1. W W W. D I N S L A W. C O M E-Discovery and Document Retention Patrick W. Michael, Esq. Dinsmore & Shohl LLP 101 South Fifth Street Louisville, KY 40202 (502)581-8022 patrick.michael@dinslaw.com September 25, 2009

2. © 2009 Dinsmore & Shohl LLP 2 Records Management Records Management Identification Preservation Collection Processing Review Analysis Production Presentation Document Retention & Electronic Discovery Model Document Retention Litigation Discovery Process Trial

3. © 2009 Dinsmore & Shohl LLP 3 Electronic Document Retention I Should Just Keep Everything, Right?

4. © 2009 Dinsmore & Shohl LLP 4 Benefits of a Comprehensive DRP How we create & store information – 93% of all business documents created electronically – Only 30% printed to paper

5. © 2009 Dinsmore & Shohl LLP 5 Benefits of a Comprehensive DRP More efficient information management – Streamline storage costs – Spend less time and money managing data – Greater ease in finding important info

6. © 2009 Dinsmore & Shohl LLP 6 Benefits of a Comprehensive DRP Streamline response to litigation or investigations – Avoid settling defensible cases merely because of ESI problems

7. © 2009 Dinsmore & Shohl LLP 7 Creation & Implementation of DRP

8. © 2009 Dinsmore & Shohl LLP 8 Records Management Records Management Identification Preservation Collection Processing Review Analysis Production Presentation Electronic Discovery Model Document Retention

9. © 2009 Dinsmore & Shohl LLP 9 Creating the Data Map 1. Identification  Where is it located?  What do we have? 2. Preservation  What do we have to keep? 3. Collection  Where do we store it?

10. © 2009 Dinsmore & Shohl LLP 10 Identification – Where is it Located? – Hardware & software  Locations  Legacy systems – People working from home – PDA’s & Cell Phones

11. © 2009 Dinsmore & Shohl LLP 11 Identification – What Do We Have? – Identify all sources of data – Structured Data  Accounting & Financial  Data Base  Industry-based systems

12. © 2009 Dinsmore & Shohl LLP 12 Identification – What Do We Have? – Semi-Structured Data n E-Mail – Unstructured Data n User created documents – Word – Excel – PowerPoint

13. © 2009 Dinsmore & Shohl LLP 13 Identification – What Do We Have? – Unstructured Data – Divide information  Legal  Business  Everything Else

14. © 2009 Dinsmore & Shohl LLP 14 Preservation – What Do We Have To Keep? Legal – Tax Records: 7 yrs. – Audit Records: 7 yrs. – Employment Records: statutory requirement – Regulatory & Compliance: statutory requirement

15. © 2009 Dinsmore & Shohl LLP 15 Preservation – What Do We Have To Keep? Business – Contracts: end date + SOL (15 yrs.) – IP Records: life of patent + SOL – Real estate: ownership + SOL – Corporate Records: permanent – Other categories – for litigation n Design drawings n Risk management n Product Safety

16. © 2009 Dinsmore & Shohl LLP 16 Preservation – What Do We Have To Keep? Business – E-Mails & Correspondence (by category): n Contract n IP n Real Estate Everything Else – E-Mails – Correspondence

17. © 2009 Dinsmore & Shohl LLP 17 Top Ten Tips for Effective Electronic Data Management 1. Make EDM a business initiative supported by corporate leadership 2. Litigation Response Team 3. Create a document review, retention & destruction policy (Document Retention Policy – DRP) 4. Create DRP procedures for employees 5. Create employee training program

18. © 2009 Dinsmore & Shohl LLP 18 Top Ten Tips for Effective Electronic Data Management 6. Document all ways data can be transferred 7. Keep records of all hardware & software 8. Document the DRP 9. Be aware of electronic “footprints” – delete does not always mean delete 10. Cease document destruction policy at notice of lawsuit

19. © 2009 Dinsmore & Shohl LLP 19 E-Discovery Obligations

20. © 2009 Dinsmore & Shohl LLP 20 The Five Concepts: 1. Requires production of electronically stored information 2. Early focus on discovery plans 3. Early focus on privilege considerations 4. Accessibility as key factor in production 5. Specified formats for production

21. © 2009 Dinsmore & Shohl LLP 21 Litigation Hold Litigation Hold Meet & Confer Meet & Confer Planning Report Planning Report Scheduling Order Scheduling Order Initial Disclosures Initial Disclosures Production Lawsuit: The Initial Steps Reasonably Accessible Reasonably Accessible Privilege Documents Privilege Documents Response Team Outside Counsel Outside Counsel

22. © 2009 Dinsmore & Shohl LLP 22 Litigation Hold Litigation Hold Meet & Confer Meet & Confer Planning Report Planning Report Scheduling Order Scheduling Order Initial Disclosures Initial Disclosures Production Lawsuit: The Initial Steps Reasonably Accessible Reasonably Accessible Privilege Documents Privilege Documents Response Team

23. © 2009 Dinsmore & Shohl LLP 23 Litigation Hold & Preservation Obligations

24. © 2009 Dinsmore & Shohl LLP 24 LITIGATION HOLD n Litigation is reasonably anticipated n Lawyer sends “Litigation Hold” letter n Parties required to preserve relevant data – preservation of ESI that is reasonably accessible – Must suspend document destruction/retention program

25. © 2009 Dinsmore & Shohl LLP 25 Response Team n Document Retention Policy – Flow Chart procedures – Identify Technical person – Identify computer systems n Training Program

26. © 2009 Dinsmore & Shohl LLP 26 Assessment by Response Team n Identify “ key players ” – Individuals – Work groups – Departments n Identify relevant time period

27. © 2009 Dinsmore & Shohl LLP 27 Assessment by Response Team n Identify categories of information relevant to claims – E-mail – Financial data – Calendars & contacts – Database information – Word processing documents

28. © 2009 Dinsmore & Shohl LLP 28 Assessment by Response Team n Identify “systems” with relevant data – Individual PCs/Laptops – Network file servers – PDAs/cell phones/ Blackberries – Home computers – Back-up systems

29. © 2009 Dinsmore & Shohl LLP 29 Implement Response Plan n Advise key players of preservation obligation – written notice to employees likely to have documents & ESI n Describe the nature of claims n Describe the ESI or other documents for preservation

30. © 2009 Dinsmore & Shohl LLP 30 Implement Response Plan n Segregate & preserve relevant data n Issue periodic reminders n Record all decisions & rationales

31. © 2009 Dinsmore & Shohl LLP 31 Meet & Confer

32. © 2009 Dinsmore & Shohl LLP 32 Litigation Hold Litigation Hold Meet & Confer Meet & Confer Planning Report Planning Report Scheduling Order Scheduling Order Initial Disclosures Initial Disclosures Production Lawsuit: The Initial Steps Reasonably Accessible Reasonably Accessible Privilege Documents Privilege Documents Outside Counsel

33. © 2009 Dinsmore & Shohl LLP 33 MEET & CONFER n Planning Report - Timing – 90 days after the appearance of defendant OR – 120 days after service of complaint

34. © 2009 Dinsmore & Shohl LLP 34 MEET & CONFER n Planning Report - Content – identification of electronically stored information – the form for production – Agreements for claims of privilege

35. © 2009 Dinsmore & Shohl LLP 35 What does your lawyer need to know: n Respective computer systems – Current and former n Software n Types of Data

36. © 2009 Dinsmore & Shohl LLP 36 What does your lawyer need to know: n Document retention policies n Archiving procedures n Accessible and inaccessible data n Production format

37. © 2009 Dinsmore & Shohl LLP 37 What does your lawyer need to know: n Process for production n Cost allocation n Actions of your Response Team

38. © 2009 Dinsmore & Shohl LLP 38 Reasonably Accessible ESI

39. © 2009 Dinsmore & Shohl LLP 39 Litigation Hold Litigation Hold Meet & Confer Meet & Confer Planning Report Planning Report Scheduling Order Scheduling Order Initial Disclosures Initial Disclosures Production Lawsuit: The Initial Steps Reasonably Accessible Reasonably Accessible Privilege Documents Privilege Documents

40. © 2009 Dinsmore & Shohl LLP 40 Examples of reasonably accessible sources – Individual PC’s/laptops – Network file servers – Accounting data servers – E-mails servers – PDA’s/cell phones/Blackberries

41. © 2009 Dinsmore & Shohl LLP 41 Examples of Not Reasonably Accessible sources n Magnetic backup tapes n Legacy data that is unintelligible n Fragmented data after deletion

42. © 2009 Dinsmore & Shohl LLP 42 Sources that are not reasonably accessible n No requirement to produce – Must “ identify ” those sources – Identify by “ category or type ”

43. © 2009 Dinsmore & Shohl LLP 43 Cost of Production n Reasonably accessible data – Responding party bears the cost n Not reasonably accessible data – Court determines who pays the costs

44. © 2009 Dinsmore & Shohl LLP 44 Attorney-Client Privilege & Trial Materials

45. © 2009 Dinsmore & Shohl LLP 45 Litigation Hold Litigation Hold Meet & Confer Meet & Confer Planning Report Planning Report Scheduling Order Scheduling Order Initial Disclosures Initial Disclosures Production Lawsuit: The Initial Steps Reasonably Accessible Reasonably Accessible Privilege Documents Privilege Documents

46. © 2009 Dinsmore & Shohl LLP 46 Records Management Records Management Identification Preservation Collection Processing Review Analysis Production Presentation Electronic Discovery Model Review for Privilege Documents

47. © 2009 Dinsmore & Shohl LLP 47 ATTORNEY-CLIENT PRIVILEGE n Review each document before production – time consuming – costly n Result = inadvertent release of ESI

48. © 2009 Dinsmore & Shohl LLP 48 FRE 502 - Attorney-Client Privilege & Work Product Inadvertent Disclosure – not a waiver of privilege n Producing party took reasonable steps to prevent disclosure n Promptly took reasonable steps to rectify error

49. © 2009 Dinsmore & Shohl LLP 49 “Claw-Back” Agreements n Recipient must return or destroy the document – realizes it contains privileged matters or – upon request within a reasonable time

50. © 2009 Dinsmore & Shohl LLP 50 Form Of Production

51. © 2009 Dinsmore & Shohl LLP 51 Litigation Hold Litigation Hold Meet & Confer Meet & Confer Planning Report Planning Report Scheduling Order Scheduling Order Initial Disclosures Initial Disclosures Production Lawsuit: The Initial Steps Reasonably Accessible Reasonably Accessible Privilege Documents Privilege Documents

52. © 2009 Dinsmore & Shohl LLP 52 FORM OF PRODUCTION n Request may specify the form n Forms – Native File n ESI in original file format – Quasi-Native n database converted to EXCEL

53. © 2009 Dinsmore & Shohl LLP 53 n Forms – Image File n native file converted into a TIFF or PDF file – Paper

54. © 2009 Dinsmore & Shohl LLP 54 FORM OF PRODUCTION n No form is specified, you may state the form OR n Produce in the form ordinarily maintained n Only need to produce in one form

55. © 2009 Dinsmore & Shohl LLP 55 Lessons from Qualcomm 1. Do not penalize outside counsel for pursuing the evidence 2. Respond to outside counsel questions and document requests 3. Closely supervise e-discovery and document production – you are on the hook 4. Consistent coordination of e-discovery and document production 5. Document the document search

56. © 2009 Dinsmore & Shohl LLP 56 QUESTIONS? E-Discovery and Document Retention

57. W W W. D I N S L A W. C O M Patrick W. Michael, Esq. Dinsmore & Shohl LLP 101 South Fifth Street Louisville, KY 40202 (502)581-8022 patrick.michael@dinslaw.com