Thursday, December 22, 2011

Overly Onerous E-Discovery Demands Can Backfire

Federal courts have been ruling that prevailing parties are entitled to recover their discovery costs. The costs resulting from electronic discovery continue to be a critical concern for clients and their counsel. Seven years after enactment of cost-shifting provisions into the federal civil rules, substantial e-discovery costs continue to fall heavily on producing parties -- often defendants in complex litigation -- and can rise to a level that affects both pretrial and settlement strategy.

A number of recent federal district court decisions, however, offer some potential relief for parties that, in response to onerous requests, incur significant costs related to collection, review, and production of electronically stored information. These decisions award prevailing parties the costs and expenses of electronic discovery as part of the parties' bill of costs.

The Federal Rules of Civil Procedure provide that "[u]nless a federal statute, these rules, or a court order provides otherwise, costs -- other than attorney's fees -- should be allowed to the prevailing party." Fed R. Civ. P. 54(d)(1) (2006). The fees that can be recovered by a prevailing party are detailed in 28 U.S.C. 1920. That section provides, in part, that a prevailing party may be awarded costs including "[f]ees for exemplification and the costs of making copies of any materials where the copies are necessarily obtained for use in the case[.]" 28 U.S.C. 1920(4) (2008).

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Source: law.com
By: Benjamin R. Barnett and Rebecca S. Kahan

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