"Our standard process is to only retain logs when legally required to, either due to being notified about a litigation or through legally mandated periods" is a fully complete sentence.
Unless you're required to retain logs for some reason like a litigation hold or legally or contractually mandated retention period and you violate those, while the adversarial party might be annoyed at you for not retaining logs there isn't much they can or will do beyond being annoyed.
Of course if you destroy logs after being notified of litigation or inquiry, you're gonna have a bad day.