Deloitte survey of inhouse legal counsels highlights cost concerns

19 June 2008: Over half of all respondents to Deloitte 's inaugural legal in-house counsel survey 2007/08 agree that the costs associated with complex discovery is a major factor in reducing recourse to action, according to Deloitte’s Dispute Consulting Partner, Chris Phillips and Forensic Technology Partner, Nicholas Adamo.

“Litigation trends have changed significantly in recent years,” says Mr Phillips. “In order to comply with rules of discovery these days, companies have to consider and undertake extensive discovery exercises. The same can be said for regulatory investigations.”

The research showed that there is a significant weight of concern about these costs, according to the 110 Australian in-house counsels who participated in the Deloitte survey.

“The costs associated with complex discovery can be significant, with a recent example being the potential HIH investigation discovery costs of $4 to $6 million cited in the media,” says Mr Phillips.

“Further, some respondents believe that such e-discovery costs are going to continue to escalate in value and incidence as the volume of litigation continues.”

The survey shows that the majority of all in-house counsel respondents (67.7%) agree or strongly agree that the management of electronic records is an increasingly important issue.

“Courts and the legal industry generally understand that the complexities of discovery are substantial, the procedures and method of storage of information is vital yet the correct tools and procedures are still in their infancy,” says Nicholas Adamo, Deloitte Forensic Technology Partner.

“Most of the market understands that a sense of reality needs to be maintained when it comes to these huge discovery expenses.”

“An efficient way forward is to reduce the potential universe of discoverable material early on, especially electronic material. This allows us to identify what is actually relevant and proceed from there,” says Mr Adamo.

Chris Phillips
Partner
Deloitte Forensic
Tel: +61 (0) 2 9322 7316

Nicholas Adamo
Partner
Deloitte Forensic
Tel:  +61 (0) 2 9322 3045