
Robert E. Levy
Partner
201-896-7163 rlevy@sh-law.comFirm Insights
Author: Robert E. Levy
Date: November 25, 2014
Partner
201-896-7163 rlevy@sh-law.comTo help reign in the process, the Judicial Conference of the United States recently approved amendments to the Federal Rules of Civil Procedure. The proposed changes limit the scope of discovery and clarify the sanctions for failing to preserve electronic documents.
Amendments to Rule 26(b)(1) are intended to ensure that discovery is not more expansive than necessary by requiring that all requests be “proportional to the needs of the case.” Under the revised rule:
Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case considering the amount in controversy, the importance of the issues at stake in the action, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit.
Also of note, Rule 26(c)(1)(B) would be amended to include “the allocation of expenses” among the provisions that may be included in a protective order. The change is intended to give courts the explicit authority to require the requesting party to bear part or all of the costs of responding.
Changes are also likely coming to Rule 37(e), which governs the imposition of sanctions for failure to preserve discoverable information. The goal of the amendment is to establish greater uniformity in how federal courts respond to the loss of electronically stored information (ESI).
As noted in the rule proposal, “The lack of uniformity—some circuits hold that adverse inference jury instructions can be imposed for the negligent loss of ESI and others require a showing of bad faith—has resulted in a tendency to over preserve ESI out of a fear of serious sanctions if actions are viewed in hindsight as negligent.”
In response, Proposed Rule 37(e)(1) provides that the court must first find that the loss of information has prejudiced another party. It may then order measures “no greater than necessary to cure the prejudice.” The amended e-discovery rule also only authorizes adverse inference instructions [under which the jury can presume that the unavailable documents are unfavorable to that party] upon a finding that the party “acted with the intent to deprive another party of the information’s use in the litigation.”
The U.S. Supreme Court must still approve the proposed changes. Assuming the justices sign off and Congress does not intervene, the new rules would likely take effect on December 1, 2015. We are closely tracking the status of the new federal discovery rules and will provide updates as they become available.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!