Category Archives: collection

Intelligent ESI Collection Integrated with Relativity Can Cut eDiscovery Costs by 90 Percent

By John Patzakis

One of the biggest drivers of excessive eDiscovery costs is ESI over-collection. This in turn leads to a larger amount of data entering the processing and initial review funnel. These traditional inefficient efforts are manual with numerous hand offs and a high degree of project management and consulting hours to oversee the disjointed workflow. A recent analysis by Compliance CEO Marc Zamsky, illustrated in the chart below, established that cost for collection, processing and first month hosting under a traditional preservation process can cost upwards of $12,000 per custodian:

Properly targeted preservation initiatives are permitted by the courts and can be enabled by next generation software that is able to quickly and effectively access and search these data sources in place and throughout the enterprise. The value of targeted preservation is recognized in the Committee Notes to the recent FRCP amendments, which urge the parties to reach agreement on the preservation of data and the key words, date ranges and other metadata to identify responsive materials. (Citing the Manual for Complex Litigation (MCL) (4th) §40.25(2)). And In re Genetically Modified Rice Litigation, the court noted that “[p]reservation efforts can become unduly burdensome and unreasonably costly unless those efforts are targeted to those documents reasonably likely to be relevant or lead to the discovery of relevant evidence.”

Recently we hosted a webinar with Compliance highlighting the very compelling integration of our X1 Distributed Discovery platform with Relativity. This X1/Relativity integration enables game-changing efficiencies in the eDiscovery process by accelerating speed to review, and providing an end-to-end process from identification through production. As recently stated by Relativity Chief Product Officer Chris Brown: “Our exciting new partnership with X1 highlights our continued commitment to providing a streamlined user experience from collection to production…RelativityOne users will be able to combine X1’s innovative endpoint technology with the performance of our SaaS platform, eliminating the cumbersome process of manual data hand-offs and allowing them to get to the pertinent data in their case – faster.”

The live demonstration highlighted in real time how the integration improves the enterprise eDiscovery collection and ECA process by enabling a targeted and efficient search and collection process, with immediate pre-collection visibility into custodian data. X1 Distributed Discovery significantly streamlines the eDiscovery workflow with integrated culling and deduplication, thereby eliminating the need for expensive and cumbersome electronically stored information (ESI) processing tools. That way, the ESI can be populated straight into Relativity from an X1 collection without multiple hand offs, extensive project management and inefficient data processing.

Zamsky commented that the “ability to collect directly from custodian laptops and desktops into a RelativityOne workspace without impacting custodians is a game-changer,” which will “reduce collection times from weeks to hours so that attorneys can quickly begin reviewing and analyzing ESI in RelativityOne.” In fact, Zamsky demonstrated just that by presenting a second chart showing how this streamlined approach, based upon a detailed ROI analysis, reduces eDiscovery costs by over 90 percent:

So in terms of the big picture, with this integration providing a complete platform for efficient data search, eDiscovery, and review across the enterprise, organizations will save a lot of time, save a lot of money, and be able to make faster and better decisions. When you accelerate the speed to review and eliminate over-collection and inefficient processing, you are going to have much better early insight into your data and increase efficiencies on many levels.

A recording of the X1/Relativity integration webinar can be accessed here.

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Filed under Best Practices, collection, eDiscovery, ESI, Uncategorized

Federal Judge: Custodian Self-Collection of ESI is Unethical and Violates Federal Rules of Civil Procedure

By John Patzakis

In E.E.O.C. v. M1 5100 Corp., (S.D. Fla. July 2, 2020), Federal District Judge Matthewman excoriated defense counsel for allowing the practice of unsupervised custodian ESI self-collection, declaring that the practice “greatly troubles and concerns the court.” In this EEOC age discrimination case, two employees of the defendant corporation were permitted to identify and collect their own ESI in an unsupervised manner. Despite no knowledge of the process the client undertook to gather information (which resulted in only 22 pages of documents produced), counsel signed the responses to the RFP’s in violation of FRCP Rule 26(g), which requires that the attorney have knowledge and supervision of the process utilized to collect data from their client in response to discovery requirements.Gavel and books

This notable quote from the opinion provides a very strong legal statement against the practice of ESI custodian self-collection:

“The relevant rules and case law establish that an attorney has a duty and obligation to have knowledge of, supervise, or counsel the client’s discovery search, collection, and production. It is clear to the Court that an attorney cannot abandon his professional and ethical duties imposed by the applicable rules and case law and permit an interested party or person to ‘self-collect’ discovery without any attorney advice, supervision, or knowledge of the process utilized. There is simply no responsible way that an attorney can effectively make the representations required under Rule 26(g)(1) and yet have no involvement in, or close knowledge of, the party’s search, collection and production of discovery…Abdicating completely the discovery search, collection and production to a layperson or interested client without the client’s attorney having sufficient knowledge of the process, or without the attorney providing necessary advice and assistance, does not meet an attorney’s obligation under our discovery rules and case law. Such conduct is improper and contrary to the Federal Rules of Civil Procedure.”

In his ruling, Judge Matthewman stated that he “will not permit an inadequate discovery search, collection and production of discovery, especially ESI, by any party in this case.” He gave the defendant “one last chance to comply with its discovery search, collection and production obligations.”  He then also ordered “the parties to further confer on or before July 9, 2020, to try to agree on relevant ESI sources, custodians, and search terms, as well as on a proposed ESI protocol.” The Court reserved ruling on monetary and evidentiary sanctions pending the results of Defendants second chance efforts.

A Defensible Yet Streamlined Process Is Optimal

EEOC v. M1 5100, is yet another court decision disallowing custodian self-collection of ESI and underscoring the importance of a well-designed and defensible eDiscovery collection process. At the other end of the spectrum, full disk image collection is another preservation option that, while being defensible, is very costly, burdensome and disruptive to operations. Previously in this blog, I discussed at length the numerous challenges associated with full disk imaging.

The ideal solution is a systemized, uniform and defensible process for ESI collection, which also enables targeted and intelligent data collection in support of proportionality principles. Such a capability is only attainable with the right enterprise technology. With X1 Distributed Discovery (X1DD), parties can perform targeted search and collection of the ESI of hundreds of endpoints over the internal network without disrupting operations. The search results are returned in minutes, not weeks, and thus can be highly granular and iterative, based upon multiple keywords, date ranges, file types, or other parameters. This approach typically reduces the eDiscovery collection and processing costs by at least one order of magnitude (90%), thereby bringing much needed feasibility to enterprise-wide eDiscovery collection that can save organizations millions while improving compliance by maintaining metadata, generating audit logs and establishing chain of custody.

And in line with the Judge’s guidance outlined in EEOC v. M1 5100, X1DD provides a repeatable, verifiable and documented process for the requisite defensibility. For a demonstration or briefing on X1 Distributed Discovery, please contact us.

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Filed under Best Practices, Case Law, collection, eDiscovery, ESI, Uncategorized

Lawson v. Spirit Aerosystems: Federal Court Blasts “Bloated” ESI Collection, Rendered TAR Ineffective

By John Patzakis

Technology Assisted Review (TAR), when correctly employed, can significantly reduce legal review costs with generally more accurate results than other traditional legal review processes. However, the benefits associated with TAR are often undercut by the over-collection and over-inclusion of Electronically Stored Information (ESI) into the TAR process. These challenges played out in spades in the recent decision in Lawson v. Spirit Aerosystems, where a Kansas federal judge issued a detailed ruling outlining the parties’ eDiscovery battles, use of Technology Assisted Review (TAR), and whether further TAR costs should be shifted to the Plaintiff. The ex-CEO of Spirit Aerosystems brought his suit accusing Spirit of unlawfully withholding $50 million in retirement benefits over his alleged violation of a non- compete agreement.

Lessons Learned from New Technology-Assisted Review Case Law ...

The Lawson court outlined two ways in particular how ESI over-collection can detrimentally impact TAR. First, the more data introduced into the process, the higher the cost and burden. Some practitioners believe it is necessary to over-collect and subsequently over-include ESI to allow the TAR process to sort everything out. Many service providers charge by volume, so there can be economic incentives that conflict with what is best for the end-client. In some cases, the significant cost savings realized through TAR are erased by eDiscovery costs associated with overly aggressive ESI inclusion on the front end. Per the judge in Lawson, “the TAR set was unnecessarily voluminous because it consisted of the bloated ESI collection” due to overbroad collection parameters.

The court also outlined how the TAR process is much more effective when the initial set of data has a higher richness (also referred to as “prevalence”) ratio. In other words, the higher the rate of responsive data in the initial data set, the better. It has always been understood that document culling is very important to successful, economical document review, and that includes TAR. As noted by Lawson court, “the ‘richness’ of the dataset…can also be a key driver of TAR expenses. This is because TAR is not as simple as loading the dataset and pushing a magic button to identify the relevant and responsive documents. Rather, the parties must devote the resources (usually a combination of attorneys and contract reviewers) necessary to “educate” or “train” the predictive algorithm, typically through an ongoing process…” According to the courts’ decision, the inefficiencies in the process resulted in an estimated TAR bill of $600,000 involving the review of approximately 200 GBs of data. This is far too expensive for TAR to be feasible as a standard litigation process, and the problems all started with the “bloated” ESI collection.

To be sure, the volume of ESI is growing exponentially and will only continue to do so. The costs associated with collecting, processing, reviewing, and producing documents in litigation are the source of considerable pain for litigants, including the Plaintiff in Lawson, who will, per the courts’ ruling, incur at least a substantial amount of the TAR bill under the cost-shifting order. The only way to reduce that pain to its minimum is to use all tools available in all appropriate circumstances within the bounds of reasonableness and proportionality to control the volumes of data that enter the discovery pipeline, including TAR.

Ideally, an effective and targeted collection capability can enable parties to ultimately process, host, review and produce less ESI.  This capability should enable a pre-collection early case assessment capability (ECA) to foster cooperation and proportionality in discovery by informing the parties early in the process about where relevant ESI is located and what ESI is significant to the case. And with such benefits also comes a much more improved TAR process. X1 Distributed Discovery (X1DD) uniquely fulfills this requirement with its ability to perform pre-collection early case assessment, instead of ECA after the costly, time consuming and disruptive collection phase, thereby providing a game-changing new approach to the traditional eDiscovery model.  X1DD enables enterprises to quickly and easily search across hundreds of distributed endpoints from a central location.  This allows organizations to easily perform unified complex searches across content, metadata, or both and obtain full results in minutes, enabling true pre-collection ECA with live keyword analysis and distributed processing and collection in parallel at the custodian level. To be sure, this dramatically shortens the identification/collection process by weeks if not months, curtails processing and review costs from not over-collecting data, and provides confidence to the legal team with a highly transparent, consistent and systemized process. And now we know of another key benefit of an effective collection and ECA process: much more accurate and feasible technology assisted review.

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Filed under Best Practices, Case Law, Case Study, collection, ECA, eDiscovery, Enterprise eDiscovery, ESI

Remote Collection: The Apple Pay of eDiscovery in a COVID-19 World

By: Craig Carpenter

I often continue doing things just because that’s the way I’ve always done them.  There is a level of comfort that comes from familiarity, and to be honest as I age I realize I can get more set in my ways (as my children often tell me), eschewing new ways of doing things – even if they are quicker or more efficient.  Sometimes it takes a major disruption to force change, as the eDiscovery market saw with accelerated adoption of Predictive Coding in the wake of the Great Recession.  This is true in many industries, including consumer products: witness the accelerated adoption of “contactless payment” like Apple Pay during the COVID-19 pandemic.  It has been available for years, but adopted mainly by younger generations while us old folks clung to credit cards and, in some cases, cash (gasp!).  But COVID-19 has changed this dynamic for many, myself included, as the prospect of touching a credit card machine is now unacceptable.  Whereas using Apple Pay was a ‘nice-to-have’ before COVID-19, it has become a ‘must-have’ now.  This type of resistance to change is arguably even more commonplace in the legal world, where convention and comfort often reign supreme.  How we have been conducting eDiscovery collection for years is a perfect example of clinging to outdated methods – but with the advent of COVID-19, this too is about to change for good.

Collection of digital evidence in legal proceedings was an implicit requirement under the Federal Rules of Civil Procedure (FRCP) long before it was codified explicitly in the 2006 amendments with the addition of Electronically Stored Information (ESI) under amended Rule 34(a)) as a “new” category.  I distinctly remember conducting discovery in 1998 and 1999 as a 3rd year law student and then 1st year associate for a Bay Area law firm: it was the proverbial “banker box” process, with all discovery in paper form.  In those days, even email messages and Word Perfect documents were simply printed out to be Bates stamped and reviewed in hard copy by hand.  Document review has always been tedious, but at least back then the volumes were significantly lower than they are these days.

During this timeframe, however, email and the dissemination of ever-greater volumes of electronic information it facilitated was exploding.  This, of course, meant that evidence (in the forensic context) and relevant information for eDiscovery was increasingly digital in nature.  So when discovery practitioners went looking for tools to help them preserve and collect digital information, where did they turn?  To the forensic world, of course, as the more stringent requirements and processes of criminal proceedings and evidence necessitated the development of such tools earlier than had been needed in civil discovery.  And if a tool was good enough for criminal proceedings, it should be plenty good enough for those in the civil world.  Thus, forensic tools like Guidance’s Encase® and AccessData’s FTK® which were built for law enforcement crossed over into the civil world.

However, the needs of the data collection process for civil discovery were and remain quite different from those of the criminal world:

  • On average civil discovery involves far more “custodians” (owners or stewards of information) than criminal proceedings, e.g. 5-15 custodians in civil matters vs. 1, maybe 2, in criminal
  • Whereas a typical criminal proceeding focuses on the communication media of one or occasionally a few alleged perpetrators (i.e. their cell phone, laptop, social media), civil discovery is typically significantly broader given the greater number of corporation applications and data repositories, including corporate email, file shares, ‘loose files’ (e.g. Word or Excel documents only stored locally), cloud storage repositories like Dropbox or Google Vault
  • Due to the larger number of custodians and typically broader data types to be searched, the volume of information in civil discovery is usually significantly greater than in a criminal proceeding
  • In handling criminal evidence there is a presumption that the alleged perpetrator may have tried to hide, alter or destroy evidence; absent very unusual circumstances, no such presumption exists in civil discovery
  • While confiscation of devices (laptops, desktops, cell phones, records) is the standard in criminal proceedings, the opposite is true in civil discovery. Custodians need their devices so they can do their jobs
  • Collection of evidence in criminal proceedings is handled by law enforcement (e.g. upon arrest or as part of a ‘dawn raid’ type of event), while the parties themselves conduct civil discovery (as a business process typically handled by legal or outsourced to service providers)

These differences were insignificant when data volumes were small and the data was relatively easy to get to, as was the case for many years.  And as the first technology on the market, forensic tools and vendors did a great job of building and defending their incumbency, through certifications, “court-cited workflows” and knowledge bases widely advertising their deep expertise in forensic collection as practiced by a cadre of forensic examiners leveraging their technical abilities into lucrative careers – thereby creating a significant barrier to entry for non-forensic eDiscovery collection tools and practitioners.

In spite of this strong incumbency, almost all corporate legal departments have long wanted a better approach to collection than forensic tools offered; many of their outside counsel have felt similarly.  They have long felt collection using forensic tools and workflows were and remain deeply flawed for eDiscovery in a number of ways:

  • Chronic overcollection: as forensic tools were built to capture all information, including things like slack space which can be important in criminal proceedings but are almost never even in scope in civil matters, the volume of data collected is far greater than needed. While service providers charging hourly professional services time and monthly per-GB hosting fees may not mind, for clients paying to collect/filter/host/review/produce knowingly unnecessary data this makes no sense and adds significant cost to the entire process, each and every time
  • Weeks or months-long process: because forensic tools must process data on a server before searching or culling it, they require physical access to a device (e.g. via a USB port). There is an option to copy entire drives with GBs of data through a VPN connection, but this approach has never worked well, if at all.  Given the coordination needed to gain physical access to devices which may be located in myriad different cities or countries, as well as the need to complete collection before paring down or even searching of data can begin, what should take hours or days instead takes weeks if not months
  • Highly disruptive: as each forensic image is being taken of each laptop or desktop, the user of each such machine must stop whatever they are doing and surrender their machine to the forensic staff for a day or more. Even if there is a spare laptop available, it will often have none of their ‘stuff’ on it.  Needless to say, this highly intrusive process makes each such worker far less productive and is very disruptive
  • “Recreating the wheel” every time: when the next matter arrives, can forensic examiners simply use the data from the last collection? Unfortunately, no, as each custodian has presumably created and received new data, necessitating the whole process from before be repeated.  Forensic collection quite literally recreates the wheel with every collection

By contrast, remote collection is designed specifically for civil eDiscovery.  It is built for a distributed workforce and requires no physical access to any devices.  A small software agent is installed on each device which creates its own local index; legal staff can then simply search this index for whatever ESI they want to find.  This distributed architecture facilitates ‘Pre-Case Assessment’, where search terms are sampled on data in-place, before any ESI is collected.  This turns the forensic collection workflow on its head, as analysis can be done from the very beginning of the preservation/collection process, allowing lawyers to gain insight far earlier in any proceeding and supporting a surgical collection process, leading to far lower data volumes (and therefore much lower eDiscovery costs).  And because remote collection can be an entirely cloud-based process, no hardware or specialized staff is required – in fact, collections can be done without IT ever being involved.

Why hasn’t the industry adopted remote collection before now?  Because everyone involved in the process except the client was benefited from it: forensic experts, service providers and forensic technology providers.  They had a strong incentive to keep things as they had always been, to the client’s detriment.  In a COVID-19 world, however, even these groups must change their workflows as physical access to devices has not only fallen out of favor – it is now impossible and perhaps even dangerous.  What remote employee would want a stranger to come to their home and take their laptop for hours?  That scenario is simply no longer an option.  Similarly to how touching a point-of-sale machine went from a minor inconvenience to a wildly irresponsible and even dangerous activity when Apple Pay is a far better approach, forensic collection in eDiscovery is in the process of giving way to remote collection.  Clients will be much better off for it.

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Filed under Best Practices, collection, Corporations, ESI, Information Access, Preservation & Collection, Uncategorized

Relativity Product Team Highlights Compelling X1 Integration for ESI Collection

By John Patzakis

Recently we hosted a webinar with Relativity highlighting the very compelling integration of our X1 Distributed Discovery platform with the RelativityOne Collect solution. This X1/Relativity integration enables game-changing efficiencies in the eDiscovery process by accelerating speed to review, and providing an end-to-end process from identification through production.  As stated by Relativity Chief Product Officer Chris Brown: “Our exciting new partnership with X1 highlights our continued commitment to providing a streamlined user experience from collection to production…RelativityOne users will be able to combine X1’s innovative endpoint technology with the performance of our SaaS platform, eliminating the cumbersome process of manual data hand-offs and allowing them to get to the pertinent data in their case – faster.”

blog-relativity-collect-v3

The webinar featured a live demonstration showing X1 quickly collecting data across multiple custodians and seamlessly importing that data into RelativityOne in less than two minutes. Relativity Collect currently supports Office 365 and Slack sources, and this X1 integration will now enable Relativity Collect to also reach emails and files on laptops and file servers. Relativity Senior Product Manager Barry O’Melia commented that the integration with X1 will “greatly streamline eDiscovery process by collapsing the many hand-offs built into current EDRM workflows to provide greater speed and defensibility.”

ComplianceDS President Marc Zamsky, a customer of both X1 and Relativity, recently commented that the “ability to collect directly from custodian laptops and desktops into a RelativityOne workspace without impacting custodians is a game-changer,” which will “reduce collection times from weeks to hours so that attorneys can quickly begin reviewing and analyzing ESI in RelativityOne.”

The live demonstration performed by O’Melia highlighted in real time how the integration improves the enterprise eDiscovery collection and ECA process by enabling a targeted and efficient search and collection process, with immediate pre-collection visibility into custodial data. X1 Distributed Discovery enhances the eDiscovery workflow with integrated culling and deduplication, thereby eliminating the need for expensive and cumbersome electronically stored information (ESI) processing tools. That way, the ESI can be populated straight into Relativity from an X1 collection.

The X1 and Relativity integration addresses several pain points in the existing eDiscovery process. For one, there is currently an inability to quickly search across and access distributed unstructured data in-place, meaning eDiscovery teams have to spend weeks or even months to collect data as required by other cumbersome solutions. Additionally, using ESI processing methods that involve appliances that are not integrated with the collection will significantly increase cost and time delays.

So in terms of the big picture, with this integration providing a complete platform for efficient data search, eDiscovery and review across the enterprise, organizations will save a lot of time, save a lot of money, and be able to make faster and better decisions. When you accelerate the speed to review and eliminate over-collection, you are going to have much better early insight into your data and increase efficiencies on many levels.

A recording of the X1/Relativity integration webinar can be accessed here.

With the ability to search and collect emails and documents across up to thousands of endpoints and network sources with industry-leading speed, X1 Distributed Discovery revolutionizes enterprise eDiscovery. For example, X1 empowers legal and consulting teams to iterate their search parameters in real time before collection, providing a revolutionary true pre-collection early case assessment capability. Additionally, with its intelligent collection capability, X1 performs instantaneous data processing (culling, de-duplication, text and metadata extraction, etc) in a fully automated manner.

And with the integration with Relativity, the X1 platform is even more compelling. As Marc Zamsky exclaimed “My clients are going to love this!”

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Filed under collection, eDiscovery, Preservation & Collection, SaaS, Uncategorized