This case highlights key issues in eDiscovery, particularly regarding the preservation of electronically stored information (ESI) and the designation of confidential materials during litigation. GG Insurance Services alleged that defendants erased a laptop containing relevant evidence before the lawsuit began, prompting a motion for spoliation sanctions. However, the court denied the motion, finding that defendants did not have a duty to preserve the laptop at the time it was wiped, as litigation was not reasonably foreseeable. The court emphasized that recognizing the possibility of litigation is insufficient to trigger a duty to preserve evidence. Additionally, the court noted that a backup of the laptop was produced during discovery, mitigating any potential prejudice to GG. This decision underscores the importance of clearly identifying potential claims and issuing litigation holds to ensure the preservation of relevant ESI. 

The case also involved disputes over discovery designations and responses. GG marked software development emails as “Confidential – For Counsel Only,” citing competitive harm if disclosed to Turbo, a direct competitor. The court upheld GG’s designation, finding it supported by a good faith belief that unrestricted disclosure would harm its business. However, GG was ordered to provide definitive answers to defendants’ interrogatories and requests for production (RFPs), as vague responses and reservations to supplement were deemed insufficient under Rule 26. This ruling highlights the need for parties in eDiscovery to provide clear, concrete responses and properly designate sensitive materials to balance transparency with protecting proprietary information.

If your organization is seeking support with eDiscovery, our team has solutions to address all phases of the discovery process. At CODISCOVR, we deliver client-focused, defensible, and scalable solutions using advanced technology and intelligent review practices to meet eDiscovery, document review, and information governance needs in a manner that reduces the risks and costs associated with electronically stored information (ESI). Reach out to Shari Coltoff at CODISCOVR for more information. Shari has over 20 years of experience in the ever-evolving eDiscovery life cycle, from document collection to managing large long-term reviews through productions.