Electric Insurance ESI Planning

Goldberg Segalla Goldberg Segalla LLPLLP

Electric InsuranceESI Needs Assessment

April 21, 2009

John J. Jablonski, Esq.jjablonski@goldbergsegalla.com

716.566.5469

Goldberg Segalla Goldberg Segalla LLPLLP

Overview

1. Duty2. Triage3. Plan4. Execute5. Educate6. Compliance

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1. Duty - The Digital Haystack

Documents, Books, E-mail, Word, Reports, Presentations, Backup Tapes, Intranet, Instant Messenger, Web Sites, Mail, Faxes, Cell Phones, Blackberrys, Newspapers, Court Decisions, Palm Pilots, Databases, Pagers, Voice Mail, Blogs, Discussion Boards, Paper, Extranets, Directories, Wikis, Adobe PDFs, CD-ROMs, Conferences, Temporary Internet Files, Magazines, Floppy Disks, Schedulers, Laptops, Networks Storage, Lexis, Westlaw, Web, Seminars, Hard Drives, RAM, System Log Data, ISP’s, Third Party Service Providers, PST files…

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The Broad Standard of Discovery:

–All documents “reasonably calculated to lead to the discovery of admissible evidence” per Federal Rule of Civil Procedure, Section 26(b)(1).

–Duty to preserve v. duty to produce

1. Duty - Discovery

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Companies have a duty to:

Know exactly how ESI is managedKnow how to prevent the computer system from

destroying relevant ESIImplement “Legal Holds” to prevent the destruction

of relevant ESI when litigation is initiated, eminent or expected

Meet with key players to determine existence of ESI and stress preservation, Enforce Legal Holds

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Companies have a duty to:

Expand the scope of Litigation Holds if necessaryRetrieve and produce accessible ESI in a usable

formatIdentify not reasonably accessible ESIRetrieve and produce not reasonably accessible

ESI in a usable format if required by court order (there may be some cost shifting involved)

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Failure to produce may result in severe sanctions for “spoliation.” Financial sanctions Judicial sanctions

– Adverse inference jury instruction– Issue preclusion

Jail! Intangible costs

1. Duty – Failure Costs More Than $$$

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Spoliation may result in “adverse inference” under which the finder of fact may infer that the destroyed evidence would have been favorable to the opposing side.

United Medical v. U.S., 77 Fed. Cl. 257 (U.S. Fed Claims 2007)

1. Duty - Spoliation

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2. Triage: Benchmarking

AIIM (Benchmark Surveys)ARMA (Benchmark Surveys)Huron / PSS Systems (Legal Hold Survey)Vendor Resources (ESI and RIM)

Goldberg Segalla Goldberg Segalla LLPLLPSource: AIIM 2009 IT Survey

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2. Triage: Benchmarking

Cohasset/ARMA/AIIM Records Management Survey 2007

The survey's conclusions are based on data compiled from more than 1600 respondents in 2007 and a total of more than 5500 in the survey's four prior years – 1999, 2001, 2003 and 2005.

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2. Triage: Benchmarking

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2. Triage: Benchmarking

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2. Triage: Benchmarking

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Huron Consulting Benchmark Survey – Legal Holds – 2008

2. Triage: Benchmarking

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2. Triage: Benchmarking

Huron Consulting Benchmark Survey – Legal Holds – 2008

Goldberg Segalla Goldberg Segalla LLPLLPHuron Consulting Benchmark Survey – Legal Holds – 2008

2. Triage: Benchmarking

Goldberg Segalla Goldberg Segalla LLPLLP Kahn Consulting – 2009

2. Triage: Benchmarking

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BUZZWORD

Electronically Stored Information (“ESI”)

All encompassing term formalized in the revised FRCP, ESI replaces “Data Compilations” and other various terms adopted throughout the years.

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Source: The Ingersoll Firm - 2009

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3. Plan: Discovery Capabilities

Develop needs assessment Interviews key departments Review key sample documents

– RIM policies & procedures– Other related policies & procedures– Implementation documents (notices, questionnaires, etc.)– Data Map

Develop results of needs assessment– Includes observations of status quo– Includes recommendations in order of priority

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Develop E-Discovery policyDevelop E-Discovery procedures

Electronic Discovery Resources© privileged guide Develop Legal Holds policyDevelop Legal Holds procedures

Follow 7 Steps of book authored by Messrs. Isaza and Jablonski

Emphasize process for lifting of legal holds

3. Plan: Discovery Capabilities

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Goldberg Segalla Goldberg Segalla LLPLLP

• Based on interviews (Needs Assessment)– Recommendations for cross-functional team– Review existing organization chart and structure to

arrive at recommendations– Review 7 Steps from book to address of all aspects

of legal holds by recommended team

3. Plan: Discovery Capabilities

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• Leverage e-discovery experience• Develop systematic and repeatable approach for

assessing e-discovery responses– Develop written policy– Develop written procedures– Develop user-friendly questionnaires– Develop process documents

3. Plan: Discovery Capabilities

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3. Plan: Discovery Capabilities

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• Develop systematic and repeatable approach to meet and confer– Ensure legally defensible approach– Leverage extensive experience from the trenches– Use Needs Assessment process to identify areas of

vulnerability and repeatability– Targeted preservation / discovery strategy– Reduce costs by focused approach

3. Plan: Discovery Capabilities

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• Use systematic approach for developing a map of ESI (Electronically Stored Information)

• Anticipated to Include Information in Databases, Network Shared Files, E-Mail, Intranet, Internet, SharePoint

• Help create efficient scope analysis for preservation

3. Plan: Discovery Capabilities

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• Identify locations of Relevant v. Non-Relevant Data

• Identify Data that is not reasonably accessible• Identify Custodians of Relevant Data• Prepare for Rule 26 conference• Identify 30(b)6 witnesses• Reduce Risk of spoliation or missing ESI

3. Plan: Data Map

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• Reduce cost of implementing a legal hold• Reduce costs of preservation, collection, review, and

production stages of EDRM model• Create awareness in IT• Analysis of litigation portfolio/goals for organization• Create systematic approach to discovery• Create Electronic Discovery Resources © privileged

guide to ESI preservation and disclosure

3. Plan: Data Map ROI

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3. Plan: Data Map ROI• Build a bridge between legal, records management and

IT• Educate IT• Gap identification• Reduce risk of sanctions• Eliminate preservation / discovery “fire drills” • Less disruption to IT staff and business operations• Unify message delivered across litigated matters• Reduce costs by targeted preservation / discovery

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Option 1 – Proactive Planning: Spend $$ now Work in a controlled environment Find the holes and plug them

Option 2 – Reactive Identification: Spend $$$$ later Rush, make mistakes, fix mistakes Find the holes and beg for mercy

3. Plan: Discovery Capabilities

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4. Execution

• Develop sliding scale of needs

• Address High Risk Immediately

• Roll out Proactive Approaches Over Time

• Goal to Save Money and Demonstrate ROI

• 5 Year Plan

• Education

• Compliance

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5. Education

ESI Strategy

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6. Compliance

• Reinforce• Review• Retrain• Reliable• Right• Retool

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Questions?

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John Jablonski, Esq.

Goldberg Segalla LLP665 Main Street, Suite 400

Buffalo, NY 14203(716) 566-5469 Office(716) 812-5237 Cell

jjablonski@goldbergsegalla.com