For retailers and service providers in any industry, the possibility of being sued for negligence and product liability claims always exists. If your business is sued for personal injuries allegedly caused by a product you sold or a service you provided, your ability to provide the right documentation can be critical to your defense.
For that reason, it's important to be prepared in case a lawsuit arises. While no single rule applies to all situations, a few simple steps can be taken to assist you and your attorney in presenting your side of the story.
Protect yourself
One of the most important steps you can take is implementing a consistent document retention policy. It is important to keep all records relating to sales and service agreements for a specific duration of time. Many jurisdictions have requirements concerning the length of record retention. Therefore, you should consult your attorney to determine the standard in your area.
The materials retained should reflect documents given to your customers, including all safety information. It's one thing to say that you know you gave some type of "No Diving" warning to the customer because you always do, but it's much more helpful to produce the document the customer signed acknowledging receipt of a full-size, color "No Diving" placard.
You should also retain records pertaining to the following:
* All safety procedures you have implemented, as well as any training conducted
* Who attended and when
* All insurance policies, regardless of whether there have been changes to the policies or new ones have been purchased
* All relevant photographs, videotapes and even data stored on a computer.
If you are sued
As soon as you receive notice of a potential claim, you should begin gathering all relevant documents. The litigation could stretch over a number of years, during which time memories tend to fade, employees may leave and records could be lost.
Track down employees who may know of additional documents involving the transaction. In some jurisdictions, written statements from employees must be produced to the opposing party, so you should consult with your attorney before allowing anyone to officially meet with one of your employees.
Do not discard or destroy anything related to the litigation. This could lead to court sanctions in the case or, a jury being instructed to assume the documents were contrary to your position. Independent litigation may even be brought against you based solely on the destruction of the documents.
All applicable materials should be made available for your attorney's review, to allow him or her to prepare your defense. At some stage of the litigation, there will likely be a request for specific documents from the party suing you. Work with your attorney to determine which documents should be produced.
Soden is a litigation partner specializing in products liability defense at Shook, Hardy & Bacon LLP, in Kansas City, Mo.
For retailers and service providers in any industry, the possibility of being sued for negligence and product liability claims always exists. If your business is sued for personal injuries allegedly caused by a product you sold or a service you provided, your ability to provide the right documentation can be critical to your defense.
For that reason, it's important to be prepared in case a lawsuit arises. While no single rule applies to all situations, a few simple steps can be taken to assist you and your attorney in presenting your side of the story.
Protect yourself
One of the most important steps you can take is implementing a consistent document retention policy. It is important to keep all records relating to sales and service agreements for a specific duration of time. Many jurisdictions have requirements concerning the length of record retention. Therefore, you should consult your attorney to determine the standard in your area.
The materials retained should reflect documents given to your customers, including all safety information. It's one thing to say that you know you gave some type of "No Diving" warning to the customer because you always do, but it's much more helpful to produce the document the customer signed acknowledging receipt of a full-size, color "No Diving" placard.
You should also retain records pertaining to the following:
* All safety procedures you have implemented, as well as any training conducted
* Who attended and when
* All insurance policies, regardless of whether there have been changes to the policies or new ones have been purchased
* All relevant photographs, videotapes and even data stored on a computer.
If you are sued
As soon as you receive notice of a potential claim, you should begin gathering all relevant documents. The litigation could stretch over a number of years, during which time memories tend to fade, employees may leave and records could be lost.
Track down employees who may know of additional documents involving the transaction. In some jurisdictions, written statements from employees must be produced to the opposing party, so you should consult with your attorney before allowing anyone to officially meet with one of your employees.
Do not discard or destroy anything related to the litigation. This could lead to court sanctions in the case or, a jury being instructed to assume the documents were contrary to your position. Independent litigation may even be brought against you based solely on the destruction of the documents.
All applicable materials should be made available for your attorney's review, to allow him or her to prepare your defense. At some stage of the litigation, there will likely be a request for specific documents from the party suing you. Work with your attorney to determine which documents should be produced.
Soden is a litigation partner specializing in products liability defense at Shook, Hardy & Bacon LLP, in Kansas City, Mo.
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