According to attorneys and executives surveyed, responding to discovery requests has become significantly more complex (33 percent) and more costly (30 percent) during the past year. Less than one-third of respondents reported that their companies are very (20 percent) or extremely (7 percent) effective in managing the readiness aspect of the discovery process, which includes procedures and protocols to manage electronically stored information and hard copy documents in anticipation of discovery requests.
Respondents reported that guidance provided to the IT department on litigation hold policies was unclear (5 percent) or only somewhat clear (35 percent) further contributing to the challenges organizations face in complying with discovery requests that are heavily based in electronically stored information.
"Bringing both IT and legal teams to the table to develop a discovery readiness program is an important step that organizations should take to protect themselves given the current regulatory and legal environment," said Seymour.
Major causes of increases in cost and complexity of complying with discovery requests for respondents included complexity of producing electronic information (78 percent) and changes in discovery rules (44 percent).
"Throughout the business day, we engage in multiple activities that generate various sources of electronic data that might be subject to discovery including voicemail, email, text messaging, instant messaging and other electronic files, and our corporate IT infrastructure tends to replicate much of that data, furthering the continued and rapid increase in electronically stored data volumes," said Bruce Hartley, a director in the Analytic & Forensic Technology practice of Deloitte Financial Advisory Services.
