Back to Distribution C

C5: Litigation Hold Memo

Document Preservation Obligations - Anticipated Litigation

TO: Priya Sharma, CEO
Marcus Chen, COO
Diane Okonkwo, Head of Finance
NovaStream Leadership Team

FROM: Rachel Dominguez-Park, Esq.
Dominguez-Park McCarthy LLP

DATE: October 5, 2025

RE: Document Preservation Obligations - Anticipated Litigation
MATTER: Washington v. NovaStream Logistics

Immediate Action Required

NovaStream Logistics has received notice that Jamal Washington, a driver classified as an independent contractor, intends to pursue legal claims against the company related to his classification status and a workplace injury. This memorandum establishes document preservation obligations that take effect immediately and remain in effect until further notice.

Failure to comply with this litigation hold may result in severe legal consequences, including court sanctions, adverse inference instructions, and monetary penalties.

What Is a Litigation Hold?

When litigation is reasonably anticipated, parties have a legal obligation to preserve all documents and information potentially relevant to the claims or defenses in the case. This obligation overrides any routine document destruction policies.

A "document" includes:

  • Paper documents (contracts, letters, memos, notes, printouts)
  • Electronic files (emails, Word documents, spreadsheets, PDFs)
  • Communications (emails, texts, Slack messages, voicemails)
  • Database records (payment records, driver profiles, rating data)
  • System-generated data (GPS logs, app activity, algorithmic outputs)
  • Social media posts and messages
  • Photographs and videos
  • Metadata associated with any of the above

Scope of Preservation

Categories of Documents to Preserve

The following categories of documents must be preserved:

1. Driver Classification Documents

  • All independent contractor agreements (current and historical versions)
  • Policies regarding driver classification
  • Communications about driver classification (internal and external)
  • Legal memos, research, or advice regarding classification
  • Comparisons to competitor classification practices

2. Jamal Washington Specific

  • All contracts, agreements, and onboarding documents signed by Washington
  • All communications to, from, or about Washington
  • All payment records, earnings statements, and deduction documentation
  • All rating and performance data
  • All customer complaints or feedback involving Washington
  • All records of the July 2025 substitution request
  • All records of the September 15, 2025 accident
  • All workers' compensation-related documents

3. Driver Operations

  • RouteGenius algorithm documentation and output logs
  • Driver training materials (including "Delivery Excellence" program)
  • Performance standards and deactivation criteria
  • Rating system documentation
  • Block allocation policies and algorithms
  • Dress code, appearance, or conduct policies
  • Vehicle requirements and inspection records

4. Payroll and Compensation

  • Payment calculation formulas and documentation
  • Deduction policies and authorization procedures
  • Incentive bonus criteria and payments
  • All driver payment records (not just Washington)

5. Communications

  • All Slack channels and direct messages related to drivers, classification, or Washington
  • All emails related to drivers, classification, or Washington
  • Meeting notes or recordings where these topics were discussed
  • Text messages between NovaStream personnel about these topics

6. Insurance

  • Workers' compensation policies and coverage documentation
  • Communications with insurers about driver classification
  • Communications about Washington's workers' compensation claim

Who Is Subject to This Hold?

This litigation hold applies to:

  • All executive leadership (Sharma, Chen, Okonkwo)
  • All managers and supervisors involved in driver operations
  • Human resources / people operations personnel
  • Finance and payroll personnel
  • IT personnel responsible for data systems
  • Legal / compliance personnel
  • Any employee who communicated with or about Jamal Washington
  • Any employee involved in classification decisions

If you are uncertain whether you are subject to this hold, assume that you are and preserve all potentially relevant documents.

What You Must Do

Immediately:

  1. Stop any routine deletion of documents in the categories listed above
  2. Disable auto-delete features on email, Slack, and other systems for relevant custodians
  3. Preserve backup tapes and system archives that may contain relevant data
  4. Notify IT to suspend any data destruction or recycling
  5. Forward this memo to anyone who may have relevant documents

Ongoing:

  1. Do not delete, destroy, or modify any potentially relevant documents
  2. Do not delete Slack messages or email communications
  3. Preserve documents in their native format (do not convert or alter)
  4. Maintain documents in their current location (do not move to personal drives)
  5. Contact me immediately if you have questions about whether something should be preserved

Special Instructions

Slack Communications

I understand that Priya Sharma previously instructed Marcus Chen to "delete this convo" in a private Slack message on August 14, 2025. That instruction is hereby rescinded.

As of the date of this memo, no Slack messages may be deleted. If any messages have been deleted since August 14, 2025, please inform me immediately so we can assess whether restoration is possible and required.

Going forward, all Slack communications potentially relevant to driver classification or the Washington matter must be preserved.

Personal Devices

If you have used personal cell phones, personal email accounts, or personal computers for NovaStream business communications, those devices and accounts are subject to this hold. Do not delete any work-related communications from personal devices.

Third-Party Platforms

NovaStream uses various third-party platforms for operations (payment processing, background checks, etc.). We will need to ensure preservation of relevant data on those platforms as well. Please provide IT with a list of all third-party platforms that contain driver data.

Consequences of Non-Compliance

Courts impose serious sanctions for failure to preserve evidence once litigation is anticipated. Consequences may include:

  • Adverse inference instructions: The jury may be told to assume that destroyed documents would have been harmful to NovaStream
  • Monetary sanctions: NovaStream may be required to pay the opposing party's costs and attorneys' fees
  • Issue preclusion: NovaStream may be barred from presenting certain defenses
  • Default judgment: In extreme cases, the court may enter judgment against NovaStream

Individual employees who destroy evidence may face personal sanctions and potential criminal liability for obstruction of justice.

Certification

Please sign and return the attached certification confirming that you have read and understand your obligations under this litigation hold.

Contact

If you have any questions about this litigation hold, or if you are uncertain whether particular documents should be preserved, contact me immediately:

Rachel Dominguez-Park
Dominguez-Park McCarthy LLP
rdominguez-park@dmclegal.com
(973) 555-2400

Do not make independent judgments about what to preserve or destroy. When in doubt, preserve.

Acknowledgment and Certification

I, _________________________, acknowledge that I have read and understand the Litigation Hold Memorandum dated October 5, 2025, regarding the anticipated litigation matter of Washington v. NovaStream Logistics.

I certify that:

  1. I will preserve all documents and electronically stored information within my possession, custody, or control that may be relevant to this matter.
  2. I will not delete, destroy, modify, or conceal any potentially relevant documents.
  3. I will notify Rachel Dominguez-Park immediately if I become aware of any potentially relevant documents not covered by this memo.
  4. I understand the serious consequences that may result from failure to comply with this litigation hold.

Signature:

Printed Name:

Title:

Date:

Please return signed certification to Rachel Dominguez-Park within 48 hours.