What is a disposition hold and how is it different from a litigation hold?

A disposition hold is a deliberate suspension of the normal disposition process for records that would otherwise be eligible for destruction or transfer. When a hold is in place, records that have reached the end of their retention period are not destroyed, transferred, or altered until the hold is lifted. Holds are a routine, intentional part of a well-governed records program, not an exception to it.

What a disposition hold does

Under a properly designed retention schedule, records move automatically toward disposition once their retention requirement is met. A disposition hold interrupts that flow. It tells the system and the people who manage records: stop the clock on destruction for this material.

Organizations apply disposition holds for many reasons, including:

• An active or anticipated audit, investigation, or regulatory inquiry
• A pending records request, such as a public-records or FOIA request
• Internal review of the records’ continuing business or historical value
• Litigation or threatened litigation

That last reason is where the two concepts overlap.

How a litigation hold is different

A litigation hold (also called a legal hold) is a specific type of hold triggered when an organization reasonably anticipates litigation. Its purpose is to preserve potentially relevant information so it is available for discovery. The legal duty to preserve evidence is what drives it, and failing to act can carry serious consequences such as sanctions or spoliation findings.

Key distinctions:

• Trigger. A disposition hold can arise from any business, audit, or compliance need. A litigation hold arises specifically from reasonably anticipated or actual legal proceedings.
• Authority. Litigation holds are typically directed and overseen by legal counsel; general disposition holds may be issued by records or program managers.
• Scope. A litigation hold targets information relevant to a particular matter, including drafts and informal communications. A disposition hold often applies to defined record series.
• Duty. The litigation hold reflects a legal obligation to preserve evidence, not merely an internal policy choice.

In practice, a litigation hold is one important reason an organization places a disposition hold. Both work the same mechanically: they pause destruction. The difference lies in why the pause exists and who is accountable for getting it right.

For more on how retention and disposition fit together, see the retention and disposition topic hub.