California company destroyed documents, judge said

September 26th, 2012 | Posted by Kevin Corley in Business Process Automation

There are numerous reasons why a company would want to indulge in hosting an information management system electronically. Not only could doing so save businesses money by freeing up storage space in the office, but it could ensure that firms are compliant and saving relevant records. If regulations requiring digitization had been in place at a California office, a company may not be facing litigation for destroying files.

According to Courthouse News, California-based Rambus Incorporated sued the South Korean computer chip maker SK Hynix, claiming a patent violation, and won, claiming a restitution of $397 million. However, U.S. District Judge Ronald Whyte decided on September 21 that Rambus had shredded files relating to the case, prompting suspicion.

The source detailed that documents concerning Rambus' computer chips from 1998 to 2000 were shredded before the company filed the original suit.

"Rambus engaged in spoliation of evidence when it engaged in the destruction of documents on all three shred days," Whyte's ruling read, according to Courthouse News. Though the judge couldn't determine if the files prove wrongdoing, SK Hynix is now contesting the $397 million fee.

If digitization policies had been in place to protect legal documents, the blunder may not have happened, especially if the shredding was a mistake. Such tactics could have saved all parties time, effort and money in legal fees.

Brought to you by Image One Corporation, providing complete information governance since 1994.

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