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Legally speaking
1 Apr, 2008 By: Kenneth D. Morris Landscape ManagementQ. What business documents must I retain on file? And for how long?
A. Time and space does not allow a full answer here, but suffice it to say that records management is crucial. Not only does proper record management ensure the business keeps the necessary documents for the required time periods, but also because it will establish a procedure for proper destruction of documents and safeguards for preservation of documents in the event you reasonably anticipate a claim or lawsuit. Everyone has read about businesses or executives who are charged with obstruction of justice or other charges related to premature destruction of records in the face of imminent or existing claims or litigation.
While your reaction to such events may be to keep all documents (including electronic records) "just in case," you need to appreciate there is a cost associated with storing documents and electronic records long past the time when they need to be preserved. You will pay for extra physical space for hard copies, as well as incurring the cost for extra electronic storage capacity.
If you have a record retention program in place that provides for the periodic and routine destruction of documents and records, which is done in the ordinary course of business operations, the key then becomes having a solid procedure established for placing "holds" on the destruction of records when you reasonably can anticipate claims or lawsuits arising. Thus, a records retention program is just as much about policies and procedures as it is about setting out the various time periods necessary for retention of specific documents and records. After all, different types of documents require retention for different periods, depending on state and/or federal regulations, as well as business practice and custom.
Kenneth D. Morris, a Philadelphia-based attorney with more than 30 years corporate and law firm experience, offers information on industry legal issues in each issue of LM. Contact him via www.kenmorrislaw.com.
Note:
The above should not be interpreted as offering legal advice in any jurisdiction where such practice is not authorized. Engage competent counsel familiar with your jurisdiction when legal issues arise.
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