Liability Insurance Drives Information Management Plans, not eDiscovery or Monetary Sanctions

http://ow.ly/7qr6C

An article by Joshua L. Konkle appearing on the website DCIG.com

The article focuses on results from a survey taken by Symantec regarding eDiscovery practices within corporations. A link to the survey results is provided in the article.

As the author states, "On average most mid-sized companies are not bothering with Information Management as a means to mitigate e-discovery costs."

The article also states, "In December of 2010 Duke Law Journal, in conjunction with King and Spalding, LLP, published "Defining the problem of cost in civil litigation." The article detailed cases and associated monetary sanctions for over 77 known cases. DCIG reached out to the co-author of the article, Dan Wiloughby at King and Spalding, LLP, and his team requesting the median and mean values for monetary sanctions across the 77 cases.

The article lists all 77 cases and the monetary sanctions related to them. However, determining the mean and median requires some analysis. Rose J. Hunter Jones sent us the mean and median monetary sanctions from their research:

• Median: $40, 500.00
• Mean: $701,607.88"  The article provides a link to the referenced article, as well as links to other articles further mentioned in the article."  

The author further quotes, "Insurance companies provide coverage by managing their risk tolerance. They understand a minimum amount of Information Management will reduce insurance claims. Insurance companies can and do require Information Management plans and tools, e.g. contracts, etc.

As an insured's loss-ratio increases, expect insurance companies to increase their requirements for information management plans. Until then, expect the demand for Information Management in mid-sized companies to be driven by reactionary responses to eDiscovery requests as opposed to potential eDiscovery costs."