Question:

Ken,

 Has there been any court cases that have addressed legalities on copies of
original contracts and or the use of document imaging? The reason for the
question is what should an alarm dealer do to protect themselves from fire.
If we utilize document imaging and have a fire will the scanned documents
be considered legal? If you were then to sell your company would the
reproduced contracts be looked at as a legitimate asset?



Michael A. Ash

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Answer:

    All businesses need to prepare for disaster recovery.  Obviously
original contracts cannot be maintained in more than one location.  It
makes sense that reliable copies would be admissible in court.  Faxed
copies are generally acceptable when production of the original is not
practical and explanation of why the original is not possible is given.

    When you intent to introduce a scanned copy of the contract you will
need to explain that your business practice is to scan the contract.  You
will need to testify that you use a PDF format which insures that the
scanned copy cannot be altered and that it is a true and exact copy of the
original.  The chain of events, from execution to electronically scanning
and storing and then reproducing the contract will have to be explained so
that the trier of facts is convinced that the electronically reproduced
copy is an exact copy.  Of course this type of testimony is only necessary
if there is some question that the electronic copy is not an exact copy, a
fact which may very well be admitted by a subscriber in pleadings or
discovery well before a trial.