Entrepreneur Magazine (March 2007) writes about "the new rules govern your company’s electronic files. Under amendments to the Federal Rules of Civil Procedure that took effect December 1, 2006, information stored electronically--including company e-mail--is subject to the same rules of discovery as other evidence." The article talks about spoliation. You need to have a Document Retention Policy; Training; and Monitor e-mail and IM/chat. Just one more reason to offer data storage.