When Can a Business Shred its Documents? The Federal Court in Maryland Sanctions Two Companies for Pre-Litigation Spoliation of Evidence
When two consulting firms believed that documents containing confidential information were improperly within a high-level consultant’s possession, they authorized the destruction of the documents and terminated the consultant. The consultant sued the companies in Maryland Federal Court for terminating him without cause in breach of the parties’ contract. He also moved for sanctions against the companies, arguing that the companies had wrongfully destroyed evidence when litigation was reasonably foreseeable. The Court agreed to sanction the…