Battling the E-Discovery Cost Crisis with Per Document Pricing Steve Harber, DiscoverReady Mike Kinnaman, Attenex FEBRUARY 26, 2008
Battling the E-Discovery Cost Crisis with Per Document Pricing
Steve Harber, DiscoverReadyMike Kinnaman, Attenex
FEBRUARY 26, 2008
Agenda
Introduction of speakers
Present E-Discovery Landscape and Traditional Pricing Model• Law firm billing• Volume of data• Linear review
Future of E-Discovery and the Per Document Pricing Model• Reducing the Amount of Data to be Reviewed• Alternatives to the Hourly Attorney Review Rate• Dramatically Improving the Document Decisions Rate
Getting Started
Q&A
2
Presenters
Steven Harber, co-founder of DiscoverReady LLC
Steve has been active in the field of litigation support as a paralegal, attorney, application developer, services vendor and consultant since 1991.
Steve received his law degree from New York Law School and his bachelor of arts degree from Bucknell University. He is admitted to the Bar of the State of New York, as well as the U.S. District Courts, Southern and Eastern Districts of New York.
Mike Kinnaman, VP of marketing for Attenex
Mike oversees the company’s business development and marketing efforts and is an active participant in e-discovery industry groups including the Sedona Conference Vendor Council and the Electronic Data Reference Model (EDRM) project.
Mike graduated from the University of Kansas with a bachelor of science in journalism.
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Traditional E-Discovery Pricing
“The largest addressable cost in e-discovery is the cost of legal professionals who review data.”
Barry Murphy, Forrester Believe It – eDiscovery Technology Spending to Top $4.8 Billion by 2011, December 11, 2006
Review = 70% - 80% of total e-discovery costs
6
Traditional E-Discovery Pricing
Traditional billing Often no transparency or breakout of fees, which can include:
• Law firm rates (hourly)• Contract attorney rates
(hourly)• Processing fees (per GB)• Technology or conversion
fees (per GB, page, etc.)• Hosting fees (per
user/GB/month)• Project management fees
(hourly)7
E-Discovery Services…
$974,352$974,352
Acme Corp.
Traditional E-Discovery Pricing
Today: “Storing 1 GB of electronic information costs you
only $1. Having a junior attorney review it will cost you $30,000.”
- “Best Practices for E-Discovery” white paper, KM World, February 2008
Tomorrow:“EDD custodial data volumes (will) swell by three
orders of magnitude… It'll cost less to store a terabyte of data than to buy a tank of gasoline.”
- “Gazing into the EDD Crystal Ball” by Craig Ball, Law Technology News, February 4, 2008
8
Using Linear Review Tools: 30-50 documents per hour
Traditional E-Discovery Pricing
22,572 emails= = 12 reviewers1 GB
9
= 5 days
Per Document Pricing Model for Review
Old Model• Billing: hourly attorney
review rate
• Volume: collect and process everything
• Review tools: linear tools and 30-50 document decisions per hour
New Model• Billing: flat fee per
document reviewed
• Volume: strategic processing and first pass review to reduce the volume of documents
• Review tools: visual analytics tools with averages of 150 document decisions per hour
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Per Document Pricing Model for Review
Alternatives/considerations to the hourly billing model:
• Per document billing model versus per hour billing model, often incorporating:
• First pass review attorneys• Offshore attorney review
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Per Document Pricing Model for Review
Reducing the amount of data to be reviewed:
• Collection • Processing
• Often reduces data set by 75%
• First pass review• Responsive/not important• Responsive• Important• Privileged• Needs further review• Technical issue• Not responsive
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Per Document Pricing Model for Review
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Linear Review Tools30-50 document decisions per hour
Visual Analytics150+ document decisions per hour
Review documents one by oneSimple sorting (e.g. date, subject line)
Keyword searches return lists Marking, tagging and annotating
Review groups of related documentsDocuments mapped into groups based on
document similarity – review in contextExplore communication threads
Leverage document content to identify documents with similar themes
Easy to identify similar documents – even when keywords are not present…plus linear review capabilities
Using Linear Review Tools: 30-50 documents per hour
Accelerating Review
22,572 emails= = 12 reviewers1 GB
15
= 5 days
Using Advanced Review Tools: 150+ documents per hour
6 3Download case studies at http://www.attenex.com/news_and_events/white_papers_and_case_studies.aspx
Good Questions to Get Started
• What is the exact plan or process?
• Which tools will be used?
• How will quality control be managed?
• Is the review scalable?
• What will I pay on a cost per document basis?
• How much will my company’s review cost?
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Attenex Cost Per Document Calculator
http://www.attenex.com/portals/0/demo/attenex_calculator_v1.0.1.html
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Assessment
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Metric DescriptionType of case IP, Investigation, Regulatory, Second Request, etc.
Timeline How much time do you have to collect, process, review, and produce?
Total amount of ESI collected Generally measured in MB, GB or TB
Total amount of ESI eliminated from collection This refers to the amount of ESI eliminated through keyword or date filtering and/or de-duplication.
Total number of documents reviewed These are files that were left after filtering and de-duplication processes were complete.
Total number of documents produced This number should include documents produced with redactions.
Total number of documents withheld for privilege To determine a metric for percent of privileged information in your data set.
Estimate of cost for these processes Combination of vendor invoices and outside counsel hourly rates for review.
Total production cost The cost to put the ESI into the format required by the matter. This may include TIFF charges (conversion of native to image format), printing, time spent creating the production set (if producing natively) and the media used to produce the documents.
Additional Resources
Attenex/DiscoverReadyFixed Per Document Pricing CLE Symposium
• April 23, 2008• Plaza Athénée, 64th & Madison, New York, New York• For more information, please contact Michelle Nichols of
DiscoverReady at [email protected]
For a list of future Attenex Web seminars, visit:http://www.attenex.com/newsEvents/events/
Learn more about Attenex and e-discovery best practices:
Visit www.attenex.comEmail [email protected]
Call (206) 373-6565 20