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ARTICLE · 17 MARCH 2005

E-Discover Discovery and Records Management Update

Several recent court decisions demonstrate the severe sanctions companies face for destroying documents during litigation and underscore the need to implement and comply with litigation holds.

United StatesLitigation, Mediation & Arbitration
Bruce Radke, Esq.
Bruce Radke, Esq.
Timothy Carrol, Esq.
Timothy Carrol, Esq.

Several recent court decisions demonstrate the severe sanctions companies face for destroying documents during litigation and underscore the need to implement and comply with litigation holds. For example, in Zubulake v. UBS Warburg LLC, 2004 U.S. Dist. LEXIS 13574 (S.D.N.Y. July 20, 2004), the court ruled that a party must take affirmative steps to preserve documents, including: (1) issuing a litigation hold at the outset of the litigation or whenever litigation is reasonably anticipated such that all sources of discoverable information are identified and retained; (2) communicating the litigation hold directly to all key employees; (3) repeating the litigation hold instructions; (4) monitoring compliance with the litigation hold; and (5) instructing all employees to produce potentially relevant documents in their files. Id., at *39-41. See also United States v. Philip Morris USA Inc., 2004 U.S. Dist. LEXIS 13580 (D. D.C., July 21, 2004) (sanctioning defendant $2.75 million for

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