Nelson Mullins Encompass


Understanding E-Discovery Cost Drivers and Levers to Adjust

April 24, 2014

For the Defense

Reprinted with permission of Defense Research Institute.

In today’s business environment, legal costs are under a microscope. For companies on the receiving end of litigation, understanding the key cost drivers can help in-house counsel strike the right balance in setting relationships with external legal counsel, and in setting overall case strategy.  

The discovery phase alone can represent more than 50 percent of total litigation costs. These costs are driven up by the sheer volume of a company’s electronic data, and also by the strategies—or lack thereof—implemented by in-house and external legal counsel to accomplish the preservation, collection, review, and production of documents. Below are insights on some of the more significant cost drivers in e-discovery, and the levers counsel can adjust to save on the bottom line.