Northern District of Indiana Approves Keyword Culling Prior to Predictive Coding; Can Skynet, LLP Be Far Behind?

Recently, Judge Miller in the Northern District of Indiana approved the use of predictive coding in a large, multidistrict litigation concerning certain hip implants manufactured by Biomet.

As the order notes, Biomet started with a universe of about 19.5 million documents and used keyword culling to trim that down to 3.9 million documents (about 1.5 terabytes of data). Taking out the duplicates brought that down to 2.5 million. Using statistical sampling, Biomet had a 99% confidence rate that .55% to 1.33% of the unselected documents would be responsive, and that 1.37% to 2.47% of the original 19.5 million were responsive.

Biomet then applied predictive coding to the remaining 2.5 million documents. The court described predictive coding this way:

Predictive coding has found many uses on the Internet. Under predictive coding, the software “learns” a user’s preferences or goals; as it learns, the software identifies with greater accuracy just which items the user wants, whether it be a song, a product, or a search topic. Biomet used a predictive coding service called Axelerate and eight contract attorneys to review a sampling of the 2.5 million documents. After one round of “find more like this” interaction between the attorneys and the software, the contract attorneys (together with other software recommended by Biomet’s e-discovery vendor) reviewed documents for relevancy, confidentiality, and privilege.

As of the date of the order, Biomet had incurred $1.07 million in e-discovery costs and was expected to incur up to $3.25 million. (Vendors:  “Cha-ching!”)

Biomet asked the Plaintiffs’ Steering Committee to suggest additional search terms, but they declined because they felt that the initial keyword culling used tainted the entire process. Instead, the Committee wanted Biomet to start over and use predictive coding on the original 19.5 million document universe. Biomet objected, claiming that would result in millions more in e-discovery costs.

Judge Miller approved Biomet’s e-discovery procedures, stating:

The issue before me today isn’t whether predictive coding is a better way of doing things than keyword searching prior to predictive coding. I must decide whether Biomet’s procedure satisfies its discovery obligations and, if so, whether it must also do what the Steering Committee seeks. What Biomet has done complies fully with the requirements of Federal Rules of Civil Procedure 26(b) and 34(b)(2). I don’t see anything inconsistent with the Seventh Circuit Principles Relating to the Discovery of Electronically Stored Information. Principle 1.02 requires cooperation, but I don’t read it as requiring counsel from both sides to sit in adjoining seats while rummaging through millions of files that haven’t been reviewed for confidentiality or privilege.

Further:

It might well be that predictive coding, instead of a keyword search, at Stage Two of the process would unearth additional relevant documents. But it would cost Biomet a million, or millions, of dollars to test the Steering Committee’s theory that predictive coding would produce a significantly greater number of relevant documents. Even in light of the needs of the hundreds of plaintiffs in this case, the very large amount in controversy, the parties’ resources, the importance of the issues at stake, and the importance of this discovery in resolving the issues, I can’t find that the likely benefits of the discovery proposed by the Steering Committee equals or outweighs its additional burden on, and additional expense to, Biomet.

A couple of takeaways:  First, keyword culling prior to the application of predictive coding is an acceptable e-discovery practice in Indiana federal courts.

Second, and more ominous, lawyers are actively and willingly helping machines learn how to replace them. I watched a lot of sci-fi movies as a younger man, and there’s only one way for this movie to end, and it’s not good. One day, you’re at your desk reviewing documents, and the next thing you know, there’s a flash of brilliant white li…….

Well, at least there's no more document review...

Well, at least there’s no more document review…

About Brian Jones

I represent clients in all aspects of business litigation, but focus my practice on complex litigation and arbitration matters concerning insurance and reinsurance, antitrust, class actions, securities, real estate disputes, and contract matters. I am the co-chair of the Bose McKinney & Evans Insurance Group. I was listed in the 2017 and 2016 "Best Lawyers in America" for Insurance Coverage and named a "Rising Star" in Insurance Coverage by Super Lawyers in Indiana in 2014. I was also named a "Rising Star" in Business Litigation by Super Lawyers in Indiana in 2013 and 2012, and a 2010 “Rising Star” in Business Litigation in Texas. I am a member of the State Bars of Indiana and Texas, the Defense Research Institute, a former member of the Pro Bono College of the State Bar of Texas, and I am licensed to practice before all state courts in Indiana and Texas, as well as all federal courts in Indiana, the Northern, Western, and Southern Districts of Texas, the Northern District of Illinois, and the United States Courts of Appeals for the Fifth, Seventh, and Eleventh Circuits. I received my bachelor’s degree, cum laude, in political science and my master’s degree in teaching from Trinity University, where I was elected to Phi Beta Kappa. I received my doctor of jurisprudence degree from the University of Texas School of Law, where I was the Director of Communications for the Legal Research Board and a member of the Phi Delta Phi Honor Society. Before attending law school, I taught high school geography, government and economics in San Antonio, Texas.
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