Electronic Records

In <i>Arthur Andersen LLP v. United States</i>, 125 S. Ct. 2129, 235 (2005), the Supreme Court acknowledged the importance of records management policies that provide for the routine destruction of unneeded records under ordinary circumstances. It is, however, common knowledge that such policies should ordinarily be suspended once an investigation or litigation is reasonably anticipated. This is normally accomplished through the imposition of a 'litigation hold,' the process of notifying employees of their obligations to preserve all potentially relevant records while continuing the routine destruction of non-relevant active and archived data. This may be a company's first line of defense against claims of spoliation or obstruction. The failure to suspend routine purges of records in the face of litigation has contributed to the imposition of sanctions as high as $1.45 billion on companies.

18 minute read February 27, 2007 at 08:46 AM
By
David F. Axelrod and John A. Walker
Electronic Records

In Arthur Andersen LLP v. United States, 125 S. Ct. 2129, 235 (2005), the Supreme Court acknowledged the importance of records management policies that provide for the routine destruction of unneeded records under ordinary circumstances.

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