If your business becomes involved in a lawsuit, one of the most important and time-consuming phases is discovery, where each side requests and exchanges relevant information. Traditionally, discovery meant sorting through paper files, contracts, and other hard-copy documents.
Today, most information is created and stored electronically. This is called e-discovery. Here’s what business owners need to know about e-discovery and how to stay prepared for litigation.
Understanding the Discovery Process
During discovery, each side can request materials and information. This can include written answers to formal questions, producing documents, depositions, and requests for admissions, which ask one side to confirm or deny specific facts. Discovery may also produce expert reports and opinions. Discovery in business litigation often includes internal communications, like emails or chat logs, accounting records, contracts, client or vendor agreements, meeting minutes, and digital metadata.
In Pennsylvania, the discovery process is governed by the Pennsylvania Rules of Civil Procedure, specifically Rules 4001 through 4020. Although Pennsylvania’s discovery rules are similar to those found in the federal system, there are important state-specific details that can affect how discovery is conducted. Local rules, court preferences, and case complexity can all influence how discovery proceeds in practice. Proper planning and legal guidance can help your company comply with state and federal laws.
What Is E-Discovery?
E-discovery involves identifying, collecting, and exchanging electronically stored information (ESI). This includes:
- Emails and attachments
- Text messages and instant messaging logs
- Documents stored in the cloud (Google Drive, Dropbox, SharePoint, etc.)
- Social media posts and messages
- Data from internal systems like CRMs or accounting software
- Metadata (information about how, when, and by whom a file was created or modified)
Unlike traditional discovery, e-discovery can involve vast amounts of data. Because ESI can be easily deleted, altered, or hidden, courts have strict rules for how businesses must preserve and produce electronic evidence.
Key Differences Between Traditional Discovery and E-Discovery
There are a few main differences between traditional and e-discovery:
- Volume: Traditional discovery can involve thousands of documents, but e-discovery can take up terabytes of data. This scale requires advanced tools and expertise to manage efficiently.
- Formats and sources: ESI comes in many formats, ranging from Word documents to server logs to Slack conversations. This data is often stored on different devices or platforms, requiring technical knowledge to access and review the information.
- Preservation requirements: When businesses anticipate litigation, they must preserve all potentially relevant ESI. This is called a “litigation hold.” Failing to preserve data can lead to serious consequences, like court sanctions or default judgments.
- Metadata: With paper documents, the content is what matters. With electronic files, metadata—like timestamps or version history—is often just as important.
What Business Owners Should Do to Prepare
Here are some tips to help you prepare for potential litigation:
- Know where your data is stored: Create an inventory of where important business records are stored. Include physical data as well as cloud services, company devices, email platforms, and backup systems.
- Implement a data retention policy: Work with your lawyer and IT teams to create a data retention policy that balances your business needs with legal requirements.
- Train your staff: If your business receives notice of pending litigation, employees must understand how to preserve relevant data. This includes not deleting emails or wiping devices. They should also avoid discussions over informal communication channels.
Contact Our Experienced E-Discovery Lawyers in Lancaster, PA
Whether it’s paper contracts or cloud-based data, discovery can make or break a case. By understanding the differences between traditional and electronic discovery and staying compliant with relevant laws, Pennsylvania business owners can protect their companies and reduce risk.
Lancaster Tech Law is here to guide you every step of the way. Our e-discovery lawyers can help you understand your rights and responsibilities whenever you have pending litigation. Call us today for a consultation and find out how we can help your business handle ESI and more.