Ordering a “company-wide” search is not enough to shield outside counsel and client from a potentially embarrassing electronic discovery sanction allocation hearing in the Southern District of New York.
In In re A & M FLORIDA PROPERTIES II, the parties disputed the terms and obligations relevant to a purchase and sale agreement for property. The plaintiff claimed the defendant failed to disclose information that would ultimately have the effect of increasing plaintiff’s purchase price. The defendant claimed that the plaintiff was fully informed of the transaction details and requested emails and other documents from plaintiff to prove plaintiff had knowledge of the details. During e-discovery, the plaintiff’s counsel made the following two costly errors that led to a potentially embarrassing sanction show down with his client:
1. Issuing a broad instruction to perform a “company-wide” search without more detailed instructions
2. Failure to communicate with key IT personnel and employees to understand the client’s retention policies and data systems
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Source: eDiscovery 2.0
By: Matthew Nelson
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