Discovery Tools Tactics and Strategies

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					Electronic Evidence: New Challenges
  for Information Security Officers

              Presented by:
              Tom Greene
Chief Assistant Attorney General, Public Rights
                    Division
               Clark Kelso
 Chief Information Officer, State of California

                                                  1
                  Overview

 Introduction to the recent FRCP amendments
  for “Electronically Stored Information” (ESI)
 Implications for Information Security
  Officers
 Resources
 Questions


                                              2
    E-Data has been Discoverable
    and Admissible for Some Time

 “Fed. R. Civ. P. 34(a): “document” includes “data
  compilations from which information can be obtained,
  translated, if necessary, by the respondent through
  detection devices into reasonably usable form”

 “Today it is black letter law that computerized data is
  discoverable if relevant … The law is clear that data in
  computerized form is discoverable even if paper ‘hard
  copies’ of the information have been produced….” Anti-
  Monopoly, Inc. v. Hasbro, Inc., 94 Civ.2120, 1995 WL
  649934 (S.D.N.Y. 1995)

                                                             3
   FRCP Amendments and
   E-Evidence
 Amendments to the Federal Rules of Civil
  Procedure address “electronically stored
  information” (ESI)

 Apply to cases brought on or after 12/1/06
  and all other cases unless “would not be
  feasible or would work injustice.” Rule 86.

                                                4
      Amended Rule 34(a):
“Electronically Stored Information”

“Any party may serve…a request…to
 produce designated documents,
 electronically stored information—
 including writings, drawings, graphs,
 charts, photographs, sound recordings,
 images, and other data or data
 compilations stored in any medium from
 which information can be obtained—
 translated, if necessary, …into
 reasonably useful form…”
                                      5
     Four Concepts in the New Rules

 Early Consideration of ESI issues

 Two-Tier Approach to Back-up Media

 Practical Adjustments

 Shallow Safe Harbor for E-Document
  Destruction

                                       6
       Critical Decisions Come Early!

 Rule 26(f) Conference Among Counsel
      ASAP but not later than 16 days before Rule 16
       conference or issuance of scheduling order.
 Rule 26(a) disclosures of ESI
      At or w/in 14 days of 26(f) conference unless a different
       schedule per stipulation or order.
 Rule 16 Conference Order
      ASAP but at least w/in 90 days of appearance of
       defendant or 120 days from service of complaint.


                                                                   7
         Rule 26(f) Meet and Confer
                 Obligation

 Discuss “any issues relating to preserving
  discoverable information”.
 “changes in the timing, form or requirement for
  disclosures under Rule 26(a)”
 “[A]ny issues” relating to ESI including the “form
  or forms” of production.
 New Form 35 for report to court.
 Consider bringing a consultant/expert.

                                                       8
      Rule 26(a) Initial Disclosures

 26(a)(1)(A)—Witnesses
     May need to include e-evidence custodian(s);
      might well be an ISO.

 26(a)(1)(B)—”a copy of, or a description by
  category of, all documents, electronically
  stored information….that the disclosing party
  may use to support its claims or defenses”

                                                     9
          Rule 26(a); Sanctions

 If fail to “make a disclosure under Rule
  26(a), any other party may” move to compel
  and for “appropriate sanctions”. Rule
  37(a)(2)(A).
 May not be “permitted to use” the
  undisclosed information “at a trial, at a
  hearing, or on a motion”. Rule 37(c)(1).

                                               10
            Rule 16 Conference

 Per Advisory Committee, Court is to start w/
  26(f) Report of Counsel.
 Order is to include “provisions for disclosure
  or discovery of” ESI. Rule 16(b)(5).
 Order may include “any agreements the
  parties reach for asserting claims of privilege
  or of protection of trial-preparation material
  after production.” Rule 16(b)(6).

                                                11
                    Local Rules

 N.D. Cal. Civil Local Rule 16-9 requires a
  description of:
     “Steps taken to preserve evidence relevant to the
      issues reasonably evident in the action, including
      interdiction of any document-destruction
      program and any ongoing erasures of e-mails,
      voice-mails, and any other electronically-stored
      material.”

                                                       12
Duties of Litigation Counsel
   Communicate discovery obligations to client
   Identify sources of discoverable information
   Speak directly with key players in litigation as well as
    IT personnel
   Put in place a litigation hold
   Reiterate instructions for litigation hold and monitor
    compliance
   Call for employees to produce copies of e-evidence
   Arrange for segregation and safeguarding of archival
    media (backup tapes) (Zubulake V, 229 F.R.D. 422
    (S.D.N.Y. 2004)


                                                           13
          Potential Role(s) of ISOs

 Consultant (How do your systems work?)
     Informal Advice; Attend 26(f) session or 16(b)
      conference
 Witness
     Persons Most Knowledgeable (PMK)
      Depositions
 Design/Implement Litigation Hold; Search
  for Information

                                                       14
       What Should You Explain to
             Your Lawyers?
 Discuss Email System
     Hardware, Software, Versions, Location, etc.
 Discuss File Servers
     Hardware, Software, Versions, Location, etc.
 Discuss PCs
     O/S, Recent Upgrades, Applications, Versions
 Discuss PDAs
     Blackberry, Treo, Palm, etc.
                                                     15
      Talking to Your Lawyers, Part
                    2
 Backup Policy
 Retention Policy
 Destruction Policy
 Capable of Litigation Holds?
 Other considerations:
     Thumb drives
     Working from home
     Personal Archives
                                      16
   Special Problems with Voice Mail

 Voice mail typically Not under Your Direct
  Control

 Contact 3rd-Party Vendor ASAP

 Secure hold on Voice Mails for “Key
  Players”

                                               17
            Two-Tier Approach; Rule
                 26(b)(2)(C)
 “A party need not provide discovery of [ESI]from sources
  that the party identifies as not reasonably accessible”

 Committee note states that fact that archived data expensive
  to access does not mean don’t have to preserve back-up
  media.

 Demanding party can motion for production if value
  outweighs burden taking into account amount in
  controversy, parties’ resources, issues in case and
  importance of the proposed discovery.


                                                             18
   States of Data: Cheap to Expensive

 Active data ($)
 Metadata ($)
 System data ($)
 Backup tapes ($$$)
 Deleted and altered files ($$$$)
 Legacy data ($$$$$)

                                     19
       Budget Issues: Costs for Managing
       E-Evidence
 Collect data
      $250-500 per hard drive or backup tape
      $2,000-3,000 per server
 Cull and Search for Relevant Data using Tech Tools
      $1,800 per hard drive; more for backup tapes.
      $450 per e-mail box
 Produce Relevant Data
      $750 per hard drive to prepare data for production in proper format
 Convert data to litigation support repository for privilege
  review
      $4 per Megabyte plus $.10/page for Bates numbering and tiffing the
       images
                                                                             20
   Practical Adjustments: Form(s) of
   Production

 FRCP 34(b) authorizes demanding party to
  “specify the form or forms in which [ESI] is
  to be produced”; subject to challenge.

 Per Advisory Note, can specify different
  forms for spreadsheets and documents.


                                                 21
   Metadata and Why It May Be
   Important in a Lawsuit

 Classic e-mail metadata fields
      From, To, Subject, Date, cc, bcc, Text of email
      Date and time e-mail and/or attachment opened
 50-60 other types of fields are available
 Embedded data (e.g., Excel formulas, Word
  Processing prior versions)
 Expensive to manage and produce; relevance
  depends on the nature of your case.

                                                         22
       Typical Forms of Production

 Native Format – ESI is produced as it was
  maintained and used; contains metadata.
 Quasi-Native – ESI is produced in a format
  similar to, but not the same as, the format in
  which it was maintained and used.
     Proprietary software
     Large databases

                                                   23
      Forms of Production, Part 2

 Quasi-Paper – ESI is converted to image
  files, typically TIFF or PDF; meta data and
  full text are extracted.
 Quasi-Paper Hybrid – Meta data and text are
  extracted with a link to the native file.
 Paper
 What do you really need?
 Be careful what you ask for. . .
                                            24
   Rule 37: “Shallow Safe
   Harbor”
 FRCP 37(f) provides that “absent exceptional
  circumstances, a court may not impose
  sanctions…[for ESI]… lost as a result of the
  routine, good-faith operation of an electronic
  information system.”
 Good faith per Committee Note includes
  retention under common law, etc. and
  existence of effective litigation hold.

                                               25
   Retention Obligation: Practice
   Tips
 Normal business destruction will not yield
  sanctions under FRCP.
 But Improper Destruction Creates Major
  Risks for Your Agency.
 Written Litigation Hold Policies are Highly
  Recommended.


                                                26
   What is “spoliation”?

 “the destruction or significant alteration of
  evidence, or the failure to
  preserve…evidence in pending or reasonably
  foreseeable litigation.” West v. Goodyear,
  167 F.3d 776,779 (2nd Cir.1999)


 contra spoliatorem omnia proesumuntur.
  Black’s Law Dictionary4th

                                              27
   Sources of Duty to Preserve

 Knew or should have known of possible
  litigation
 Specific statutes, e.g. Sarbanes-Oxley; SEC
  Rules
 Court order
 Agreement


                                                28
           When Does Duty Attach?

 Based on common law “knew or should have
  known” standard:
     When Product Designed. Carlucci, 102 F.R.D. 472
      (S.D.Fl.1984)
     When Complaints Received. Remington, 836 F.2d 1104 (8th
      Cir.1988)
     When litigation suspected. Zubulake IV, 220 F.R.D. 212
      (S.D.N.Y.2003)
     When major accident occurs. Union Pac. R.R., 2004
      U.S.App.LEXIS 6 (8th Cir.2004)


                                                               29
    Preservation of Metadata May Be
                Required

 Relevance of metadata depends on the case.

 Burden of disclosing metadata on the
  producing party. Williams v. Sprint, 2005 U.S.
  Dist. Lexis 29882 (D.Md. 11/22/05)


 Discuss at 16(b) conference.

                                               30
   What remedies?

 “Most potent” is the adverse inference
  instruction. Cedars-Sinai, 18 Cal.4th 1, 11(1998)
 Example: New CA standard instruction 205
  reads: “You may consider whether one
  party intentionally concealed or destroyed
  evidence. If you decide that a party did so,
  you may decide that the evidence would
  have been unfavorable to that party.”

                                                  31
                Other Sanctions

 Monetary

 Evidence

 Issue

 Terminating

                                  32
             A Few Examples

 Leon v. IDX (9th Cir. 2006) 464 F.3d 951
  (files deleted from laptop; dismissal)
 U.S. v. Gordon (9th Cir.2004) 393 F.3d 1044
  (use of “Evidence Eliminator to scrub drive;
  pay costs and conviction affirmed)
 In re Napster (N.D.Cal. 10/25/06) 2006 WL
  3050864 (deletion of e-mail; adverse
  inference instruction)

                                                 33
                  More Examples

 World Courier v. Barone (N.D.Cal., No. C 06-
  3072 THE, 4/13/07) (destruction of hard drive in IP case by
  non-party husband; adverse inference instruction, costs;
  relies on Residential Funding v. DeGeorge Fin. (2d Cir.
  2002) 306 F.3d 99, 105)


 People v. Hanson Building Materials (Contra
  Costa County, No. MSC04-00424, 5/3/07) (Failure to retain
  e-mail; CA state agency ordered to pay $79K in fees/costs +
  adverse inference instruction; writ pending)

                                                            34
   Litigation Hold Requirement:
   Policy and Implementation
 Create Policy to:
      Determine When Hold is to be Imposed
      Define what is to be preserved
      Staff responsibilities
 Implementation Issues:
      ID key players who are involved
      ID relevant records/docs/systems/computers
      Contact and interview all key players
      Will metadata be material? A forensics snapshot?
      Will legacy data or backup media need to be preserved?
      When do we need an outside expert?
                                                                35
       Litigation Hold Procedures:
       Training and Follow-up
 Follow-up
      Meetings and regular reminders
      Individual Interviews
      Determine if staff requires further clarification

 Document the process




                                                           36
   Resources

 Sedona Guidelines (sedonaconference.com)
 Zubulake decisions
 Michael Arkfeld ,Electronic Discovery and
  Evidence (All AGO libraries)
 BNA, Digital Discovery and E-Evidence
 Internet resources
     Discoveryresources.org; krollontrack.com;
      FIOS.com; applieddiscovery.com; Note webinars.


                                                       37
    Take-Aways?

 E-Discovery Presents Serious Risks to Your Agencies.

 ISOs Will Have Important Roles in Future Litigation

 Need to Partner Early with your CIO, the AG and your
  General Counsel’s Office.

 Need for Standards and Guidelines (Which You Should
  Help Write).


                                                         38
Thanks and Questions




                       39

				
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