battling the e-discovery cost crisis with per document...

Battling the E-Discovery Cost Crisis with Per Document Pricing

Steve Harber, DiscoverReadyMike Kinnaman, Attenex

FEBRUARY 26, 2008

Agenda

Introduction of speakers

Present E-Discovery Landscape and Traditional Pricing Model• Law firm billing• Volume of data• Linear review

Future of E-Discovery and the Per Document Pricing Model• Reducing the Amount of Data to be Reviewed• Alternatives to the Hourly Attorney Review Rate• Dramatically Improving the Document Decisions Rate

Getting Started

Q&A

2

Presenters

Steven Harber, co-founder of DiscoverReady LLC

Steve has been active in the field of litigation support as a paralegal, attorney, application developer, services vendor and consultant since 1991.

Steve received his law degree from New York Law School and his bachelor of arts degree from Bucknell University. He is admitted to the Bar of the State of New York, as well as the U.S. District Courts, Southern and Eastern Districts of New York.

Mike Kinnaman, VP of marketing for Attenex

Mike oversees the company’s business development and marketing efforts and is an active participant in e-discovery industry groups including the Sedona Conference Vendor Council and the Electronic Data Reference Model (EDRM) project.

Mike graduated from the University of Kansas with a bachelor of science in journalism.

3

Present E-Discovery Landscape and Traditional Pricing Model

4

Corporation

Law firm

Traditional E-Discovery Model

Traditional E-Discovery Pricing

“The largest addressable cost in e-discovery is the cost of legal professionals who review data.”

Barry Murphy, Forrester Believe It – eDiscovery Technology Spending to Top $4.8 Billion by 2011, December 11, 2006

Review = 70% - 80% of total e-discovery costs

6


Traditional billing Often no transparency or breakout of fees, which can include:

• Law firm rates (hourly)• Contract attorney rates

(hourly)• Processing fees (per GB)• Technology or conversion

fees (per GB, page, etc.)• Hosting fees (per

user/GB/month)• Project management fees

(hourly)7

E-Discovery Services…

$974,352$974,352

Acme Corp.


Today: “Storing 1 GB of electronic information costs you

only $1. Having a junior attorney review it will cost you $30,000.”

- “Best Practices for E-Discovery” white paper, KM World, February 2008

Tomorrow:“EDD custodial data volumes (will) swell by three

orders of magnitude… It'll cost less to store a terabyte of data than to buy a tank of gasoline.”

- “Gazing into the EDD Crystal Ball” by Craig Ball, Law Technology News, February 4, 2008

8

Using Linear Review Tools: 30-50 documents per hour


22,572 emails= = 12 reviewers1 GB

9

= 5 days

Future of E-Discovery and the Per Document Pricing Model

10

Per Document Pricing Model for Review

Old Model• Billing: hourly attorney

review rate

• Volume: collect and process everything

• Review tools: linear tools and 30-50 document decisions per hour

New Model• Billing: flat fee per

document reviewed

• Volume: strategic processing and first pass review to reduce the volume of documents

• Review tools: visual analytics tools with averages of 150 document decisions per hour

11


Alternatives/considerations to the hourly billing model:

• Per document billing model versus per hour billing model, often incorporating:

• First pass review attorneys• Offshore attorney review

12


Reducing the amount of data to be reviewed:

• Collection • Processing

• Often reduces data set by 75%

• First pass review• Responsive/not important• Responsive• Important• Privileged• Needs further review• Technical issue• Not responsive

13


14

Linear Review Tools30-50 document decisions per hour

Visual Analytics150+ document decisions per hour

Review documents one by oneSimple sorting (e.g. date, subject line)

Keyword searches return lists Marking, tagging and annotating

Review groups of related documentsDocuments mapped into groups based on

document similarity – review in contextExplore communication threads

Leverage document content to identify documents with similar themes

Easy to identify similar documents – even when keywords are not present…plus linear review capabilities

Using Linear Review Tools: 30-50 documents per hour

Accelerating Review

22,572 emails= = 12 reviewers1 GB

15

= 5 days

Using Advanced Review Tools: 150+ documents per hour

6 3Download case studies at http://www.attenex.com/news_and_events/white_papers_and_case_studies.aspx

Good Questions to Get Started

• What is the exact plan or process?

• Which tools will be used?

• How will quality control be managed?

• Is the review scalable?

• What will I pay on a cost per document basis?

• How much will my company’s review cost?

16

Attenex Cost Per Document Calculator

http://www.attenex.com/portals/0/demo/attenex_calculator_v1.0.1.html

17

Assessment

18

Metric DescriptionType of case IP, Investigation, Regulatory, Second Request, etc.

Timeline How much time do you have to collect, process, review, and produce?

Total amount of ESI collected Generally measured in MB, GB or TB

Total amount of ESI eliminated from collection This refers to the amount of ESI eliminated through keyword or date filtering and/or de-duplication.

Total number of documents reviewed These are files that were left after filtering and de-duplication processes were complete.

Total number of documents produced This number should include documents produced with redactions.

Total number of documents withheld for privilege To determine a metric for percent of privileged information in your data set.

Estimate of cost for these processes Combination of vendor invoices and outside counsel hourly rates for review.

Total production cost The cost to put the ESI into the format required by the matter. This may include TIFF charges (conversion of native to image format), printing, time spent creating the production set (if producing natively) and the media used to produce the documents.

Q&A

19

Additional Resources

Attenex/DiscoverReadyFixed Per Document Pricing CLE Symposium

• April 23, 2008• Plaza Athénée, 64th & Madison, New York, New York• For more information, please contact Michelle Nichols of

DiscoverReady at [email protected]

For a list of future Attenex Web seminars, visit:http://www.attenex.com/newsEvents/events/

Learn more about Attenex and e-discovery best practices:

Visit www.attenex.comEmail [email protected]

Call (206) 373-6565 20