Maintaining business records and complying with regulations such as Sarbanes Oxley (SOX) can keep your company clear of expensive legal trouble. Consider the following circumstance from a recent article on the subject by Randolph A. Khan, Esq.:
In a recent court case, Flour Daniel v.Murphy Oil USA Inc., a litigant was reminded about how seemingly innocuous records management failures can create big headaches. Because one of the parties did not have a written policy regarding e-mail retention and because the company failed to follow its own disaster recovery backup tape recycling schedule, it was confronted with the prospect of reviewing 19.7 million e-mail messages at a projected cost of $6.2 million. What was a simple problem that could have been easily and inexpensively addressed earlier became a large, expensive problem in the context of the lawsuit.