Most business owners are enjoying a prosperous 2016. But like any successful enterprise, a company cannot simply rest on its laurels. It has to keep innovating and competing in the marketplace. However, the successes of a business can be destroyed through a lawsuit. After all, defending a lawsuit can be just as expensive as being liable for the judgment attached to it. Further, the time spent in defending lawsuits can make it difficult for a business to maintain its trajectory of profitability.
Because of this, it is critical for businesses to have a litigation preparedness plan. This post will highlight a few things to be considered as you consider such a plan.
Document retention - Every business should have a standard document retention policy. Indeed, every document produced by the business does not need to be preserved. However, important core documents should be kept in a manner that will make them readily available to legal counsel.
Litigation hold procedures - Similarly, litigation a hold policy should be incorporated so that documents and electronic data that can reasonably be anticipated to lead to discoverable evidence can be preserved. Such a policy is critical for avoiding future penalties for mistakenly destroying evidence.
Availability of data custodians- Every business has its own language and way of doing things. But when defending a company, it is helpful to have data custodians available to communicate with the company's lawyers so that appropriate defenses can be advanced.
Continually revisions and updates - Litigation preparedness plans must be reviewed from time to time to make sure that they comply with the changing needs of litigation.