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HospitalityLawyer.com | Setting the Record Straight by Documenting the Business Disruption

Date post: 05-Dec-2014
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In the last year alone, this country has had more than its share of natural disasters—floods, wildfires, hurricanes and tornadoes have wreaked havoc on homes and businesses. Human error and malfeasance account for immeasurable workplace disruptions as well. We’ve seen computer hackings that shut down servers, electrical fires, accidents related to substance abuse and even terrorist attacks. As a business owner, it is imperative that you be proactive and put into place a plan for emergencies that will not only ensure the safety of your staff, but also protect you from liability down the line. Few companies take the time to instate a comprehensive business continuity plan that fully covers emergency preparedness in the event of a natural disaster, or other major business disruption. The goal of the plan should be twofold; put a team in place so that operations can smoothly and successfully resume at the end of the interruption, and, just as important, make sure that the proper documentation procedures are followed to avoid liability or a possible lawsuit. For more information, please visit http://hlconverge.blogspot.com.
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By David Samuels and Bob Mellinger, Partners, Michelman & Robinson I n the last year alone, this country has had more than its share of natural disasters—floods, wildfires, hurricanes and tornadoes have wreaked havoc on homes and businesses. Human error and malfeasance account for immeasurable workplace disruptions as well. We’ve seen computer hackings that shut down servers, electrical fires, accidents related to substance abuse and even terrorist attacks. As a business owner, it is imperative that you be proactive and put into place a plan for emergencies that will not only ensure the safety of your staff, but also protect you from liability down the line. Few companies take the time to instate a comprehensive business continuity plan that fully covers emergency preparedness in the event of a natural disaster, or other major business disruption. The goal of the plan should be twofold; put a team in place so that operations can smoothly and successfully resume at the end of the interruption, and, just as important, make sure that the proper documentation procedures are followed to avoid liability or a possible lawsuit. Your Emergency Team A business continuity or “emergency management” team is fundamental to a well thought out business continuity action plan. Every person should have a clearly defined role, and it is helpful if that role is tai- lored to each team member’s particular strengths. A good example is that most offices have “fire wardens,” employees who will supervise an evacuation and take role call during a fire drill, or real fire, should one occur. It would be foolish to choose an employee who is part-time or frequently works from home, as the person should be reliable and generally available in the event of a business disruption. Team captains, and other people on your business continuity team, should be delegated authority to make decisions in the event of an emergency.
Transcript
Page 1: HospitalityLawyer.com | Setting the Record Straight by Documenting the Business Disruption

By David Samuels and Bob Mellinger, Partners, Michelman & Robinson

In the last year alone, this country has had more than its share of natural disasters—floods, wildfires,

hurricanes and tornadoes have wreaked havoc on homes and businesses. Human error and malfeasance account for immeasurable workplace disruptions as well. We’ve seen computer hackings that shut down servers, electrical fires, accidents related to substance abuse and even terrorist attacks. As a business owner, it is imperative that you be proactive and put into place a plan for emergencies that will not only ensure the safety of your staff, but also protect you from liability

down the line. Few companies take the time to instate a comprehensive business continuity plan that fully covers emergency preparedness in the event of a natural disaster, or other major business disruption. The goal of the plan should be twofold; put a team in place so that operations can smoothly and successfully resume at the end of the interruption, and, just as important, make sure that the proper documentation procedures are followed to avoid liability or a possible lawsuit.

Your Emergency Team

A business continuity or “emergency management” team is fundamental to a well thought out business continuity action plan. Every person should have a clearly defined role, and it is helpful if that role is tai-lored to each team member’s particular strengths. A good example is that most offices have “fire wardens,” employees who will supervise an evacuation and take role call during a fire drill, or real fire, should one

occur. It would be foolish to choose an employee who is part-time or frequently works from home, as the person should be reliable and generally available in the event of a business disruption. Team captains, and other people on your business continuity team, should be delegated authority to make decisions in the event of an emergency.

Page 2: HospitalityLawyer.com | Setting the Record Straight by Documenting the Business Disruption

The Scribe

One of the most important and often overlooked emergency team positions, especially when it comes to issues of liability, is the scribe. The scribe documents everything that happened during a crisis or disruption. The creation of a comprehensive record will prove invaluable years later should you or your firm be hit with a lawsuit.

The scribe is essentially a shadow of the team captain. Each individual on the business continuity team should report to the scribe, who must be familiar with the business continuity action plan. When a record is prepared with fastidious care, it can be turned over to your insurance carrier or defense attorney and serve as a significant tool during litigation and depositions. In most states, the statute of limitations for such litigation is one to three years, and depositions often take another twelve months. Thus, one could be asked about specific actions and decisions that took as much as four years ago, which can be extremely difficult to recount without a comprehensive record.

The scribe needs to document the following information; the time and date something occurred or was assigned, decisions made and why, actions taken and why, people involved, witnesses and outcomes.

It is not necessary to have a verbatim report, but the information should be objective and factual. The scribe should not record damning, or potentially incriminating statements. Furthermore, omit statements that are based purely on opinion or speculation. It’s imperative to keep the record factual.

This record should also be kept confidential in order to maintain privilege. In the event that people such as legal representatives or their private investigators request documentation, speak to an attorney before taking any action. An attorney will know the nuances of when privilege can be waived in these types of situations.

You can have the best action plan and business continuity team in place, but without a scribe documenting events, you are neglecting a crucial aspect of preparedness and opening yourself up to potential lawsuits. The scribe is one of the most important members of the emergency team, and his or her work will be instrumental in setting the record straight later. Appointing and properly training a scribe is a necessary business decision, and can prove to be a lifesaver long after the dust from the disaster or business disruption has settled.

DAVID SAMUELS is a senior litigation partner with Michelman & Robinson LLP, specializing in the Hospitality, Insurance, Construction, Government & Municipalities, and Healthcare Industries. He has more than 20 years of litigation experience and is a veteran of numerous jury and bench trials, arbitrations and mediations.

BOB MELLINGER is the founder and president of Attainium Corp, which specializes in business continuity, emergency preparedness, crisis management and disaster plan testing services for associations, credit unions, law firms and other professional corporations. Bob can be reached at [email protected] or (571) 248-8200.


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