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Home»Legal & Policy»Cannabis Litigation: The Importance of Litigation Holds
Legal & Policy

Cannabis Litigation: The Importance of Litigation Holds

February 10, 2023Updated:February 10, 2023No Comments4 Mins Read
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We frequently cowl litigation on the weblog, however at the moment we’re going to cowl put together for hashish litigation that will or might not come. And whereas it’s all the time vital to have efficient techniques in place, it turns into much more paramount when our purchasers understand how concerned the invention course of is within the American litigation system. If carried out correctly, a correct litigation maintain can save lots of expense and headache down the road – for our purchasers and for us.

Table of Contents

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  • What’s a litigation maintain?
  • Easy methods to implement litigation maintain
    • Conclusion

What’s a litigation maintain?

When a lawsuit is filed or – is even fairly anticipated – the principles of civil process in each federal and state courts impose a burden to protect all doubtlessly related data and knowledge. For instance, Federal Rule of Civil Process (“FRCP”) 37(e) supplies:

“(e) Failure to Protect Electronically Saved Data. If electronically saved data that ought to have been preserved within the anticipation or conduct of litigation is misplaced as a result of a celebration didn’t take cheap steps to protect it, and it can’t be restored or changed by further discovery, the courtroom:

(1) upon discovering prejudice to a different occasion from lack of the knowledge, might order measures no larger than essential to treatment the bias; or

(2) solely upon discovering that the occasion acted with the intent to deprive one other occasion of the knowledge’s use within the litigation might:

(A) presume that the misplaced data was unfavorable to the occasion;

(B) instruct the jury that it might or should presume the knowledge was unfavorable to the occasion; or

(C) dismiss the motion or enter a default judgment.”

Primarily, the litigation maintain places everybody and their key custodians of paperwork and data on discover {that a} sure scope of knowledge should be preserved (and later, compiled and produced within the discovery course of). And as FRCP 37(e) makes clear, if that isn’t performed correctly (or worse, if it isn’t performed deliberately), there will be extreme penalties: these embrace dismissal (for those who’re the plaintiff) or a default judgment (for those who’re the defendant).

Easy methods to implement litigation maintain

First, it’s vital to determine the scope or universe of what must be preserved in any burgeoning hashish enterprise dispute. Assume past the precise dispute/situation or claims/defenses. What could also be deemed “related” will be extraordinarily broad within the discovery context.

Second, determine and implement protocols for all the things that will maintain these data. Whereas this beforehand meant file cupboards of papers, it now usually means emails, paperwork, spreadsheets, and so forth. However, don’t cease there: is there firm software program folks collaborate or communication on? Are staff given firm telephones? It’s vital to assume past emails and paperwork as a result of most probably, discovery goes to require all of it.

Lastly, observe up frequently to make sure all staff are sticking to the litigation maintain so long as mandatory. It generally is smart to assign oversight to key people who can test that the techniques are engaged on a quarterly or annual foundation.

Conclusion

Litigation holds will be tedious processes so it’s finest to sort out this head on. Usually, nothing causes extra delay and stress in a lawsuit than a consumer that doesn’t have a deal with on its proof – whether or not it’s proof it ought to have however doesn’t, or proof that it finds piece by piece over an prolonged time frame as a result of the consumer or the knowledge is disorganized.

And for our proactive readers, it’s by no means too early to develop a basic plan that may guarantee a litigation maintain will be successfully ready sooner or later. Figuring out the place knowledge is saved in energetic techniques, ensuring backups are frequently produced, and creating exit checklists for when staff depart an organization can guarantee all related knowledge are preserved and accessible.

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