FINRA Task Force to Tackle E-Discovery in Arbitration

http://ow.ly/67pkG

Article by Bob Ambrogi appearing on Catalyst Secure's website.  Catalyst is a strategic partner of SRM Legal, and provides secure web hosting services with advanced data analytics for attorney review.

This article touches on the recent announcement that FINRA will be establishing a task force to discuss discovery issues during arbitration.  The article makes several interesting points.  Revised duidelines for security arbitration were already approved by the SEC earlier this year, however the guidelines still fail to address eDiscovery in any specific way.

The author of this article, a top eDiscovery expert, includes a link to an article by Irene C. Warshauer, and provides a recap of points from her article as follows:
 "The procedures Ms. Warshauer outline closely parallel e-discovery practice in the federal courts. Among her key points:

• Once a party becomes aware that a claim is reasonably anticipated, it has a duty to institute a litigation hold in order preserve related documents and email.


• Parties and their counsel should consult on preservation of evidence early in the case. Counsel should meet to discuss discovery, including e-discovery, shortly after the case is filed.


• Parties should test search terms and time frames to ensure that they are generating the correct responses.


• Parties should product electronic information in a manner that is generally more convenient and less expensive for all parties.


• The concept of proportionality is important in arbitration. E-discovery and its costs should be reasonably proportional to the amount at stake.


• Discovery abuse in arbitration should be addressed using many of the same standards that have evolved in the federal courts.


• Arbitrators have authority under FINRA rules to impose sanctions for discovery violations."