Legal Hold

What Does Legal Hold Mean?

A legal hold is a situation wherein a business or organization makes changes to its method of records management in order to preserve information because of a pending litigation. In the digital age, it often involves the handling of business data across sophisticated IT architectures.

Advertisements

Legal hold may also be called “preservation” order or “hold” order.

Techopedia Explains Legal Hold

In addition to pending litigation, a legal hold may be put in place because of an audit and/or an investigation. This will affect corporate policy in a number of ways. For example, a legal hold will often change the rules on how data are backed up in a system, how tape vaults or other storage archives are maintained, and whether physical storage media are recycled. Changes to the Federal Rules of Civil Procedure in the United States address e-discovery or the discovery of digital information to bring local processes into the 21st century.

The philosophy behind a legal hold is aimed at preventing the “spoliation” of evidence, including the destruction of physical evidence, alteration of digital records, or other changes that can be damaging to the defense. Internal counsel often generates a legal hold in order to keep important information handy.

Advertisements

Related Terms

Margaret Rouse

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.