Guide to Legal Document Storage
The right storage facility will allow you to keep track of your files and cases, well organized and accessible.
Most law firms are concerned with protecting confidential information on their clients. Storing client files offsite means storing them in a climate-controlled environment, which while not as convenient as keeping them in your own office, ensures they are safe from things like flooding, fire and mold, as well as theft or vandalism . They are secure from unauthorized access, while still being accessible.
The type of legal document storage you choose will depend largely on the types of documents you will be storing. Some of the things firms commonly store with offsite storage services include:
All of these types of legal documents are equally important. If any of them are lost, stolen or destroyed, it can have devastating effects on your practice, both in terms of reliability and revenue.
Storage Solutions for Legal Documents: What You Need to Know
When it comes to the storage of legal documents, you have three options: physical storage, digital storage or a hybrid solution that utilizes a combination of both digital and physical storage. Each option has its benefits and drawbacks, and the right one for your practice will depend on the nature of your documents, how frequently you access them, and your budget, among other factors.
Physical storage is probably the option you are most familiar with. Documents are printed out and placed in binders or filing cabinets, which are labeled and organized. The systems you use to classify and store your documents is up to you—choose what works best for your practice’s needs.
Digital storage uses cloud-based software to store your documents in an organized manner, giving you the ability to easily search by keyword to find what you need. In addition to being cloud-based, another important factor of digital storage solutions is that they are eDiscovery ready, meaning that if your firm ever has to undergo an eDiscovery audit, your firm is able to pull documents quickly and efficiently. In addition to giving you unlimited access to your law firm’s documents-24 hours a day, 7 days a week, 365 days a year-digital storage also allows you to easily share files with clients, law firms, witnesses, expert witnesses, opposing counsel, court reporters, and other experts, experts, which is invaluable both for the convenience of your clients and for the productivity of your practice.
Hybrid storage has become more popular in recent years as law firms continue to transition into the digital age. A hybrid system combines elements of physical and digital storage to create a functional system that meets all document-related needs. One way that firms utilize a hybrid system is to have all new documents filed digitally while older documents remain stored physically. Others opt to scan their physical documents and file them digitally. Either way, hybrid systems give law firms the ability to access documents in the way that is most logical for them.
Regardless of which storage solution you choose, it is essential that you choose one that is right for your practice. Being able to access and organize your documents in the most efficient manner possible can save you a lot of time (and money). Whether digital only, physical only or a combination of both, there is a solution out there that will keep things organized and your practice as productive as possible.
Legal Document Storage: Compliance and Legal Issues
Metadata Management: When storing legal documents, an organization must ensure that metadata is protected, and that access to such documents is secure. If an organization is already storing client information, they are bound by compliance with the Data Protection Act 1998 (DPA) and EU General Data Protection Regulation (GDPR) 2018. The DPA and GDPR 2018 set out what organizations must do in order to comply with data protection laws. Protection of data is a serious legal requirement and most organizations are subject to a fine if they suffer a breach. For law firms, who hold sensitive information on their clients, as well as subject to the DPA and GDPR 2018, there are additional rules and guidelines set out by the Solicitors Regulation Authority (SRA). The SRA Code of Conduct for solicitors, RELs and RFLs (the "Code") sets out ethical standards solicitors are expected to comply with; you can read the Code here. In relation to storage of legal documents the relevant principle in the Code is Principle 10 which requires that a solicitor has management systems and risk controls in place which will enable them to provide services to clients competently and diligently. This goes hand in hand with the use of risk assessment and compliance controls as a means to ensure that confidential information, such as legal documents, are not unlawfully accessed or destroyed.
Retention Schedule: A retention schedule is a schedule of guidelines that outlines the retention periods for different types of documents. The Records Management Society advise that a retention schedule "is essential for complying with legislation and best practice, minimizing costs, maximizing efficiency and reducing the risk of litigation." Most organizations regularly review their retention schedules to ensure compliance. The Information Governance Toolkit was developed by the HSC Information Management and Technology Services to provide health and social care organizations with a single cohesive toolkit covering the Department of Health’s requirements for both Information Governance and Information Assurance. A retention schedule is a requirement of The Information Governance Toolkit 2018-19, version 3.1.
A retention schedule provides guidance on how long an organization needs to keep any type of record and can range from 6 months to 70 years. However, even when a retention schedule is complied with, if a court or other regulatory body issues a preservation notice, the documents must be preserved for as long as the notice is in effect. Further, if an organization is in the process of litigation with another organization, it may be required to save all of its documents regardless of what the retention schedule states. In terms of retention of documents, there are two issues law firms should bear in mind:
Transformation to Digital Storage for Legal Documents
The digital transformation in document storage is a key topic of discussion amongst legal, finance and IT leaders. The legal industry, known for its late adoption of technology, is not immune to the digital transformation. The challenge remains for legal professionals to find a solution that fits within their current workflows, yet leverages the capabilities of the latest technologies.
Cloud-based solutions are one of the most cutting-edge (and cost-effective) ways to manage documents. While some firms still cling to local servers, cloud storage is as reliable, if not more reliable, as an on-premise solution. Combined with security measures such as antivirus protection, intrusion detection systems, two-step verification and data encryption that cloud providers have in place, you can be sure your files are safe on a cloud-based platform, and that you have access to your data anytime, anywhere. Cloud-based storage also does away with the need to keep documents on a firm’s computer, eliminating the risk of losing files in the event of a damaged hard drive. With all of your files stored on a central, secure server, sharing files with colleagues is simple – with just a click you can send multiple files to any employee at your firm.
Electronic signature software allows lawyers to send and sign documents digitally, reducing the need for printing and scanning. In addition to making document workflow more efficient, electronic signature software is a "must-have" for legal firms due to its ability to store signed documents in a secure system, preventing any claims of forgery. When clients have immediate access to a document, it’s less likely that there will be disputes over whether the document was digitally signed or witness signatures were obtained, for example. The result is less time wasted in court over challenging the validity of signed documents, and more revenue generation activities, such as filling out contracts and signatures for wills and estates, closing real estate transactions, licensing agreements and consents.
Archiving documents digitally further streamlines document management processes. The process of archiving documents in a cloud-based storage system allows for easy security and access of essential documents, both those that are active and those that are inactive. A trusted archiving partner ensures that digital files can be found quickly, and the risk of documents being lost or accidentally deleted is reduced.
Other trends driving the digital transformation are e-filing and client access portals. E-filing allows law firms to file documents electronically with the court. This results in faster communication with judges and lawyers, and faster responses to clients. A client access portal enables lawyers and clients to directly share documents and communicate, improving the overall efficiency of day-to-day operations.
As technology continues to change the way law firms do business, it’s essential for firms to evaluate how changes can be beneficial to them, their employees and their clients. Document management has never been easier, with cloud storage, electronic signatures, digital archiving, e-filing and client access portals transforming how law firms operate, with many options to consider depending on each firm’s unique needs. The challenge remains for legal professionals to find a solution that fits within their current workflows, yet leverages the capabilities of the latest technologies.
Legal Document Storage: A Guide to Secure Solutions
With the sensitive nature of legal documents, it is imperative that they be stored securely to prevent unauthorized access and potential data breaches. Employing effective security measures on legal documents is not just about compliance—it’s also about maintaining the trust and credibility essential in the legal field. Here are some recommended best practices for ensuring that your legal documents are securely stored:
Password Protection: Similar to a lock and key, password protection restricts access to your documents to only those who have the correct password. This may include the use of two-step verification (2SV) or two-factor authentication (2FA), both of which add an extra layer of security by requiring a second method of identification beyond a password. While enabling password protection can seem tedious, especially with multiple accounts and frequent password changes, it is one of the simplest and most effective ways to prevent unauthorized access to your data. Multi-factor authentication tools such as GAuth and Authy can be installed on most mobile devices for easy implementation.
Encryption: Encryption is the method of encoding your documents into an unreadable format for anyone who doesn’t have the proper encryption key. Documents can be encrypted before they are uploaded to a secure platform like FullCourt or Odyssey. Because legal documents tend to be larger than other types of documents, encryption can take some time. But without encryption , you risk having your documents exposed if you should fall victim to a cyber-attack or other type of breach.
Regular Audits: Even the most secure storage systems are vulnerable to inefficiencies and bugs that can put your documents at risk. Just as you regularly check your bank and credit card statements for suspicious activity, you should periodically review your document storage solutions to ensure that your documents are secure and retrievable. Create a list of your important documents, whether digital or physical, along with information like the file location, file owner, last modified date, and a link to how and when you will back them up. Report any inconsistencies to your data protection team immediately.
Regular Backups: By regularly backing up your important documents, you ensure that even in the event of a security attack or system crash, your data is recoverable. Automated backups, usually completed nightly, can perform this task seamlessly. Upon completion, you should receive a notification about the backup and any issues that occurred. If for some reason your document’s storage solution does not have automated backups, you will need to manually back up your data. Many law firms still rely on external hard drives for backups, but these are easily lost, stolen or damaged. Saving backups on the cloud or a physical drive off site is usually the best solution.
Just as you wouldn’t store a $1 million painting in a flimsy building with paper windows, you shouldn’t store sensitive legal documents without taking the necessary precautions to protect them.
How to Save on Legal Document Storage
Legal and accounting firms need to find cost-effective measures while storing massive amounts of paper and electronic documents. Off-site storage is one way to minimize the physical space necessary for your legal document storage needs. By partnering with a trusted document storage provider, you can save on the costs associated with storing physical documents. For instance, record centers typically offer space at rates per cubic feet to store all off-site information such as files, documents, off-line system backups, computers, tapes, and disk backup components. These fees include quality control, labeling, bar coding, secure storage, access to retrieval management reports and packing services.
While off-site storage is a great option to have, it’s important to consider how frequently you will need to access your information. Will it be often or seldom? If you can live without this data for a while, utilizing off-site storage will save you money. Having information stored off-site in locked facilities will also help protect your business and its client information against common incidents such as natural disasters and burglary.
In some cases, e-discovery may be the best option when storing important legal documents for your office. E-discovery is commonly used within legal fields, but it can be beneficial in any industry. It is a process part of the wider electronic discovery to discover what is stored on computers and other electronic devices. Electronic records are stored to be easily found during e-discovery. E-Discovery is an efficient and legal way of finding crucial evidence because it lets users search the entire document system for specific documents. All of the details of the document are searchable, including dates, recipients, and even content. E-discovery also allows users to locate and organize specific documents for quick retrieval.
There is also the option to manage your own documents onsite. Simply sticking to paperless solutions and becoming accustomed to organizing hard copies in a manner that makes them easy to find removes the need for a third-party storage vendor. Staff members should regularly monitor indexes and make sure they are being accurately input into the document management system. This will help improve the efficiency of your workflows and reduce the amount of emergency scanning services that need to be done. The key benefit of any of these options is that you can manage costs while maintaining effective legal document storage.
Legal Document Storage Trends
On the horizon, various technologies promise to further simplify and secure legal document storage. Blockchain technology, for instance, offers a distributed ledger that can ensure the authenticity and immutability of legal documents. By utilizing a decentralized blockchain network, law firms can practically guarantee their documents are stored securely and are timestamped to reflect their date of creation. This could drastically reduce fraud and enhance trust between parties who need to share sensitive information.
Artificial Intelligence (AI) also stands to significantly impact the future of document storage in the legal sector. Programmers are developing more advanced predictive modeling and machine learning techniques that can automatically identify which documents need storing and back them up in a secure , organized manner. This not only streamlines the process and makes document storage more efficient but allows for faster retrieval, case preparation, and collaboration among different teams.
The rise of democratized legal services, including everything from contract analysis to complex litigation, will also influence how law firms store documents. As these services become a part of regular legal practice, they’ll require more storage space, safe-harbor provisions, securely access networks, and a well-known list of all cloud vendor data center locations. All of these future trends may very well create or destroy competitive advantages. Law firm decision-makers should understand and share information about these proposed future trends to plan correctly.