Implementing a strong, legally defensible litigation hold order is imperative when a company is faced with litigation. Recently a Manhattan judge made what is being called a “groundbreaking” ruling that resulted in sanctions against a company that failed to properly implement a litigation hold policy with their email communications.Waiting until litigation happens to implement a strong, defensible hold process is often too late and as seen in the Manhattan case, can result in sanctions. Additionally, it can be very costly for an unprepared company.

Counsel must take a proactive approach to litigation holds to mitigate the risks of improper or negligent litigation hold methods. In order to do this, counsel must understand their company’s IT policies and processes to properly enact hold orders for electronic information. Additionally they must have a strong and immediately enforceable process in place to enact a company-wide hold order on information and documentation that will stand up in a court of law.

Having a solid process in place long before the discovery of pending litigation is one of the best defenses a company has against unnecessary sanctions and costs.