Stone Webster Inc .
When engaging a vendor or consultant it is worth thinking — at least in passing — about the risk of litigation and to what extent the company will be required to preserve and potentially produce documents in the hands of the third party.
It should come as no surprise that the Rule 34 analysis is a highly factual one, with a focus on the relationship between the company and the third party. Here are some indicia a court might consider.
The company must identify those custodians who are likely to have relevant information to ensure that their hard copy and electronic files are preserved.
E-discovery: GCs must consider the obligation to preserve electronic documents maintained by third parties
The court next found that the plaintiff had a culpable state of mind sufficient to enter sanctions because the plaintiff knew early on that litigation was likely, or at least anticipated.