Paralegal Advanced Competency Exam (PACE) Practice Exam

When does the duty to preserve ESI begin?

1. Once documents are printed out for review

2. As soon as there is reasonable anticipation of litigation

3. After a client has retained a lawyer

4. Upon initial client consultation

The correct answer is: As soon as there is reasonable anticipation of litigation

The duty to preserve electronically stored information (ESI) begins as soon as there is reasonable anticipation of litigation. This principle arises from the need to ensure that relevant evidence is not lost or destroyed once a party knows or should know that litigation may ensue. The trigger for this duty is not solely dependent on formal actions, like hiring a lawyer or having a consultation, but rather on the knowledge that a legal dispute is likely to happen. For instance, if a business is facing potential litigation due to a dispute with a former employee, the duty to preserve any relevant emails, records, or documents related to that dispute begins as soon as the business becomes aware that litigation is possible. A proactive approach in preserving ESI helps to bolster the integrity of the legal process, as it fosters transparency and accountability. Other options do not reflect the appropriate moment when the duty to preserve arises. Events like printing out documents for review or merely consulting a lawyer do not, by themselves, indicate that litigation is reasonably anticipated. Such actions may occur at a moment when no formal anticipation of litigation is present, and therefore do not satisfy the criteria for the duty to preserve.