Not preserving data properly can cost you

* In the case of Bank of America vs. SR International Business Insurance, it was estimated that the cost to produce e-mails from 350 to 400 backup tapes would be anywhere from $3,750 to $4,300 per tape.

* In the case of Leon vs. IDX Systems Corporation, the plaintiff deleted 2,200 files from the laptop computer his employer had issued to him. The court dismissed the case and awarded the defendant $65,000 for the spoliation.

* Prudential Insurance Company of America was fined $1 million because it destroyed records during a legal action involving its sales practices.

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* In the case of Bank of America vs. SR International Business Insurance, it was estimated that the cost to produce e-mails from 350 to 400 backup tapes would be anywhere from $3,750 to $4,300 per tape.

* In the case of Leon vs. IDX Systems Corporation, the plaintiff deleted 2,200 files from the laptop computer his employer had issued to him. The court dismissed the case and awarded the defendant $65,000 for the spoliation.

* Prudential Insurance Company of America was fined $1 million because it destroyed records during a legal action involving its sales practices.

These are just a few examples of the pain that can be imposed on companies if they don’t properly archive or protect content prior to and during legal actions. While some decision makers continue to believe that destroying all older e-mail or electronic documents is the wisest course of action, it’s important to understand that such a position is not borne out by the facts. 

The argument for destroying evidence is based on the mistaken notion that deleting e-mail or other electronic content actually destroys e-mail or other electronic content. However, consider the e-mail you sent just before reading this article: one copy is probably stored in your Sent Items folder, there’s a copy in the recipient’s Inbox, later tonight there will be a copy on the recipient’s backup system, and there might already be a copy in the recipient’s archiving system. Plus, consider that the recipient might forward your e-mail to someone else, download a copy to his or her laptop, download a copy to his or her home computer, etc.

We will be hosting a Webinar on e-discovery issues in the news on April 16 where we will discuss e-discovery horror stories, best practices in e-discovery and the perspective of three vendors who offer solutions designed to assist in discovery efforts (FaceTime, ArcMail Technology and Quest Software). To participate with us in this no-charge event, you can sign up here.

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