By Wendy Butler
Curtis and Jeffrey
W. McKenna
On October 15, 2012, Vice Chancellor
J. Travis Laster of the Delaware Court of Chancery ordered the
parties in EORHB,
Inc., et al. v. HOA Holdings, Inc., et al., Case No.
7409-VCL (Del. Ch. Ct. Oct. 15, 2012) to utilize predictive coding
technology for their document review and productions or else show
cause why the use of predictive coding was not appropriate.
(See 10/15/2012 Tr. at pp. 66-67.)
The court ordered the parties to locate a
single eDiscovery provider that had the capability to separately
house documents collected by both sides. Should the parties not be
able to agree on a single provider, the court asked that each side
submit names of its preferred vendors so that the court could select
one. In issuing this order, the court cited a desire to spare the
parties from spending hours manually reviewing documents.
Below is an excerpt from the hearing:
This seems to me to be an ideal
non-expedited case in which the parties would benefit from using
predictive coding. I would like you all, if you do not want to use
predictive coding, to show cause why this is not a case where
predictive coding is the way to go. I would like you all to talk
about a single discovery provider that could be used to warehouse
both sides' documents to be your single vendor. Pick one of these
wonderful discovery super powers that is able to maintain the
integrity of both side's documents and insure that no one can
access the other side's information. If you cannot agree on a
suitable discovery vendor, you can submit names to me and I will
pick one for you . . . I would really encourage you all, instead
of burning lots of hours with people reviewing, it seems to me
this is the type of non-expedited case where we could all benefit
from some new technology use. (Id.)
Sophisticated and unsophisticated litigants
alike shudder at the thought of courts mandating
specific discovery practices or selecting vendors. Whether on
motion or sua sponte, such decisions by courts are contrary to the
well established principle that a responding party is best situated
to evaluate the procedures, methodologies and technologies for
collecting, searching and producing its own electronically stored
information1 and fail to account
for company investments in internal tools, preferred vendor
relationships or company-specific and unique data requirements.
For those who do not know, predictive coding,
or automated review as it is sometimes known, is an evolving
technology that provides litigants with a computer-assisted
alternative to manual review of large document sets. Although there
are numerous manifestations of the technology, nearly all
involve a team of attorneys manually reviewing a small sampling of
documents to "train" the computer how to code the bulk of the
documents at issue. While the use of predictive coding, when
effectively deployed and not subject to motion practice, may reduce
the cost and increase the speed of review, and has been, and
continues to be, successfully used by our Global Operations Center
Discovery Analytics & Review Services team, it is not a good fit
for every case. In fact, until quite recently, very few courts had
addressed the proposition of predictive coding, making Vice
Chancellor Laster’s sua sponte ruling all the more surprising. For a
more detailed discussion of predictive coding, please see our
recent client alert The Trend
Towards Greater Adoption of Predictive Coding: the Good, the Bad,
and the Ugly (Sept. 7, 2012).
1 See The Sedona
Principles, Second Edition: Best Practices, Recommendations &
Principles for Addressing Electronic Document Production (The Sedona
Conference® Working Group Series, 2007), Principle 6. |