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29 November 2007
Issue: 7299 / Categories: Legal News , Data protection
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Government may be sued over HMRC data breach

News

People whose personal details are logged on data discs lost by HM Revenue & Customs (HMRC) may be able to sue the government for damages if their details are misused, experts say.

However, says James Mullock, partner at Osborne Clarke, UK laws do not lend themselves to large damages being paid out.
He says: “The Data Protection Act requires damage and distress to be shown to have directly resulted from a breach. The claim would be for a breach of the Act’s 7th principle (use of appropriate technical and organisational measures). A claim in negligence would also be a possibility.”

What is highly likely, says Mullock, is that the Information Commissioner’s Office (ICO) will take action against HMRC—which lost two discs containing names, addresses, bank details and national insurance numbers of child benefit claimants.

“The tack the ICO has taken recently is to require organisations which have breached the Act to sign undertakings stating that they will take steps to reduce the impact of the breach and to prevent a repeat event, thereby giving the regulator the ability to bring a claim for breach of undertaking and for breach of the Act if measures are not adopted,” he says.
 

Describing the security breach as “extremely serious and disturbing”, the information commissioner, Richard Thomas, confirms that his office is already investigating two other breaches by HMRC.
He says the Chancellor has announced an independent review of the matter by PricewaterhouseCoopers, and a full report will be given to the ICO.

“We will then decide what further action may be appropriate. Searching questions need to be answered about systems, procedures and human error inside both HMRC and the National Audit Office,” says Thomas.

Issue: 7299 / Categories: Legal News , Data protection
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MOVERS & SHAKERS

NLJ Career Profile: Stephen Ward, The Barrister Group

NLJ Career Profile: Stephen Ward, The Barrister Group

From mowing lawns to life at the Bar: Stephen Ward reflects on an unconventional career

Clarke Willmott—Ben Loosemore

Clarke Willmott—Ben Loosemore

Commercial property partner joins Clarke Willmott in Southampton

Ellisons—Robert Tiffen

Ellisons—Robert Tiffen

Robert Tiffen joins Ellisons as Partner in growing Norwich office

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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