Why E-Discovery Cooperation Is Best for Both Sides | Law.com

Mention “cooperation between parties” to a group of litigators and you usually get facetious exhortations to hold hands and sing “Kumbaya” or “We Are the World.” Respond that you are not talking about utopian fantasies, but ways for both sides to get what they want (or, at least, paying props to Mssrs. Jagger and Richards, what they need), the group will usually respond that cooperation in litigation, like communism, always looks great in theory but never works in practice.

When dealing with e-discovery, however, cooperation can and does work. Once the parties understand what is at stake, skeptical posturing can give way to steps that actually benefit both sides.

WHAT’S AT STAKE

Interestingly, the economic philosopher who best understood the benefits of cooperation was not Karl Marx but Adam Smith, who explored in “The Wealth of Nations” his postulate that economic actors act in their enlightened self-interest and so the free marketplace was the best setting for them. The same holds true here; so what is key is that the parties understand what their enlightened self-interest is.

Absent exceptions, producing parties bear the costs of preservation, collection, processing, searching, reviewing, and producing e-discovery. As has caught the attention of one, two, or several million people over the last number of years, those costs can be considerable. Thus, it is in the enlightened self-interest of the producing party to minimize e-discovery costs. Minimizing such costs in improper ways, however, can lead to dire consequences. In the “poster child” spoliation case of Zubulake v. UBS Warburg, the failure to preserve, collect, and produce e-discovery properly led first to increased e-discovery costs as the producing party had to try to find later, at a much higher cost, what it did not preserve earlier at a lower cost, and then to dire sanctions for spoliation.

via Why E-Discovery Cooperation Is Best for Both Sides.

International Cooperation & Collaboration on Asset Forfeiture « USDOJ: Justice Blog

It is becoming increasingly common for criminals to commit their crimes in one country and launder illicit proceeds in another.  Law enforcement partners from around the globe must work together to locate and forfeit the proceeds of these criminal activities, increasing the need for cooperation and collaboration.

To foster this cooperation and collaboration, forfeiture experts from the United States and Latin American countries are gathering in Lima, Peru, to discuss the use of asset forfeiture to fight international crime, including drug cartel operations in Latin America. The event is hosted by the Asset Forfeiture and Money Laundering Section in the Justice Department’s Criminal Division, in partnership with the Bureau of International Narcotics and Law Enforcement (INL) of the U.S. Department of State and the Public Ministry-Fiscalia de la Nacion of Peru.

Many of the countries represented at the conference have successfully investigated and assisted in the restraint and forfeiture of criminal funds related to narcotics trafficking, fraud, smuggling and other serious crimes.  Speakers from Colombia, Mexico and the United States, as well as panelists from Peru, Paraguay, Brazil and Guatemala, will describe their experiences in using asset forfeiture as a tool in combating these types of crimes, including sharing successful investigative techniques and discussing current challenges.

via International Cooperation & Collaboration on Asset Forfeiture « USDOJ: Justice Blog.

Court Orders Cooperation to Create ESI Protocol and Re-Production of ESI in Searchable Format : Electronic Discovery Law

In re Facebook PPC Adver. Litig., No. C09-3043 JF (HRL), 2011 WL 1324516 (N.D. Cal. Apr. 6, 2011)

In this case, the court granted plaintiffs’ motion to compel Facebook’s participation in the creation of an ESI Protocol, despite Facebook’s resistance, and ordered that Facebook re-produce ESI in native format.  The court also prohibited Facebook’s use of Watchdox.com, a website on which Facebook had made available responsive documents, subject to its significant control (e.g., uploaded documents could not be printed and Facebook was able to track which documents had been reviewed and by whom).

Following several discovery-related disputes, plaintiffs sought to compel Facebook’s participation in the creation of an ESI Protocol “that would ‘set forth the manner and form of electronic production, including an agreement on search words or phrases, custodians, time frame and/or terms that Facebook will employ in producing ESI ….’”  Facebook resisted and argued that there was “no basis” for the court to “impose ‘rigid[,] up-front requirements that [P]laintiffs are demanding’” and stated “concern” that “forcing the parties to try to anticipate and address all potential issues on the form of electronic production would likely have the result of frustrating and slowing down the discovery process.”

via Court Orders Cooperation to Create ESI Protocol and Re-Production of ESI in Searchable Format : Electronic Discovery Law.

Court Orders Sharing of Non-Party’s Discovery Costs, Cites Lack of “Spirit of Cooperation or Efficiency” as “Controlling Factor” : Electronic Discovery Law

DeGeer v. Gillis, 2010 WL 5096563 (N.D. Ill. Dec. 8, 2010)

Defendants and non-party Huron Consulting Services, LLC could not agree on the proper course of discovery.  After protracted communications consisting of accusations and demands, defendants sought to compel Huron to conduct additional searches for responsive ESI.  The court found that some additional searching was warranted and ordered counsel to meet and confer in person to establish the proper scope.  Citing the parties’ failure to cooperate as a “controlling factor” as to cost-shifting, the court ordered the parties to split the costs, with one exception.

Defendants subpoenaed Huron seeking information relevant to ongoing litigation.  Huron complied, in part, but refused, for example, to restore certain back up tapes without cost-shifting and repeatedly declined to share the details of its searching with defendants.  Defendants, for their part, refused to provide Huron with search terms, despite repeated requests.  The details of the dispute are rather protracted.  Suffice it to say, even after Huron provided defendants with a general description of its database and search terms (pursuant to court order), no agreement could be reached regarding the proper scope of discovery and judcial intervention became necessary.

via Court Orders Sharing of Non-Party’s Discovery Costs, Cites Lack of “Spirit of Cooperation or Efficiency” as “Controlling Factor” : Electronic Discovery Law.

Companies brace for UK Bribery Act wake-up call | Reuters

Vexed British and overseas companies with businesses in the UK are in a race to tighten ethical procedures as the country poises to impose one of the most draconian anti-corruption laws in the world.

Britain’s bribery laws have for years been criticised as not fit for modern times by the likes of the OECD, the international Organisation for Economic Cooperation and Development that helps governments tackle economic, social and governance problems.

But the Bribery Act, due to come into effect next April, has unsettled those eyeing a new offence of failure to prevent bribery, which makes businesses with any UK interest criminally liable if staff, subsidiaries, intermediaries or “associated persons” offer bribes on their behalf across the world.

“We’ve got a team on it,” said one drug company official. “This is not just a one-off. It’s a question of having to put a system and processes in place permanently … It’s about clarifying the rules for employees and other companies we work with — and the need to keep monitoring things.”

As always, much depends on definitions. Companies can be dragged into the dock and handed unlimited fines if they cannot show they have “adequate procedures” to prevent bribery. Guilty individuals face up to 10 years in prison and unlimited fines.

The planned act is more draconian than the relatively fierce U.S. Foreign Corrupt Practices Act (FCPA), for it also bans the bribery of people other than public officials as well as “facilitation payments” — to speed up services such as visa applications or approval for aircraft take-off slots.

via Companies brace for UK Bribery Act wake-up call | Reuters.

BusinessWorld Online Edition: Coming clean and the economics of bribery

With the recent promotion by the Paris-based Organization for Economic Cooperation and Development (OECD) of the Philippines to its list of countries that have substantially implemented internationally agreed tax standards — more commonly known as the “white list” — tax evaders now face greater scrutiny from revenue authorities.

It may be recalled that our country has been on the gray list — consisting of those countries that have committed but have not yet fully complied with internationally agreed tax standards — since April 2009, following its removal from the black list of uncooperative havens for suspected tax cheats.

Although the Philippines is not a member of the OECD, it is a signatory to the Anti-Corruption Action Plan for Asia and the Pacific as well as the 2003 UN Convention Against Corruption which set the international benchmark for anti-bribery legislation.

Another anti-corruption mechanism in the international arena is the US Foreign Corrupt Practices Act (FCPA), which also finds substantial application in the Philippines due to the presence of a number of American multinational companies. The FCPA empowers the US authorities to prosecute US companies for paying bribes to foreign officials.

In US alone, as many as 120 companies have been investigated on suspicion of FCPA violations. In February 2009, an oil services company and its subsidiary were fined a penalty of $579 million — the largest fine ever paid in an FCPA case.

via BusinessWorld Online Edition: Coming clean and the economics of bribery.

BusinessWorld Online Edition: Coming clean and the economics of bribery

With the recent promotion by the Paris-based Organization for Economic Cooperation and Development (OECD) of the Philippines to its list of countries that have substantially implemented internationally agreed tax standards — more commonly known as the “white list” — tax evaders now face greater scrutiny from revenue authorities.

It may be recalled that our country has been on the gray list — consisting of those countries that have committed but have not yet fully complied with internationally agreed tax standards — since April 2009, following its removal from the black list of uncooperative havens for suspected tax cheats.

Although the Philippines is not a member of the OECD, it is a signatory to the Anti-Corruption Action Plan for Asia and the Pacific as well as the 2003 UN Convention Against Corruption which set the international benchmark for anti-bribery legislation.

Another anti-corruption mechanism in the international arena is the US Foreign Corrupt Practices Act (FCPA), which also finds substantial application in the Philippines due to the presence of a number of American multinational companies. The FCPA empowers the US authorities to prosecute US companies for paying bribes to foreign officials.

In US alone, as many as 120 companies have been investigated on suspicion of FCPA violations. In February 2009, an oil services company and its subsidiary were fined a penalty of $579 million — the largest fine ever paid in an FCPA case.

via BusinessWorld Online Edition: Coming clean and the economics of bribery.

Canada joins APEC cross-border privacy enforcement initiative | Privacy News – PogoWasRight.org

Canada has been accepted as a participant in a new Asia-Pacific Economic Cooperation (APEC) mechanism for cross-border cooperation on data privacy enforcement.

The initiative – the APEC Cross-border Privacy Enforcement Arrangement – was developed to facilitate information sharing and cooperation between authorities responsible for data and consumer protection in the APEC region.

via Canada joins APEC cross-border privacy enforcement initiative | Privacy News – PogoWasRight.org.

SEC Announces New Cooperation Initiatives | Fox Rothschild – JDSupra

The Securities and Exchange Commission (SEC) recently announced new cooperation initiatives to strengthen its enforcement capabilities. The new initiatives have been described by the director of the Division of Enforcement as a “game-changer” for SEC enforcement activities. The initiatives establish incentives for companies and individuals to fully and truthfully cooperate with SEC investigations and enforcement actions. Many of the tools the SEC authorized for use by the Division of Enforcement are similar to those used by the Department of Justice in criminal investigations and prosecutions.

via SEC Announces New Cooperation Initiatives | Fox Rothschild – JDSupra.

Press Release: SEC Announces Initiative to Encourage Individuals and Companies to Cooperate and Assist in Investigations; 2010-6; Jan. 13, 2010

The Securities and Exchange Commission today announced a series of measures to further strengthen its enforcement program by encouraging greater cooperation from individuals and companies in the agency's investigations and enforcement actions.

The new initiative establishes incentives for individuals and companies to fully and truthfully cooperate and assist with SEC investigations and enforcement actions, and provides new tools to help investigators develop first-hand evidence to build the strongest possible cases. The cooperation initiative is expected to result in invaluable and early assistance in identifying the scope, participants, victims and ill-gotten gains associated with fraudulent schemes.

“This is a potential game-changer for the Division of Enforcement,” said Robert Khuzami, Director of the Division of Enforcement. “There is no substitute for the insiders' view into fraud and misconduct that only cooperating witnesses can provide. That type of evidence can expand our ability to conduct our investigations more swiftly, and to act quickly to file charges, freeze assets, and protect investors.”

[continued] Press Release: SEC Announces Initiative to Encourage Individuals and Companies to Cooperate and Assist in Investigations; 2010-6; Jan. 13, 2010.