December 2006

By Kenneth L. Stein and Richard H. An

Many companies have document retention policies in which paper and electronic documents are discarded or deleted after specified time periods, depending on the content and type of document. Those policies serve to keep sensitive information from getting into the hands of others, as well as to control the amount of physical and digital memory space needed to store documents. See Arthur Andersen LLP v. United States, 544 U.S. 696, 704 (2005). Some companies, for example, automatically delete e-mails older than 3 months, unless specifically saved by an employee. See Hynix Semiconductor, Inc. v. Rambus, Inc., No. C-00-20905 RMW, 2006 WL 565893, at *11 (N.D. Cal. 2006). Courts, including the U.S. Supreme Court, have recognized that there is nothing wrong with such policies, even where they might result in the destruction of documents that might be material in a later lawsuit, as long as that lawsuit was not reasonably foreseen at the time the documents were destroyed. See Arthur Andersen, 544 U.S. at 704 (“It is, of course, not wrongful for a manager to instruct his employees to comply with a valid document retention policy under ordinary circumstances.”); Samsung Elecs. Co. v. Rambus, Inc., 439 F. Supp. 2d 524, 543 (E.D. Va. 2006) (citing Arthur Andersen).

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