Electronic Discovery Law

Posted at 9:39 AM on December 8, 2010 by K&L Gates

Court Enforces Agreement to Delete Defendants' Confidential Materials Despite Cost

Oxxford Info. Tech., Ltd. v. Novantas, LLC, 910 N.Y.S.2d 77 (N.Y. App. Div. 2010)

In this case, the parties stipulated to a Confidentiality Order requiring that business information exchanged during the course of discovery would be returned or destroyed at the end of litigation. Relying on the agreement, defendants provided access to “their core business secrets.” When the case settled, plaintiff’s counsel discovered that defendants’ information had been backed up to “numerous back-up tapes” on their law firm’s computer system. Plaintiff then sought to modify the confidentiality agreement to allow the firm to retain the information “subject to proposed safeguards designed to protect the confidentiality of the information” in light of the cost of deleting the information from the tapes. The motion was denied and plaintiff appealed.

On appeal, the court found that “such cost does not outweigh defendants’ bargained-for interest in the post-litigation destruction of its business information in outsider’s hands, or otherwise warrant the proposed modification” and reasoned that “[p]laintiff voluntarily consented to the Confidentiality Order” and that “its counsel, who have demonstrated experience in and sophisticated knowledge of electronic discovery matters, should have foreseen the problem and addressed it” when the agreement was negotiated. Accordingly, the denial of plainitff's motion was unanimously affirmed.

Trackbacks (0) Links to blogs that reference this article Trackback URL
http://www.ediscoverylaw.com/admin/trackback/232243

Comments (0) Read through and enter the discussion with the form at the end

This blog/Web site is made available by the contributing lawyers or law firm publisher solely for educational purposes to provide general information about general legal principles and not to provide specific legal advice applicable to any particular circumstance. By using this blog/Web site, you understand that there is no attorney client relationship intended or formed between you and the blog/Web site publisher or any contributing lawyer. The blog/Web site should not be used as a substitute for competent legal advice from a lawyer you have retained and who has agreed to represent you.

K&L Gates includes lawyers practicing out of more than 40 fully integrated offices located in North America, Europe, Asia, South America, and the Middle East, and represents numerous GLOBAL 500, FORTUNE 100, and FTSE 100 corporations, in addition to growth and middle market companies, entrepreneurs, capital market participants and public sector entities. For more information about K&L Gates or its locations and registrations, visit www.klgates.com.

Portions of this Web site may contain Attorney Advertising under the rules of some states. Prior results do not guarantee a similar outcome.

e-Discovery Analysis & Technology group at K&L Gates, offering services related to ediscovery, review of electronic documents, electronic discovery and electronic evidence discovery.
K&L Gates LLP
925 Fourth Avenue, Suite 2900, Seattle, Washington 98104-1158
p. 206.623.7580, f. 206.623.7022