
Publication
Texas Business Court Insider
The legal landscape for complex commercial litigation has shifted with the establishment of the new Texas Business Court in September 2024.
Data security concerns have increased in the past several years, as hacking, corporate espionage and data breaches are on the rise around the globe. Third-party attacks are becoming not only more sophisticated but also larger in scale. Law firms, legal matters, litigation and produced data remain high-profile targets for cyber-attacks. As discussed in a previous article, producing parties remain vulnerable to the risk that even if they adequately protect data in their own systems, third parties may steal data from the requesting parties’ systems.
Parties and counsel who receive data in litigation have an obligation to take reasonable steps to protect that data. See The Sedona Principles, Third Edition: Best Practices, Recommendations & Principles for Addressing Electronic Document Production, 19 Sedona Conf. J. 1, 179 (2018); see also William LaRosa, Note, New Legal Problems, Old Legal Solutions: Bailment Theory As A Baseline Data Security Standard of Care Owed to Opponent’s Data In E-Discovery, 167 U. Pa. L. Rev. 1 (2019). Moreover, “[a] requesting party inherits the data privacy and protection obligations that come with the ESI it receives, including the responsibilities that arise from the loss of that information.” The Sedona Principles at 179, n. 147.
Thus, the question is not whether a receiving party has a duty to take reasonable steps to protect data, but what is reasonable and proportionate in the context of the matters. While a receiving party could attempt to address security concerns unilaterally without reaching an agreement with opposing parties, this is a risky strategy. First, they may not know the value of the data they are receiving and, therefore, not know whether their efforts to secure the data are sufficient. Second, reaching agreements with the opposing party in advance of production provides greater certainty as to what is reasonable and prevents the parties from imposing security standards after the fact. Third, and finally, producing parties may not be able to actually produce information without having certain data security and breach notice requirements in place.
Publication
The legal landscape for complex commercial litigation has shifted with the establishment of the new Texas Business Court in September 2024.
Publication
The tort of aiding and abetting common law fraud is often asserted when an advisor or consultant to a defendant is involved in a transaction in which plaintiff alleges the defendant committed fraud.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright US LLP 2025