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In-Housee-Discovery Processing:Much More Than Software
By Conrad J. Jacoby 
Many law-firm clients, horrifiedby the expense of having theirelectronic data collected andprocessed by outside discovery specialists, press their law firmsto find less expensive ways to getthese materials ready for produc-tion in discovery.Fortunately (and convenient-ly), vendors offer a variety of products that law firms could useto process digital discovery mate-rials in-house.Seeing the possibility of gener-ating additional revenue whilereducing a client’s out-of-pocketexpenses, many law firms’ tech-nology and training committeesare being tempted to add internalelectronic data discovery (EDD)processing services. Relatively few law firms, however, haveanalyzed the full range of techni-cal and legal issues that come with offering these services.Developing specialized EDDservices involves much more thanbuying a spare server andinstalling some off-the-shelf soft- ware. Building an EDD labrequires planning and carefulanalysis of technology, requiredexpertise, staffing, and legal-liabili-ty issues. Failure to adequately  weigh any of these points can leadto an unbalanced and under-prepared
Defining Metadata 
 Counsel’s Duty To Preserve And Produce Brought Forefront In Recent Case
By David H. Schultz
ecently, the term metadata has become an electronic buzzword for litigators,their clients, IT personnel, courts and lawmakers. From the English dictionary to the proposed amendments to the Federal Rules of Civil Procedure, many information sources are attempting to define and clarify metadata, and its role inmodern litigation.For example,
Merriam-Webster’s Collegiate Dictionary 
recently added “metadata”to its newest edition and defines it as “data that provide information about otherdata.” The proposed advisory committee note to Fed. R. Civ. P. 26(f) elaborates onthat definition, explaining metadata as “information describing the history, tracking,or management of an electronic document.”
The Sedona Guidelines: Best Practice Guidelines & Commentary for Managing Information & Records in the Electronic Age 
adopts a more thorough definition of metadata, describing it as “information about a particular data set which describeshow, when and by whom it was collected, created, accessed, or modified and howit is formatted (including data demographics such as size, location, storage require-ments and media information.)”
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 A recent Kansas decision — 
Williams v. Sprint/United Mgmt Co.
, 2005 WL 2401626(D.Kan. Sept. 29, 2005) — represents one of the most important court opinions onmetadata and parties’ obligations to produce it in response to a legal discovery request. The plaintiffs requested a “native” production of Microsoft Excel spreadsheetsto determine whether there were “any actual other columns or types of informationavailable” on them. After receiving the spreadsheets, the plaintiffs claimed that thedefendant “scrubbed” the spreadsheet files to remove metadata without producing a
 In This Issue
Defining Metadata . .1In-House e-DiscoveryProcessing . . . . . . .1New Rules Fore-Evidence: The CaseFor The Defense . . .3e-DiscoveryDocket Sheet . . . . .7
 Volume 2, Number 7 • November 2005
continued on page 2 continued on page 5 
LAW JOURNAL NEWSLETTERS
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log of the information scrubbed. Theplaintiffs also asserted the defendantlocked cells and data on the spread-sheets, preventing the plaintiffs fromaccessing those cells. Although thecourt did not sanction the defendant,it ordered the defendant to producethe spreadsheets’ metadata and toproduce “unlocked” versions of thosespreadsheets. The court held that“when a party is ordered to produceelectronic documents as they aremaintained in the ordinary course of business, the producing party shouldproduce the electronic documents with their metadata intact, unless thatparty timely objects to production of metadata, the parties agree that themetadata should not be produced, orthe producing party requests a pro-tective order.”Inconsistent and rapidly developingmetadata-production standards — such as those set forth in
Sprint 
 — may leave practitioners confused abouttheir obligation to produce metadatafor legal discovery or regulatory inves-tigations. According to JonathanRedgrave of Redgrave Daley Ragan & Wagner LLP, the dangers of failing tounderstand requirements surroundingmetadata production can be costly fora producing party. Redgrave notes that“Courts may order a producing party toproduce data again if associated meta-data relevant to the action was not pro-duced initially, and they may requirethe producing party to bear the fullcost of this second round of produc-tion. Accordingly, today there is apremium on thinking through issuesrelated to form of production at theoutset of the case.”If faced with a document produc-tion potentially involving metadata, you should prepare to address thefollowing concerns:What are the courts saying aboutmetadata and production?What technical aspects of metadataare important to a case? and• What production obligations are impli-cated by the existence of metadata?
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The current legal climate reflects atrend toward requiring practitioners toreview and produce metadata inresponse to a discovery request.
Armstrong v. Executive Office of the President 
, 1 F.3d 1274 (D.C. Cir. 1993),
rev’d in part on other grounds 
, 90 F.3d553 (D.C. Cir. 1996) was one of the ear-liest cases to address the discoverability of metadata. In
Armstrong,
the districtcourt held that government agenciesthat merely instructed employees toprint out a paper version of any elec-tronic communicationhad not reasonably discharged their preservation obliga-tions under the Federal Records Act.The appellate court affirmed, stating,“[w]ithout the missing information, thepaper print-outs — akin to traditionalmemoranda with the “to” and “from”cut off and even the “received” stamppruned away — are dismembered doc-uments indeed.” As the
Armstrong 
courtrecognized, metadata can provide key pieces of relevant evidence and infor-mation about a particular e-mail, spread-sheet or other electronic document. A number of courts have recognizedthe evidentiary value metadata can havein a case and have routinely orderedparties to preserve metadata duringlegal discovery. For instance, in
The Pueblo of Laguna v. United States 
, 60Fed. Cl. 133 (Fed. Cl. 2004), the courtgranted the plaintiffs’ request for aprotective order and required the gov-ernment to preserve all documents,includingelectronic information, e-mailand metadata that contained relevantinformation or that might lead to thediscovery of relevant information.Courts all over the United Stateshave declared parties to have an obli-gation to produce metadata. In
 Jicarilla Apache Nation v. United States 
,60 Fed. Cl. 413 (Fed.Cir. 2004), thecourt included metadata in its defini-tion of “documents” that needed to beproduced. The court directed the par-ties to produce records “in the formatin which that party routinely uses orstores them, provided that electronicrecords shall be produced along withavailable technical information neces-sary for access or use.”Some courts are extending the obli-gation to produce metadata to thirdparties. For example, an Illinois courtordered a third party to reproduce doc-uments — previously produced in
e-DiscoveryLaw&Strateg
 www.ljnonline.com/alm?edisc
PUBLISHER . . . . . . . . . . .Sofia PablesEDITOR-IN-CHIEF . . . . . .Michael Lear-OlimpiMANAGING EDITOR . . . . .Steven Salkin, Esq.MARKETING DIRECTOR . .Stephanie BowlandMARKETING PROMOTIONSCOORDINATOR . . . . . . . .Rob FormicaMARKETING ANALYSISCOORDINATOR . . . . . . . .Traci FootesGRAPHICDESIGNER . . . .Crystal R. HannaBOARD OF EDITORS WHITNEY ADAMS . . . . .Cricket TechnologiesReston, VA MICHAEL A. CLARK . . .EDDix L.L.C.Milford, CT PRASHANT DUBEY . . . .FiosPortland, OR MICHELE C.S.LANGE, ESQ. . . . . . . . .Kroll OntrackEden Prairie, MN ALEXANDER H.LUBARSKY, LLM, ESQ. . .ZantazSan Francisco ANTHONY MERLINO . .DolphinSearchPhiladelphiaKEVIN O’CONNOR . . . .TechLaw Chantilly, VA DAVID H.SCHULTZ, ESQ. . . . . . .Kroll OntrackEden Prairie, MNe- Discovery Law & Strategyis published by Law JournalNewsletters, a division of ALM. © 2005ALM Properties,Inc.All rights reserved. No reproduction of any portionof this issue is allowed without written permission fromthe publisher. Telephone: (800) 999-1916Editorial e-mail: ssalkin@alm.comCirculation e-mail: subspa@alm.com The publisher of this newsletter is not engaged inrendering legal, accounting, financial, investment advisory or other professional services, and thispublication is not meant to constitute legal,accounting, financial, investment advisory or other professional advice. If legal, financial, investment advisory or other professional assistance is required,the services of a competent professional personshould be sought.e- Discovery Law & Strategy POSTMASTER: Send address changes to: ALM1617 JFK Blvd., Suite 1750, Philadelphia, PA 19103 Annual Subscription: $399
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e-Discovery e-Discovery 
LAW &STRATEGY LAW &STRATEGY 
 Defining Metadata
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November 2005
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New Rules for e-Evidence: The Case For  The Defense
By Sonya L. Sigler 
 Part One of Two
More than a few attorneys have sofar managed to stave off the fatefulday when they truly will have toaddress electronic evidence. Eitherthey have been fortunate or smart intheir selection of cases, or someoneelse has taken care of these issues forthem. Or maybe they and opposingcounsel have quietly decided thatthere was really nothing very inter-esting in those e-mails and that thepaper documents will be adequate.However, that fateful day is arrivingquickly as proposed changes to theFederal Rules of Civil Procedure comecloser to final approval. (
See 
, www.uscourts.gov/rules/newrules6.html.
See also 
, “U.S. Judicial Conference ApprovesFRCP e-Discovery Amendments” in theOctober issue of 
e-Discovery Law & Strategy 
.) Although these new rules arenot in effect yet, some courts and prac-titioners are being guided by the pro-posed changes.Many defense attorneys feel con-demned to the role of Sisyphus, eter-nally pushing a rock up a mountain.They believe the burden of the newrules adds rocks to push. One of thebroadest-reaching implications of thenew rules is to make the process forreviewing electronic data much moretransparent.Let’s examine implications andstrategies concerning these proposedchanges, particularly for counsel rep-resenting organizations that holdlarge amounts of electronically storedinformation.
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Proposed rule 26(f) makes explicitthe requirement for both sides toaddress e-discovery issues early in theprocess. Both sides must develop agood understanding at this early stageof what electronically stored informa-tion exists, where it is stored, howmuch there is and whether any of it isnot reasonably accessible. When thisrequirement is coupled with increas-ing quantities of electronic data, attor-neys must quickly develop a strongcommand of electronic-discovery issues that will be a crucial componentof their case strategy.
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The defendant who can respondquickly and intelligently to discovery requests will have a significant strate-gic advantage. It is vital to preparelong before any subpoena arrives by proactively managing informationassets: It’s important for the organiza-tion to understand what information itholds, and to implement policies fordeleting any that needn’t be kept forregulatory or business reasons. Pro-actively managing electronically storedinformation can decrease the amountof data subject to discovery. If anorganization has historically keptmuch of its data without any system-atic retention policy, then goingthrough the discovery process willlikely be a very painful, expensive andtime-consuming process.Legal (in-house and outside coun-sel), information-technology and busi-ness teams must learn to work moreclosely together to effectively manageall electronically stored information.None of the information-management,document-retention or complianceobligations can be met solely by any one group in an organization, becauseno one group has the requisite expert-ise. Business executives own the infor-mation; in-house counsel, sometimes with assistance from outside counsel,must formulate legal strategy andadvise the executives; and IT staff arethe guardians and operators of the sys-tems that house the data. Thesegroups will need to establish a close working relationship to put any document-retention or compliancepolicies into practical effect.
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The single most significant implica-tion of the proposed rules once thecase begins is that both sides willneed to understand, far earlier than isthe current practice, what potentialelectronic evidence may exist, whereit is, how much there is, and whichcustodian’s data is where, and on what computer or backup media. Additionally, proposed rule 26(b)(2)(B)recognizes the difference betweeninformation that is “reasonably acces-sible” and that which is not, due toundue burden or cost of retrieval.Under this rule, the respondent isresponsible for knowing where thishard-to-access data is, and will haveto explain why the “burden or cost”makes it not reasonably accessible.To gain the early insight required tohold fruitful discussions regardingelectronically stored information, bothsides may need to depend on moresophisticated tools than have typically been deployed to date.
Zubulake 
set aprecedent of using statistical samplingof backup tapes to determine whetherthey might hold relevant e-mail mes-sages that would justify their widerrestoration.
Zubulake v. UBS Warburg 
,217 F.R.D. 309 (S.D.N.Y. 2003). Coun-sel’s knowledge of these and othermore advanced e-discovery tech-niques will play an increasingly impor-tant role in understanding what data you have and what it means. Whatever both sides agree to at themeet-and-confer sessions needs to bemanageable. For corporate clients,cost pressures will play an increasingrole in selection of vendors andmethodologies. Costs are already highand the 2005
Fullbright & Jaworski Second Annual Litigation Trends Survey 
reports that controlling costs isgeneral counsel’s number-one con-cern. Knowing what you have — and where it is — is the first step towardbeing able to more closely control dis-covery expenses.
Part Two, next month, will discuss how e-evidence impacts overall case strategy and management, and look at some of the latest e-discovery tools available to defense attorneys and their clients.
e-DiscoveryLaw&Strategy 
 www.ljnonline.com/alm?edisc
 — 
 — 
Sonya L. Sigler 
is vice president of business development and generalcounsel at Cataphora Inc. (www.cat-aphora.com). She is a member of theCalifornia State Bar and is a frequentspeaker on various topics, includingelectronic discovery. She is a memberof the Sedona Conference WorkingGroup 1 on Electronic DocumentRetention and Production. Reach herat sonya@cataphora.com.
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