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Taking E-Signatures to Court:

How to prevent and prepare for legal disputes involving electronic signatures and electronic transactions

Electronic signatures were given the same legal status as their wet ink counterparts with the passing of the federal E-Sign Act in 2000. For nearly 10 years, government and commercial organizations have been able to adopt a uniform e-signature process across all 50 states knowing that records cannot be refused by a court of law solely on the basis that they were signed electronically.

The question on most organizations’ minds is no longer whether electronic signatures are legal. Rather, how reliable are electronic signatures? How can the risks associated with electronic transactions be minimized? How do businesses relying on electronic signatures fare in settlement negotiations?  And failing settlement, do judges admit and enforce electronically signed records in courts when contested?

This article serves to answer these questions, as well as outline how organizations can leverage electronic signatures in settlement when contested, and, failing settlement, effectively prepare for court should a dispute reach that point. The article reflects the recommendations of Greg Casamento, Partner at Locke, Lord, Bissell & Liddell LLP, and Frank Zacherl, partner at Shutts & Bowen LLP, as presented during a Webcast hosted by Silanis Technology on February 18, 2010. 

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