Wednesday, March 06, 2013

Court Awards Millions in Attorneys' Fees for Document Review Conducted by Contract Attorneys and Use of Computer-Assisted Review

Gabriel Techs., Corp. v. Qualcomm, Inc., No. 08CV1992 AJB (MDD), 2013 WL 410103 (S.D. Cal. Feb. 1, 2013)

Following entry of judgment in their favor in this patent infringement case, Defendants filed a motion seeking attorneys’ fees, including $391,928.91 for document review conducted by an outside provider of discovery services and $2,829,349.10 “attributable to computerassisted [sic], algorithm-driven document review” utilized to reduce the number of documents requiring manual review. The court found these amounts reasonable and granted the motion in part. Ultimately, the court awarded

Defendants a total of $12,465,331.01. Defendants alleged that Plaintiffs “pursued objectively baseless patent and misappropriation claims in bad faith” and thus sought attorneys’ fees “with regard to Plaintiffs’ patent claims under 35 U.S.C. § 285 and with regard to Plaintiffs’ misappropriation claims under Section 3426.4 of CUTSA” (California’s Uniform Trade Secrets Act). Sparing the details, the court concluded that an award of attorneys’ fees was appropriate under each statute and further determined that because “each one of Plaintiffs’ claims [was] covered under the ambit of one of the statutes, the Court need not apportion Defendants’ attorneys’ fees to the particular cause of action it addressed.” Accordingly, the court indicated it would determine “the reasonable amount of the award using the lodestar determination.”

In addition to the fees attributable to lead counsel, Defendants sought recovery of fees related to the document review undertaken by an outside discovery service provider (using contract attorneys) and of fees “attributable to computerassisted [sic], algorithm-driven review.” Specifically, after collecting almost 12 million records (mostly ESI), Defendants relied on an outside vendor to “employ its proprietary technology to sort the[ ] records into responsive and non-responsive documents” and then provided those documents identified as responsive to a separate discovery service provider whose attorneys manually reviewed them for “confidentiality, privilege and relevance issues.”

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Source: ediscoverylaw.com

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