2021 was a busy year for UK data litigators as courts got their teeth into some key issues in this developing area. One area of particular focus was how English law approaches the ‘minor’ or ‘inadvertent’ data breach. Such incidents can easily arise; an email copied to the wrong person, usually swiftly deleted, is a
Warren v DSG Retail Ltd
Narrowing the Scope of Data Breach Claims? – Warren v DSG Retail Ltd
Over the past few years, there has been an increasing number of claims against businesses and public bodies for distress caused by data breaches. The pattern is, by now, a familiar one. A claimant will make a claim for breach of data protection legislation, seeking damages at a relatively low value for the distress and anxiety they say has been caused by the data breach. This claim will be accompanied by claims for one or more of: misuse of private information, breach of confidence and negligence. Added on to the damages claimed will be the legal costs of the claimant’s lawyers, together with the after-the-event (“ATE”) insurance premium for the policy the claimant will have procured to bring a privacy claim. As a result, the defendant is faced with a difficult decision – pay over the odds for a claim where the claimant has suffered no financial loss, or fight litigation with the risk of mounting costs on both sides if the decision goes against them.
Following a cyber-attack in 2017 and 2018, this is the situation that faced DSG Retail Limited (“DSG”), and which has led to an important judgment for these data breach claims, Warren v DSG Retail Ltd [2021] EWHC 2168 (QB).
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