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Legal Tech: As Bankruptcies Grow, E-Discovery Counsels' Work May Become More Challenging
Businesses reeling after multiple international stay-at-home mandates are finding themselves out of options and filing for bankruptcy. The situation has led some law firms to cash in on bankruptcy service, and made many cautiously optimistic that the bankruptcy practice will be in high-demand during the current recession.
If it comes to fruition, a boom in bankruptcy proceedings could impact e-discovery counsel's workload as well. "If you have an uptick in bankruptcies, especially corporate bankruptcies, you will have a correlated uptick in e-discovery expertise," says Shannon Capone Kirk, Ropes & Gray's e-discovery counsel. "I think that's a fair projection to make."
Kirk's projection is based on the growing amount of digital communications that occur across companies. "We have seen in recent years an increase in the volume and nature of electronic discovery in restructuring proceedings," says Christine Payne, a partner at e-discovery boutique Redgrave, which announced a restructuring discovery team last month. "Not every restructuring is going to have discovery but those that do, it moves very fast and the data types are becoming increasingly complex. Parties are more interested in text messages and we have to keep up."
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