Brown v. Tellermate: Cloud-based Data and E-discovery - Butler Snow

This action stems from a lawsuit filed by Robert and Christine Brown (the
“Browns”), in an employment discrimination matter.  The Browns alleged that
Tellermate terminated their employment based on their age and that their
job performance was comparable or superior to other Tellermate employees.
As part of their effort to prove this, the Browns sought production of
documents and reports from the “web-based application” (
used by Tellermate that tracked sales activities of its employees.

Tellermate (and its attorneys) objected to the production of information
held in the database stating that, “Tellermate does not
possess or control data maintained in the database… [and]
information inputted by the Browns ‘resides with’ and that
it was ‘’s ESI.’”  *Id.* at *5.  Despite this objection, the
evidence demonstrated that not only did Tellermate employees have access to
the information input into, but that the agreement between
Tellermate and obligated to make its system
available at all times and that acquired “no right, title or
interest…in or to [a user’s] Data.”  In its response to the objections of
Tellermate and its attorneys, the court held that not only did the ESI
maintained on the database belong to Tellermate,

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