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Documents Worth Saving
By Lawrence
B. Burke
[June 2004]
Businesses and individuals should carefully consider
which documents to save over the long term—regardless
of retention requirements.
Insurance policies
Save insurance policies “forever.”
Changes to insurance policy forms in 1987 made insurance policies
extremely valuable for businesses and individuals who later
encounter environmental problems that could be traced to conditions
originating before 1987. No one can predict which policies may
be valuable in the future, but it is clear that insurance companies
have an incentive to destroy policies, whereas individuals have
an incentive to retain them. Insurance policies are one type
of document that will not harm you and can only help you if
you retain your records.
Purchase and sale contracts
Any agreement that provides you a release
or indemnity should be retained. For example, a court has enforced
a 1945 indemnity provision from the federal government and found
that it protected a company from Superfund liability. (E.I.
Du Pont de Nemours & Co., Inc. v. United States, No.
03-5137 [Fed.Cir. April 28, 2004])
Correspondence with government agencies
Incredible as it may seem, government agencies
do lose files. If you have obtained a favorable determination
from a government agency, by all means retain that determination
and any records needed to support it.
Records from prior owners and operators
If you buy a property or business, you may
become liable for the acts or omissions of your predecessor.
Although most state laws provide protection for property owners
in situations where contaminants migrate onto their property,
it is more difficult to obtain protection for contamination
originating on your property—even if it was caused by
prior property owners. Therefore, records from operations and
environmental testing before your purchase of a business or
property may help you defend against future claims. Try to obtain
copies of such records as a part of any property or business
purchase.
A word of caution!
This list is by no means complete. Not all
records deserve permanent retention. However, the types of records
listed above are often of assistance when problems arise –
even far into the future.
For more information
Davis Wright Tremaine has successfully
assisted clients in disputes involving liability for environmental
contamination at facilities throughout the western United States.
We have the technical expertise and experience to help you protect
your rights. We welcome the opportunity to meet with you and
discuss your individual legal needs, and to devise effective
strategies to address potential concerns.
For further information, contact:
This Environmental Law Advisory is a
publication of the Environmental Law Department of Davis Wright
Tremaine LLP. Our purpose in publishing this Advisory is to
inform our clients and friends of recent developments in environmental
law. It is not intended, nor should it be used, as a substitute
for specific legal advice as legal counsel may only be given
in response to inquiries regarding particular situations.
Copyright © 2004, Davis Wright
Tremaine LLP.
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