Court Finds $834,285 to Process ESI Extravagant, Issues Sanctions

In a must read decision for attorneys, consultants and ediscovery vendors, the Court in a well-written opinion chastised and awarded attorney fees and costs against the defendant whose IT representative "exaggerated" the cost of processing ESI.

Starbucks Corp. v. ADT Sec. Servs.,2009 U.S. Dist. LEXIS 120941 (W.D. Wash. Apr. 30, 2009).  In a breach of contract and fraud case, Starbuck's brought this action based on ADT's installation of  proprietary security systems in violation of the contact between the two parties.  After filing the action, Starbucks filed a motion to compel to obtain archived e-mails from the defendants. The Court discussed in detail ADT's archived e-mail systems involving the storage of e-mail from 2003 - 2006. ADT argued the system was was "so cumbersome, . . . that it is not 'reasonably accessible because of undue burden or cost.'"  ADT argued it was not accessible because of their selection of an archiving system that failed in its essential function of allowing ESI to be searched. . . . (read more).