Relationship Between the Work Product Doctrine and the Duty to Preserve

Siani v. State Univ. of New York, 2010 WL 3170664 (E.D.N.Y. Aug. 10, 2010)

The duty to preserve electronically stored information (ESI) can arise long before a lawsuit is ever filed. Several of our prior posts, such as the ones found here and here, chronicle the problem of determining whether a pre-suit duty to preserve is triggered by a letter from a putative plaintiff which contemplates the possibility of litigation. So, any decision which recognizes a landmark that can be readily followed when navigating the pre-suit preservation minefield bears highlighting. Sinai provides such a beacon to follow.

The work-product doctrine encompasses documents that are prepared “in anticipation of litigation.” Siani reached “the common sense conclusion” that if litigation was reasonably foreseeable for one purpose, “it was reasonably foreseeable for all purposes.” 2010 WL 3170664 at *5. Thus, Siani recognizes a direct relationship between the assertion of the work-product doctrine and a duty to preserve ESI in a pre-suit context.

Thus, before asserting the protection of the work-product doctrine, an attorney would be wise to also confirm that the client has instituted a litigation hold to preserve potentially relevant ESI in the context of that anticipated litigation. Claiming the protection of the work-product doctrine means that litigation was reasonably anticipated and that a duty to preserve potentially relevant ESI has been triggered.

Seventh Circuit’s Electronic Discovery Pilot Program

Recently, the Seventh Circuit announced its Electronic Discovery Pilot Program. The program was developed in response to continuing comments by the business community and practicing attorneys about the need to reform the civil pretrial discovery process. It is an attempt to reduce the cost and burden of ediscovery in litigation. What makes the Seventh Circuit’s pilot program unique is that its results will be reviewed and analyzed during the program’s phases.

A series of Principles Relating to the Discovery of Electronically Stored Information (“ESI”) were developed and codified in a standing order. These principles are intended to serve as supplemental procedural ediscovery guidelines for the parties in selected cases. Individual district court, magistrate, and bankruptcy judges in the Seventh Circuit have agreed to adopt the principles and implement them in selected cases during Phase I of the program, which runs through May 1, 2010.

Kenneth J. Winters, the Managing Director of the Sedona Conference®, and former Colorado Supreme Court Judge Rebecca Kourlis, the Executive Director of the Institute for Advancement of the American Legal System (“IAALS”) at the University of Denver, assisted in the development and review of these principles.

IAALS is developing questionnaires to assess the efficacy of the principles. The questionnaires will be completed by the judges and lawyers participating in Phase I of the program. The results of the IAALS’ questionnaires will be presented to the Seventh Circuit at its annual meeting in May, 2010. At that time, the program’s ediscovery principles will be reviewed and refined as needed. Phase II of the program is scheduled to proceed from June, 2010 through May, 2011. It is contemplated that in May, 2011, Phase II findings will be presented and the Seventh Circuit’s final ediscovery principles announced.

Among other things, the principles require in the event of a dispute during the meet and confer process, the appointment of an ediscovery liaison who should be prepared to participate in ediscovery dispute resolution. These principles also recognize that that Rule 26(b)(2)(C)’s proportionality principles should be applied when formulating a discovery plan; provide that sanctions can be imposed for the failure to cooperate and participate in good faith in the meet and confer process; identify categories of ESI, which are generally not discoverable in most cases; and provides that if a party intends to request the preservation or production of these categories of ESI, that such a request be discussed at the parties’ initial meet and confer session or as soon thereafter as practicable.

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Email cc’d to non-lawyer forfeited attorney-client privilege, but work product doctrine saved the day

Schanfield v. Sojitz Corp. of America, 2009 WL 577659 (S.D.N.Y. March 6, 2009).

Sojitz Corporation fired its employee Schanfield. Six months later, Schanfield sued for wrongful termination. As many litigants do prior to filing suit, Schanfield sought the advice – via email – of two attorneys in his family. These communications discussed the facts of the case, underlying strategy, and thoughts on retaining counsel. Schanfield copied his non-lawyer sister on these messages.

Schanfield withheld these emails from production. Sojits moved to compel. Schanfield argued that the messages were protected by the attorney-client privilege because they were “confidential and explicitly for the purpose of procuring legal advice about his claims in [the] litigation and the retention of counsel.”

The court found that by copying his non-lawyer sister on these communications, Schanfield forfeited the attorney-client privilege. However, the court also found that the emails were protected by the work product doctrine. The messages were “clearly prepared in anticipation of litigation,” and by sending them to his close relatives, Schanfield did not significantly increase the likelihood that Sojitz would obtain the information. Absent a showing of substantial need for the messages, the court denied Sojitz’s motion to compel.

The obvious lesson to be learned from the case is that one must use discretion in deciding who to copy on email messages. Lawyers are expected to understand the contours of the attorney-client privilege and avoid unnecessary cc-ing. But prudent counsel will instruct and remind his or her clients of how easy the protection of the attorney-client privilege can be destroyed, as this case demonstrates. This is an issue which should be included in any corporate email risk management training or program.