When a litigation hold is received, management must take immediate and specific actions to preserve relevant records and information that may be needed for the litigation. This includes issuing a litigation hold notice to the relevant custodians (employees or others responsible for data), instructing them to preserve all potentially relevant documents and electronically stored information. Management must also notify IT and other departments to suspend any routine data destruction processes and ensure compliance with the hold. Key steps management should take upon receiving a litigation hold include:
- Identifying the scope of relevant information, custodians, and data locations.
- Issuing a written litigation hold notice detailing the nature of the dispute, types of records to preserve, time frames, and the obligation not to destroy relevant records.
- Requiring custodians to acknowledge receipt and understanding of the hold.
- Monitoring compliance and sending periodic reminders to custodians.
- Coordinating with IT, HR, and other departments to prevent data destruction and track employment changes that could affect data custody.
- Employing professional resources for data collection to ensure defensibility.
- Eventually releasing the hold once the litigation or matter is resolved.
Management’s responsibility is to ensure a legally defensible process that avoids evidence spoliation and potential sanctions, while also minimizing business disruption during the hold period.
