation is Reasonably Anticipated

25

REASONABLE ANTICIPATION

For PlaintiffsFor Plaintiffs Decision to Litigate Preparatory StepsPreparatory StepsRetaining CounselMaking a Demandg

Pension Committee of the University of Montreal Pension yPlan v. Banc of America Securities, 2010 WL 184312 (S.D.N.Y. Jan. 15, 2010)

26

REASONABLE ANTICIPATION For Defendants

Charge (Zubulake v. UBS Warburg LLC, 220 g ( g ,F.R.D. 212 (S.D.N.Y. 2003) (“Zubulake IV”))

Demand letter (Goodman v. Praxair Services, Inc 632 F S 2d 494 (D Md 2009) Major ToursInc., 632 F.Supp.2d 494 (D.Md. 2009); Major Tours, Inc. v. Colorel, 2009 WL 2413631 (D.N.J. 2009))

Internal complaint (Broccoli v. Echostar p (Communications Corporation, 229 F.R.D. 506 (D.Md. 2005))

Consensus belief (Zubulake IV) Consensus belief (Zubulake IV) Widespread litigation in industry (Phillip M.

Adams v. Dell, Inc.)

27

)

SCOPE OF PRESERVATION

Key Playersy y “Likely to have information relevant to

the events” Agents Legal Control Cooperative File Sharing

28

IMPLEMENTATION

Comprehensive PlanHaraburda v Arcelor Mittal USA Inc Haraburda v. Arcelor Mittal USA, Inc., 2011 WL 2600756 (N.D. Ind. June 28, 2011)

Phillip M Adams Phillip M. Adams

29

ESI SOURCES

Databases Other Centrally Controlled Sites The Cloud Shared Work Spaces Custodian Controlled

PCs and Laptops PCs and Laptops Portable Devices and Media Home Computersp

30

PRESERVATION NOTICES

Should it be in writing?Should it be in writing?

Pension Committee: YES!Pension Committee: YES!

J B Hi h S h l N tJones v. Bremen High School : Not Necessarily.

31

PRESERVATION NOTICES Content

Nature of claim and summary of allegations Relevant period and whether ongoing Sources and locations of data

T f i f ti ht d d fi iti f Types of information sought and definition of relevance

What recipient should do: preserve; collect; notify others

Methodology for required actions Accountability Accountability Certification

32

PRESERVATION NOTICES

MethodologyMethodology Dealing with metadata How to create .pst folders How to preserve ephemeral data Using share drives or other shared resources Remote collection Additional distribution of notices

33

PRESERVATION NOTICES

Steps after issuancep Track certifications Track compliance Regular attorney oversight Issue reminders Prioritize for collection Address replacement custodians

34

PRESERVATION Automated functions

Auto-delete Size limits Back-up

Advanced Micro Devices v. Intel Corp. (In re Intel Corp. Microprocessor Antitrust Litig.), 2008 U.S. p p g ),Dist. LEXIS 98898 (D. Del. May 9, 2008)

Treppel v. Biovail Corp., 249 F.R.D. 111 (S.D.N.Y. 2008)2008)

Pension Committee

35

PRESERVATION

Suspension of retention period Suspension of retention period expiration

System information Tangential business information Logs and audit trails

36

CAUTION: ARCHIVING DATA

Often undertaken to preserve without impacting t f ti litsystem functionality.

“if a party creates its own burden or expense by converting into an inaccessible format data that it should have reasonably foreseen would be discoverable material…then it should not be entitled to shift the costs of restoring and gsearching the data”

Orbit One Communications, Inc. v. NumerexOrbit One Communications, Inc. v. NumerexCorp., et. al., 271 F.R.D. 429, 437

(S.D.N.Y. 2010) citing to Quinby v. WESTLB AG, 245 F.R.D. 94, 104

37

(S.D.N.Y. 2006)

PREPARING FOR THE RULE 26(F) CONFERENCERULE 26(F) CONFERENCE

a.k.a.

EARLY CASE ASSESSMENT

38

FRONT LOADING

Understand Claims Identify Potentially Relevant Information Determine Sources Review Storage and Retrieval Identify Challenges & Necessary

Compromises Preservation

C ll ti Collection Production

39

At the Conference

COOPERATION IS THE KEY

40

COOPERATION

“A tt ’ l“An attorney’s zealous representation of a client is not

compromised by conducting discovery in a cooperative y p

manner.”

Seventh Circuit Pilot Project

41

TOPICS TO ADDRESS

Preservation Scopep Staging Discovery Samplingp g Search Terms Collection Methods Production Formats Claw-Back Agreements Privilege Log Protocols

42

GOOD LUCK OUT THERE!

danuta.panich@odnss.com

43

E­Discovery in Employment y p yInvestigations and Litigation

Michael J. McGuireShareholder and eDiscovery CounselShareholder and eDiscovery CounselJanuary 10, 2012

44

Part II Agendag

• Collection processing review and productionCollection, processing, review and production

– Managing cost

M i i i lit d tilit– Maximizing quality and utility

– Protecting confidential information and privilege

45

46

Processing

Review

Preservation

C ll ti

IdentificationInformation Management Production Presentation

Collection

Analysis

47

To collect, process, store, review, and produce 

What does it actually cost?, p , , , p

data from 1 PC

48

49

50

51

The Role of Cost and 

NEGOTIATING ESI PROTOCOLS

Proportionality

52

Federal Rules of Civil Procedure

• Rule 1• Rule 1

– Rules should be construed and administered to secure the “just, speedy, and inexpensive determination of every action j , p y, p yand proceeding.”

• Rule 26(g)

– * * * neither unreasonable nor unduly burdensome or expensive, considering the needs of the case, prior discovery in the case, the amount in controversy, and the importance of the issues at stake in the action.

53

Proportionality Goalp y

• Discovery budget in line with amount in controversy• Discovery budget in line with amount in controversy and issues at stake

54

P  LProcess Less

55

Don’t process everything you collectp y g y

• Focus on key players• Focus on key players

• Source limitations

• Exclude system files

• Exclude irrelevant date ranges• Exclude irrelevant date ranges

56

57

R i  LReview Less

58

Cull Before You Search

• Narrow date ranges• Narrow date ranges

– Differentiate based upon

• Custodians based upon their involvement in the events

• Sources based upon their content

59

Subject Analysisj y

• “Your mailbox is over its size • Enrollment and deadline• Your mailbox is over its size limit”

• Fantasy or “fantasy 

• Enrollment and deadline

• Benefits and election

• Outlookfootball”

• Travel

Outlook

• Migration

• Maintenance• Announcements

• “awaiting your approval”• Downtime

60

Sender Analysisy

• Administrator • PTOAdministrator• Webmaster• Bounce or Bounces• Noreply

PTO• Workflow• .gov• .edu

• Donotreply OR “do not reply”• Systems administrator• Admin

• .k12• .state• List OR lists

• “Customer service” OR customerservice

• “Out of office”• Auto reply OR “auto reply” or

• “breaking news”• “Yahoo! Alerts”• Help• Maintenance• Auto‐reply OR “auto reply” or 

(auto w/1 reply)• Travel• Expense OR “concur expense”

• Maintenance• Facebook notifications

• Expense OR  concur expense

61

Email Patterns

• Can you focus on or exclude certain email patterns:• Can you focus on or exclude certain email patterns:

– Internal only

E t l l– External only

– Common personal email accounts (hotmail, yahoo, gmail, facebook etc )facebook, etc.)

62

EVALUATE REVIEW BURDEN BEFORE AGREEING TO A SEARCH PROTOCOL

Review Smarter

63

Star*start starting started star starts startup stark starter startech stars starnes starbuck starters start_timestarved star1 starwood starbucks starr startups staring starwave starthour stare startling starbird stared

i i k d b k h i k l dstarvation starring starks startrange starpower startdate starburst starta starck starch starving starkey startledstarnet startangle starttexfig starnetsystems stardust starla stara start_date startinga starlight starwarsstartmonth startpage starke starpoints start2 starnatgas starley starkovich starsupply startle starco startexstarker starline starred startupjournal starship startegy starcoexp starlite staroffice starsupppetfee starboystarleaf starmedia stardom stargate startterm staralismy starghill starteda starve starcomglobal starcomm

li k fi h i ki l h 6starcomms starlink starfish starine starkist start_cost startrow starvpplp starchow6 starcom staresstarted_template startrust starent starling starpoint starrett startribune starz starband starhub starit starklystarnberg staro starr_peaces starsa start_memory startac startec startfor startlingly startpos starwooda starcatstarcraft starkeville starpow starsailor startc startecha startles starttint startxref starbranch starcher starchystardust1118 starer stargazer starkest starkweather starletts starmark starowicz starsnbars starsteel start1

2 3 dd l h1 h10 h2 h3start2new start3 start_up startdd startloc startmenu startng startpath1 startpath10 startpath2 startpath3startpath4 startpath5 startpath6 startpath7 startpath8 startpath9 startshousing startupnls starview star0619star808 starbuckaroo starched starcy stardust9380 starfish21112 stargal82 stargaspro stargazers stariha starkeautstarkpro starme98 starmer starnz staront starpixie101 starry starstroj start_electric start_gas startegic starthtmlstartingvolume startinq startithdrawalsend startmay startn startohio startrupr9 startrustfcu startshopping startspant t l t t dh t l t 4 t b t b ll t t kl t d t t f it t ill t h kstartuppersonnel starvox starwoodhotels star4 starbase starbullet starckle stardate starfurniture stargill starhawkstarkov starksr1 starpointssm starquest starrunner stars0729 starsail starscheduler starsearch starsmeare start_dtstart_up_project_plan startd startegies startel startfragment startnow startrek starttofinish_sched startupservicesstartupuniversity starweb starwebportal starboard starbrite starbucks120 starbucks2 starbucks468 starbucksidastarbucksstarbucks starbulletin starcite starcrh stardent staredown staremaster starentnetworks starexile starfightert fil t l t kl t kti t t l d t li ht0221 t il t t h t di h t tstarfile stargel starklee starktinter starledger starlight0221 starmail starmatch starmediahouse starner starosastarostwo starparker starpre starrenburg starrs starshaper starsiak starsight starsine start_day start_hourstart_row start_runtime_dtm start_student startahead startcomm starte startedmeet starteed starteffectivestartframe startframeworkinitiator startpru startup2 starwars05 starwars3 starwood20webpage starwoodlodging64

Star*start starting started star starts startup stark starter startech stars starnes starbuck starters start_timestarved star1 starwood starbucks starr startups staring starwave starthour stare startling starbird stared

i i k d b k h i k l dstarvation starring starks startrange starpower startdate starburst starta starck starch starving starkey startledstarnet startangle starttexfig starnetsystems stardust starla stara start_date startinga starlight starwarsstartmonth startpage starke starpoints start2 starnatgas starley starkovich starsupply startle starco startexstarker starline starred startupjournal starship startegy starcoexp starlite staroffice starsupppetfee starboystarleaf starmedia stardom stargate startterm staralismy starghill starteda starve starcomglobal starcomm

li k fi h i ki l h 6starcomms starlink starfish starine starkist start_cost startrow starvpplp starchow6 starcom staresstarted_template startrust starent starling starpoint starrett startribune starz starband starhub starit starklystarnberg staro starr_peaces starsa start_memory startac startec startfor startlingly startpos starwooda starcatstarcraft starkeville starpow starsailor startc startecha startles starttint startxref starbranch starcher starchystardust1118 starer stargazer starkest starkweather starletts starmark starowicz starsnbars starsteel start1

2 3 dd l h1 h10 h2 h3

286 Variations

87 807 Documentsstart2new start3 start_up startdd startloc startmenu startng startpath1 startpath10 startpath2 startpath3startpath4 startpath5 startpath6 startpath7 startpath8 startpath9 startshousing startupnls starview star0619star808 starbuckaroo starched starcy stardust9380 starfish21112 stargal82 stargaspro stargazers stariha starkeautstarkpro starme98 starmer starnz staront starpixie101 starry starstroj start_electric start_gas startegic starthtmlstartingvolume startinq startithdrawalsend startmay startn startohio startrupr9 startrustfcu startshopping startspant t l t t dh t l t 4 t b t b ll t t kl t d t t f it t ill t h k

87,807 Documents

7,111 for Star or Starsstartuppersonnel starvox starwoodhotels star4 starbase starbullet starckle stardate starfurniture stargill starhawkstarkov starksr1 starpointssm starquest starrunner stars0729 starsail starscheduler starsearch starsmeare start_dtstart_up_project_plan startd startegies startel startfragment startnow startrek starttofinish_sched startupservicesstartupuniversity starweb starwebportal starboard starbrite starbucks120 starbucks2 starbucks468 starbucksidastarbucksstarbucks starbulletin starcite starcrh stardent staredown staremaster starentnetworks starexile starfightert fil t l t kl t kti t t l d t li ht0221 t il t t h t di h t tstarfile stargel starklee starktinter starledger starlight0221 starmail starmatch starmediahouse starner starosastarostwo starparker starpre starrenburg starrs starshaper starsiak starsight starsine start_day start_hourstart_row start_runtime_dtm start_student startahead startcomm starte startedmeet starteed starteffectivestartframe startframeworkinitiator startpru startup2 starwars05 starwars3 starwood20webpage starwoodlodging65

Sample The Resultsp

• Calculate hits for each search term• Calculate hits for each search term

• Review a random sample of documents for terms with high hit rate

• Drop, add, or modify terms based upon joint review of sample set

– X

– X not YX not Y

– X w/5 Z

X d t (X /5 W)– X and not (X w/5 W)66

Review samples of excluded documentsp

AGenerate random sample of

Bsample of documents (B – C)  (yellow area) to d t i h thdetermine whether relevant documents will be excluded by 

C

narrowing search to set C (red area).

67

Evaluate Search Results

• By date• By date

• By location

• By source

• By custodian• By custodian

• Look for patterns that may be clues to relevancy or identify culling opportunities

68

Count of Search Hits by Term by Custodian

69

“Raptor” by MonthRaptor  by Month

70

“Raptor”A P f All IAs Percentage of All Items

71

“Confidential” by Monthy

72

ConfidentialP f All Ias Percentage of All Items

73

EMAIL THREADING, CONCEPTUAL SEARCH, CLUSTERING, AND

“New” Search

CATEGORIZATION, PREDICTIVE TAGGING

74

75

76

77

78

Technology Assisted Reviewgy

• Maura R Grossman & Gordon V Cormack• Maura R. Grossman & Gordon V. Cormack, Technology‐Assisted Review in E‐Discovery Can Be More Effective and More Efficient Than Exhaustive ff ffManual Review, XVII RICH. J.L. & TECH. 11 (2011), http://jolt.richmond.edu/v17i3/article11.pdf.

79

Judge PeckJ g

• Perhaps they are looking for an opinion concluding• Perhaps they are looking for an opinion concluding that: “It is the opinion of this court that the use of predictive coding is a proper and acceptable means of p g p p pconducting searches under the Federal Rules of Civil Procedure, and furthermore that the software provided for this purpose by [insert name of your favorite vendor] is the software of choice in this court ” If so it will be a long waitcourt.   If so, it will be a long wait.

80

Judge PeckJ g

• Until there is a judicial opinion approving (or even• Until there is a judicial opinion approving (or even critiquing) the use of predictive coding, counsel will just have to rely on this article as a sign of judicial j y g japproval.  In my opinion, computer‐assisted coding should be used in those cases where it will help “secure the just, speedy, and inexpensive” (Fed.R.Civ.P. 1) determination of cases in our e‐discovery world ”discovery world.

Search, Forward, Law Technology News, 10‐01‐2011

81

Protecting Against Inadvertent Disclosure

82

Privilege Screeng

• Search for names of• Search for names of

– Internal legal department staff

N f t id l– Names of outside counsel

– Names of law firms

– Law firm domain names (e.g. , littler.com)

• Review email domains

– Any email domain with “law” as a part of the domain

– Your own law firm domain83

Search Terms

• Sample terms• Sample terms – attorn* OR atty OR counsel OR counselor OR lawyer OR legal OR privil* OR acp OR awp OR wp OR litigat* OR suit OR lawsuit OR law OR laws OR deposition OR subpoena OR deponent

• Sample phrasesSample phrases– attorn* w/5 client*– “work product”– prepar* w/4 litigat*– (advise or advised or advice) w/2 (counsel or attorn* or etc.)

84

Leverage your tool’s featuresg y

• Markup Sets• Markup Sets

– Use default “markup sets” or word highlighting to hi hli ht k d ti l i il dhighlight key words or presumptively privileged terms

• Bulk tagging 

– Bulk tag presumptively privileged documents and work the tagging into your pre‐production checklists

85

Pre‐production screeningp g

• Review for tagging inconsistencies• Review for tagging inconsistencies

– No documents tagged for production should be t d f i il l th l d t dtagged for privilege unless they are also redacted

– No documents should be produced unless their privilege status is checked as well

– Ensure extracted text field is regenerated for any redacted documents

86

Mi h l M G iMichael McGuireShareholder and eDiscovery Counsel

Littler Mendelson P CLittler Mendelson, P.C.612‐313‐7612

mmcguire@littler.com

87