The Legaltech News article, “As Bankruptcies Grow, E-Discovery Counsels' Work May Become More Challenging,” includes Christine Payne’s insights on eDiscovery and bankruptcy proceedings.  In the following excerpt, the head of Redgrave LLP’s Restructuring Discovery team outlines how bankruptcy proceedings often require quicker turnarounds and more challenging data handling procedures.

“We have seen in recent years an increase in the volume and nature of electronic discovery in restructuring proceedings,” said Christine Payne, a partner at e-discovery boutique Redgrave, which last week announced a restructuring discovery team. “Not every restructuring is going to have discovery but those that do, it moves very fast and the data types are becoming increasingly complex. Parties are more interested in text messages and we have to keep up.”

Suffice to say, the demands of collecting and reviewing all electronic data during a bankruptcy proceeding can be challenging.

“You have the accelerated pace for discovery in bankruptcy, [so] you have to have a good knowledge about the efficient technology and efficient workflows” Payne said.  While not all bankruptcies entail a quick turnaround for discovery, “often [there's] a need to resolve the issue as soon as possible so creditors can be paid and resolution can be had,” [Shannon Capone Kirk, Ropes & Gray’s e-discovery counsel] explained. 

E-discovery conducted during a bankruptcy proceeding can also include unique data collection and privacy demands.

During Chapter 7, for example, collecting computers from departing employees should include recovering encryption keys, because once people leave it may be difficult to access data, noted Littler Mendelson shareholder and national e-discovery counsel Paul Weiner.

While Chapter 7 liquidation places a stronger emphasis on collecting data, Payne noted that Chapter 11 restructuring typically entails obtaining C-suite communications and assessing messages. “Restructuring discovery is mostly done by agreements and parties are incentivized to produce comprehensively and quickly. If the merits counsel [is] negotiating on behalf of a debtor and agrees to give officer-level communication, you have to be able to jump on it.”

Read the full Legaltech News article here.

By Victoria Hudgins | Legaltech News