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In the U.S. court system, the onus of ESI discovery took on new weight on Dec. 1, 2006, when amendments to the Federal Rules of Civil Procedure (FRCP) went into effect. The new rules, which govern suits filed in federal court, specifically outline an organization's rights and obligations in e-discovery. The FRCP amendments apply to all organizations, public or private.
"With the amendments to the FRCP, the courts are saying, 'We know the technology exists to do this stuff. We want to see you take some reasonable steps to put processes and technologies together to do e-discovery. And if you don't, we're really going to hold you accountable for it,'" says Barry Murphy, principal analyst at Forrester Research.
He cites the recent case of Morgan Stanley vs. Ronald Perelman, in which Perelman charged the investment firm with duping him into believing Sunbeam -- for which Perelman was accepting stock in a buyout offer -- was financially successful. Morgan Stanley was hit with a $1.57 billion jury verdict, which hinged primarily on the company's lax e-discovery procedures. "The courts are saying that there's no plea to ignorance here. The rules are there to be followed," he says.
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Comments (2)
legal e-records By wagonhitch5@yahoo.com on May 26, 2008, 3:11 pmE-discovery reflects the natural collision of technology and legal practice. As an enterprise creates an ever-growing mountain of records, adversaries of course...
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e-discoveryBy Data Miner on March 1, 2009, 10:13 pmeventually economics will prevail. Only worry is piercing the defenses of law firms who have managed to keep discovery frozen in stone age.
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