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Data leak wake-up call

25 October 2018
Issue: 7814 / Categories: Legal News , Data protection
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Supermarket vicariously liable for employee breach

Supermarket giant WM Morrison has lost its appeal against a ruling that it is liable for an intentional data breach by an employee, in the first class action data breach case.

In 2014, the supermarket’s disgruntled internal auditor, Andrew Skelton, posted bank account details, salary information, national insurance numbers, addresses and phone numbers of 100,000 employees to data sharing websites. Skelton was sentenced to eight years in prison and Morrison was held vicariously liable for his actions.

Ruling in WM Morrison Supermarkets v Various claimants [2018] EWCA Civ 2339, the Court of Appeal unanimously held the supermarket giant liable to the 5,518 claimants who sought compensation. Morrisons has been refused permission to appeal to the Supreme Court.

Nick McAleenan, partner at JMW Solicitors, who represented the claimants, said: ‘They were obliged to hand over sensitive personal information and had every right to expect it to remain confidential, but a copy was made and it was uploaded to the internet and they were put at risk of fraud, identity theft and a host of other problems. ‘Unsurprisingly, this caused a huge amount of worry, stress and inconvenience. The judgment is a wake-up call for business.’

Nicola Cain, partner at RPC, said: ‘The Court of Appeal’s decision in the Morrisons case is a stark warning to all businesses that they can end up facing huge data breach compensation claims despite doing nothing wrong at all.

‘The High Court specifically made the point that Morrisons met its legal obligations to protect its employees’ personal data. It was as much a victim in this case as those who had their data breached.’

Issue: 7814 / Categories: Legal News , Data protection
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Druces—Lisa Cardy

Senior associate promotion strengthens real estate offering

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Leading patent litigator joins intellectual property team

NEWS
The government’s plan to introduce a Single Professional Services Supervisor could erode vital legal-sector expertise, warns Mark Evans, president of the Law Society of England and Wales, in NLJ this week
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Professor Graham Zellick KC argues in NLJ this week that, despite Buckingham Palace’s statement stripping Andrew Mountbatten Windsor of his styles, titles and honours, he remains legally a duke
Writing in NLJ this week, Sophie Ashcroft and Miranda Joseph of Stevens & Bolton dissect the Privy Council’s landmark ruling in Jardine Strategic Ltd v Oasis Investments II Master Fund Ltd (No 2), which abolishes the long-standing 'shareholder rule'
In NLJ this week, Sailesh Mehta and Theo Burges of Red Lion Chambers examine the government’s first-ever 'Afghan leak' super-injunction—used to block reporting of data exposing Afghans who aided UK forces and over 100 British officials. Unlike celebrity privacy cases, this injunction centred on national security. Its use, the authors argue, signals the rise of a vast new body of national security law spanning civil, criminal, and media domains
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