In April 2012, the RAND Institute for Civil Justice, a research institute dedicated to improving the civil justice system, conducted a study to evaluate one of the most compelling challenges corporations face in this era of digital information:
Where does the money go? Understanding discovery costs and litigant expenditures for producing electronic discovery.
The RAND study addressed the following issues:
- What are the costs associated with different phases of e-discovery production?
- How are these costs distributed across internal and external sources of labor, resources and services?
- How can these costs be reduced without compromising the quality of the discovery process?
- What do litigants perceive to be the key challenges of preserving electronic information?
RAND utilized a case study methodology that identified eight Fortune 200 companies (communications, energy, electronics, pharmaceuticals, household care products, insurance and biotechnology/ medical device) that were willing to provide in-depth information about e-discovery production expenses for a total of 57 cases (a minimum of 5 cases per company), including lawsuits and regulatory investigations.
RAND examined the costs of collection, processing and review in the context of their sources: internal, such as law department counsel and IT department staff; vendors; and outside counsel.
The Findings and Recommendations:
In the majority of cases, document review constitutes 70% of the total cost of document production, and these services are typically outsourced to outside counsel and/or outside vendors or consultants.
- Adopt computer categorization to reduce the costs of review in large-scale discovery efforts.
The costs of preservation and collection of electronically stored information (ESI) continue to increase, and companies do not have adequate means to track or contain these costs.
- Improve tracking of costs of production and preservation.
There is a lack of clear legal authority regarding defensible strategies for preservation duties.
- Bring certainty to legal authority concerning preservation.
The Solution: Falcon InsideOut™
Falcon Discovery’s cutting edge InsideOut™ managed services program helps corporations take control of discovery and reduce costs.
Falcon’s InsideOut™ program affords corporate clients significant cost savings, i.e. 85% below the industry average for discovery review and production costs per the RAND study.