Tax Electronic Discovery

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Predictive Coding Sanctioned as an "Expedited and Efficient" Discovery Method by the United States Tax Court

The volume of electronically stored information (“ESI”) has exploded, often making discovery prohibitively expensive. Supporters of “predictive coding” champion it as a way to reduce significantly the cost of discovery....more

Technology-Assisted Review Is Not an “Unproven Technology”

During discovery in Dynamo Holdings Limited Partnership, Petitioner v. Commissioner of Internal Revenue, the IRS filed a motion to compel two taxpayers to produce two backup storage tapes, copies of the tapes, or their...more

Court Allows Use of Predictive Coding, but Says It Shouldn’t Have To (Texas)

Dynamo Holdings v. Comm’r, Nos. 2685-11, 8393-12, 2014 U.S. Tax Ct. LEXIS 40 (U.S. Tax Sept. 17, 2014). In this tax law case, the defendant requested the plaintiff produce two backup storage tapes. The plaintiff...more

Focus on Tax Controversy - Fall 2014

Supreme Court to Hear Tax Injunction Act Case - On August 20, 2013, in Direct Marketing Association v. Brohl, the U.S. Court of Appeals for the Tenth Circuit held that the federal Tax Injunction Act (TIA) prohibited...more

"Cost-Efficient Alternatives for Document Production Gaining Traction"

Tax controversies often involve voluminous document production and extensive privilege logs from multiple parties. The privilege issues can be complex and involve advice from multiple advisers potentially covering several...more

Legal Alert: The Tax Court Approves the Use of Predictive Coding

On September 17, the U.S. Tax Court, in Dynamo Holdings LP v. Commissioner, 143 T.C. No. 9 (Sept. 17, 2014), held that a taxpayer could use predictive coding, over the objection of the Internal Revenue Service (IRS), to...more

Tax Court Approves Use of Predictive Coding During ESI Discovery

On September 17, 2014, the U.S. Tax Court issued its first opinion regarding the discovery of electronically stored information (ESI). In Dynamo Holdings, Ltd. vs. Commissioner, 143 T.C. No. 9 (Sept. 17, 2014), the Tax Court...more

Court Affirms Taxation of Costs; Says Plaintiff Presents a “Bad Argument” (Wisconsin)

Wis. Res. Prot. Coun. v. Flambeau Mining Co., 2014 WL 3810884 (W.D. Wis. Aug. 1, 2014). In this environmental case, the plaintiff moved for review of the clerk’s ruling awarding costs to the defendant. In particular,...more

Focus on Tax Controversy and Litigation - May 2014

In this issue: - Tax Court Rejects Partnerships’ Claim of Attorney-Client Privilege and Orders Release of Opinion Letters - Litigation Heats Up in Section 1603 Cash Grant Program for Renewable Energy Projects...more

Taxing e-Discovery Costs: Amendments To The Florida Uniform Guidelines

On November 14, 2013, the Florida Supreme Court adopted amendments to the Uniform Guidelines on the Taxation of Costs that specifically allow a successful litigant to recover certain e-Discovery expenses. The amended...more

New Beginning Construction Guidance Notice 2013-60

Earlier this year, the Internal Revenue Service (the “IRS”) published Notice 2013-29, providing guidance on what it means to “begin construction” for purposes of the recent extension of the 2.3 cent-per-kilowatt-hour...more

Awarding e-Discovery Costs to Prevailing Party: Billing Descriptions Dictate What is Recoverable

E-discovery costs incurred by the prevailing party – easily running into the hundreds of thousands of dollars in complex commercial and IP litigations – may be compensable under 28 U.S.C. § 1920(4)....more

Top 5 Ediscovery Case Summaries – June 2013: Puerto Rico - Court Denies Taxation and Cost-Shifting of Ediscovery Costs

W Holding Co., Inc. v. Chartis Ins. Co. of Puerto Rico, 2013 WL 1352426 (D.P.R. Apr., 3, 2013). In this discovery dispute, the plaintiffs sought cost taxation of ediscovery costs under 28 U.S.C. § 1920 or cost-shifting...more

Top 5 Ediscovery Case Summaries – June 2013: 4th Circuit - Court Denies E. & J. Gallo Taxation Costs Spent Decanting ESI into...

Country Vintner of NC, LLC v. E. & J. Gallo Winery, Inc., No. 12-2074 (4th Cir. Apr. 29, 2013). In this case brought under the North Carolina Wine Distribution Agreements Act, the defendant submitted a bill of over...more

Top 5 Ediscovery Case Summaries – June 2013: Illinois - Race Tires America, Inc. Approach Adopted in Taxation Case

Phillips v. WellPoint, Inc., 2013 WL 2147560 (S.D. Ill. May 16, 2013). In this taxation dispute, the defendants submitted $83,642.83 in costs for recovery under U.S.C. § 1920(4), alleging that costs from two ediscovery...more

Nothing Goes Better with Race Tires than . . . Wine?! – Fourth Circuit Limits Taxable eDiscovery Costs

As we’ve discussed multiple times, the issue of what types of ediscovery costs are taxable under 28 U.S.C. § 1920 was first addressed by a federal appellate court last spring in Race Tires America, Inc. v. Hoosier Racing Tire...more

Top 5 Ediscovery Case Summaries – April 2013: Virginia - Insufficiently Detailed “Image Processing” Not Included in Taxable Costs

Taylor v. Mitre Corp., 2013 WL 588763 (E.D. Va. Feb. 13, 2013). Following a November 2012 order dismissing Family Medical Leave Act and Americans with Disabilities Act claims for the plaintiff’s “egregious spoliation” in...more

Shifting the Growing Costs of E-Discovery

Since the arrival of e-discovery in the mid-1990s, the cost of collecting, copying, reviewing, sorting, processing and producing electronically stored information (“ESI”) has grown exponentially. In 2007, for example,...more

IRS Collection Division Embraces E-Discovery in New Guidance

The Internal Revenue Service’s Director of Collection Policy recently released Memorandum SBSE-05-0912-075, revising prior guidance to IRS collection employees on their obligations to preserve electronic and paper documents...more

Record Highs and Lows in New Jersey’s Uncertain Solar Market

New Jersey’s solar market hit record highs on the development side in the face of record lows in Solar Renewable Energy Credit (SREC) prices during the first quarter of 2012. A record 685 solar projects were installed in...more

Recoverability of e-Discovery Costs in Federal Court: An Update

Last summer, we discussed the split of authority regarding the recoverability of e-discovery costs by a prevailing party in federal court under 28 U.S.C. § 1920. Generally, a court may award “[f]ees for exemplification and...more

Let's Be Reasonable: Recent Federal Circuit Actions Follow Trend Toward E-Discovery Reform

The U.S. Court of Appeals for the Federal Circuit recently held that expenses associated with a third-party electronic database service can constitute taxable costs. In re Ricoh Co., Ltd. Patent Litig., No. 2011-1199,...more

In re Aspartame: Be Careful What You Ask for — You May Have to Pay for It — District Court Affirms Clerk’s Broad Award of...

The costs of eDiscovery continue to be a critical concern of clients and their litigation counsel. Even with cost-shifting provisions in federal and state rules, substantial eDiscovery costs continue to fall heavily on...more

Aspartame Assessment Of E-Discovery Costs Largely Affirmed

Last August we posted about a notable clerk’s order in the Eastern District of Pennsylvania that taxed, as costs, several hundred thousand dollar’s worth of e-discovery expenses against the losing party in an antitrust...more

Transcending The Cloud - A Legal Guide to the Risks and Rewards of Cloud Computing

— TABLE OF CONTENTS — Reed Smith Cloud Computing Initiative ...1 Cloud Computing – The Key Risks and Rewards for Federal Government Contractors ...4 Pennies From Heaven – U.S. State Tax Implications Within Cloud...more

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