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Every word counts: business communications that win in the courtroom.

Article Excerpt
Damage awards in civil lawsuits have soared in recent years, some due to the explosive content of business communications, gaps in documentation, inflammatory e-mail, or charges of evidence tampering.

Recently General Motors was hit with a record $4.9 billion verdict, based largely on an internal memo a staff engineer wrote nearly two decades earlier. Similarly, in lawsuits against large insurers and small service providers, old marketing memos proved to be pivotal evidence. Inflammatory e-mail messages haunted Microsoft in its antitrust trial, and offensive e-mail plagues employers in costly harassment lawsuits. These are just a few examples of business communications created in one context and then "spun" against the company in the courtroom.

Equally troublesome are high profile accusations of document shredding. Enron and Andersen are the latest (but not the only) businesses finding themselves on the defensive over when and how they destroyed evidence. From gigantic civil penalties to criminal obstruction of justice charges, haphazard enforcement of document retention and disposal policies is a legal minefield.

Many managers today are unaware of the legal pitfalls inherent in generating written communications and business records. During a trial, the courts may analyze everything from informal memos to performance appraisals to marketing plans, all of which may be turned against the company. Other managers, who are aware of the legal issues, often feel pressured into over-documenting...