Bankruptcy Triggers For The Duty To Preserve Evidence

Law360, New York (August 4, 2015, 10:38 AM EDT) -- "Bankruptcy often breeds litigation,"[1] and litigation gives rise to a duty to preserve evidence. Much discussion centers on a litigator's duty to advise a client about its duty to preserve documents, including electronically stored information (ESI); yet, this sort of discussion remains largely absent from the field of bankruptcy. Despite this neglect, bankruptcy poses some of the more difficult document preservation quandaries that merit ample consideration. As Chief Justice John Roberts recently stated, "The rules are different in bankruptcy. A bankruptcy case involves an aggregation of individual controversies, many of which would exist as stand-alone lawsuits but for the bankrupt status of the debtor."[2] The interweaving of the bankruptcy case and the related individual controversies directly impacts the duty to preserve evidence....

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