When litigation is anticipated, the preservation of evidence related to the dispute is crucial. This was highlighted in a recent legal dispute involving actor and director Justin Baldoni, whose legal team issued a formal litigation hold to The Walt Disney Company. The notice most likely instructed Disney to preserve all documents, communications and electronically stored information related to the dispute. This case offers a timely example of what a litigation hold is and why it plays a key role in the legal process.
What is a Litigation Hold and How Does it Work?
A litigation hold, also referred to as a legal hold or document hold, is a formal notice sent to an individual or organization to preserve all information, both electronic and physical, that may be relevant to an anticipated or pending lawsuit. This can include emails, texts, documents, videos, letters, and other relevant materials, whether digital or tangible. A litigation hold’s purpose is to prevent the destruction or alteration of key evidence, whether intentional or accidental, during the course of litigation.
Litigation holds are typically issued by an attorney at the beginning of a dispute or as soon as litigation is reasonably anticipated. The process usually involves identifying key parties, notifying them of their obligation to preserve relevant information, and providing clear instructions on what must be retained. Ongoing monitoring by the parties involved in the dispute is essential to ensure compliance throughout the process, and the litigation hold remains in effect until the matter is resolved and the duty to preserve no longer applies.
Why Litigation Holds Matter and the Risks of Noncompliance
Litigation holds play a critical role in maintaining the integrity of the legal process and the preservation of evidence. In cases like Baldoni’s, it ensures that all relevant information is available for both sides to present their cases and positions fairly. For companies like Disney, it also means triggering internal protocols to freeze data deletion or archiving routines that would otherwise result in accidental evidence loss.
Failure to comply with a litigation hold can have serious legal consequences. Courts have broad authority to address the destruction, alteration, or failure to preserve relevant evidence. Courts may impose sanctions, prevent parties from introducing certain evidence, or even instruct a jury to presume that missing information is unfavorable to the party responsible for its loss. For these reasons, it is essential to comply fully and promptly with litigation holds, as the proper preservation of evidence helps limit the risk of costly sanctions and protects a party’s credibility throughout the legal process.
Conclusion
The litigation hold is an important element of the litigation process as it ensures the preservation of evidence. If you have received a litigation hold notice or need guidance on issuing one, consider speaking with a member of our team for the next steps.
Contributions to this blog by Lisann Ricketts.
