Critical Business Procedure - Keep All Email Communications
Below is a MRR and PLR article in category Reference Education -> subcategory Legal.
Critical Business Practice: Retain All Email Communications
Summary:
Many businesses diligently keep records of their correspondence and memos. Unfortunately, this practice often doesn't extend to email communications. However, emails are just as important as traditional paperwork, and retaining them is crucial to protect your business during potential litigation.Why Retain Email Communications?
While banks and broker-dealers must keep email and instant messaging records for three years according to U.S. Securities and Exchange Commission rules, as of July 2006, all public companies are obligated to do so under the Sarbanes-Oxley Act.
Regardless of these mandates, it's essential for your business to maintain email records. Emails can serve as evidence, and courts are increasingly scrutinizing businesses that fail to preserve them. A lack of email records can make it appear as though a business is hiding crucial information.
Legal Precedents:
In the Perelman v. Morgan Stanley case, Morgan Stanley's inability to produce email records was a key factor leading to a $1.45 billion verdict against them. Judge Elizabeth Maass issued a pretrial ruling suggesting Morgan Stanley had conspired to defraud Perelman, due to missing emails. They're not alone in this; in 2004, UBS was found to have deliberately destroyed email evidence in a discrimination lawsuit, resulting in a $29 million verdict.
Implementing an Email Policy:
To shield your business, establish a robust procedure for retaining all email communications. Not maintaining these records can lead to severe repercussions in court, including monetary penalties or automatic liability rulings.
However, retaining emails isn't without potential pitfalls. Occasionally, emails may contain harmful statements, creating a catch-22 situation.
To mitigate these risks, create a clear email policy and ensure all employees adhere to it. Employees should be aware that the business environment isn’t a place for jokes or casual remarks in emails.
By implementing a thorough and well-communicated email policy, your business can protect itself from legal vulnerabilities while maintaining professionalism in all communications.
You can find the original non-AI version of this article here: Critical Business Procedure - Keep All Email Communications.
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