E-discovery — a phrase certain to strike fear in the heart of any insurance company or claims professional! Yet, notwithstanding the fear factor, we have seen many clients and insurers (none of which, of course, were represented by us) ignore or pay scant attention to the litigation hold requirement. The company that does so, does so at its own peril as this recent district court opinion makes clear. The failure to properly impose a litigation hold and the resultant negligent destruction of records subjects the destroying party to sanctions and spoliation, i.e. an adverse inference charge. Strong medicine indeed.
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