The excessive amount of digital information that is being created and transmitted everyday within organizations has made handling and storage of data for e-discovery purposes a grave challenge. Due to its expensive nature, e-discovery has now become a cause of concern for both the affected parties and the federal courts as there is a constant tug-of-war as to which party should bear the electronic disclosure costs.

Per FRCP rules, preservation of ESI for civil litigation is mandatory as it is crucial evidence that can be requested by lawyers to substantiate claims attached to cases. The moment a company is issued a lawsuit notification, it becomes their legal obligation to preserve any kind of data until the outcome of the lawsuit is declared. Any company that is found to be negligent in preserving data or of intentional spoliation of evidence can be subject to legal sanctions that could cause immense damages to their case.

The burden of storing and maintaining massive ESI adds to costs. Thus the parties that perform the electronic discovery production are appealing to courts to apply the costs to the requesting parties. However, the courts consider several factors, such as the case requirements, the resources available to the parties, the level of controversy, the questionable issues and the significance of e-discovery proceedings before deciding whom to hold responsible for bearing the costs.
» Read more: Who Should Bear the Cost of E-Discovery?