You are using Microsoft Exchange Server 2013 or Microsoft Office 365.
You have two users, User A and User B.
User A’s mailbox is put on a litigation hold or an in-place hold.
User B’s mailbox is not put on a litigation hold or an in-place hold.
User A designates User B as a delegate to User A's mailbox.
User B uses Outlook Web App to access User A’s mailbox. Then, User B deletes a folder from User A’s mailbox or moves the folder to User B’s mailbox.
In this scenario, the deleted or moved folder items do not appear in the "Deleted Items" section of the Recoverable Items folder.
This problem occurs when a user uses Outlook Web App to delete or move a folder from a delegated mailbox that is on hold to another mailbox if that mailbox is also open in Outlook Web App but is not on hold. The items are preserved according to the hold settings of the delegate's own mailbox, not the settings of the delegated mailbox. The delegate can move or delete individual items inside a folder, and the items are preserved as expected.
Non-delegated scenarios, in which one user is the sole owner of a mailbox, are not affected by this issue. Additionally, this problem does not occur in the Outlook client.
To work around this problem, use either of the following methods, as appropriate:
Put a hold on all users who are participating in delegated scenarios.
Disable Outlook Web App for users who have delegated access to their mailbox.
This problem has been resolved in Office 365. It has also been fixed for on-premises customers in Exchange Server 2013 Cumulative Update 7 for Exchange Server 2013. If more information about this fix becomes available, we will post it in this article.