What exactly is e-discovery or electronic discovery and if I’m a small business, does it even apply to me? Companies and organizations hear the phrase used frequently in conjunction with Federal Rules of Civil Procedure (FRCP) or more precisely with the recent amendments to the FRCP.

E-discovery in its simplest description is the requirement of parties in a lawsuit to exchange documents that are only available in electronic format. Electronic documents can include emails, word processing documents, spreadsheets, audio files, instant messages, websites, graphics or drawings, photographs, and a slew of other digital information.

The recent amendments to the Federal Rules of Civil Procedure (FRCP) make e-discovery relevant for any type of business, including small businesses. Recent studies show that companies store their documents in electronic format and don’t have printed copies of the information. So in the past, discovery meant looking through physical documents. Now, discovery includes sifting through electronic documents.

E-discovery can be a very arduous process in terms of searching for and finding data relevant to a lawsuit. However, there are tools, software and services that can help companies sift through the information that’s relevant, especially information such as email.

However, before looking at e-discovery issues, companies must step back and address retention, archive and data destruction policies, as this is the backbone of what and how e-discovery can take place.

Does your company have a written policy on how long data and information should be retained and stored? If not, that is one of the first steps that needs to be performed and it should be done in conjunction with your legal advisors. Next, it’s imperative that employees read and understand the policy. Many times, human error is the weakest link in the chain and where companies spend the least amount of time in communicating these policies. Lastly, enforcement and monitoring of the policies is where software, tools and processes play a role in this function. It is only when you have policies and procedures in place that you can even perform e-discovery.

Many companies are probably thinking, “how long do I need to retain the information?” This question can only be answered by a combination of your legal advisors and management team. In short, it’s a matter of weighing the risks vs. the costs. What are the chances that you may never be involved in legal action that requires e-discovery? What are the penalties of not being able to produce electronic documents when requested?

All Covered can work in conjunction with your legal team to assist you in implementing and enforcing these policies using the appropriate technology.

All Covered Care – the complete care package for your Information Technology infrastructure.

This information is not meant to be legal advice. You should discuss your archive, retention and data destruction policies with your legal counsel.

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