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  EWHC 2168 (QB).
Continue Reading Narrowing the Scope of Data Breach Claims? – Warren v DSG Retail Ltd