Managing Speculative Claims Following A Data Breach

• Published date: 08 November 2021
• Subject Matter: Privacy, Data Protection
• Law Firm: Shepherd and Wedderburn LLP
• Author: Mr Matthew Phillip

Increased public awareness of data protection regulations has sparked a rise in claims for damages associated with distress caused by data breaches. Many claims are made in response to serious breaches that have caused financial loss or significant distress, however organisations are increasingly receiving significant financial claims for relatively minor breaches. In the recent decision of Rolfe and others v Veale Wasbrough Vizards LLP [2021] EWHC 2809 (QB), the High Court confirmed that awards for trivial claims will not only be refused, but may result in adverse costs orders.

The right to compensation for distress

Article 82 of the GDPR and section 169 of the Data Protection Act 2018 give individuals a right to receive compensation for damage suffered due to a breach of data protection legislation. Previously a right to compensation was only available if an individual could show that they had suffered financial loss. However, the decision in Vidal-Hall v Google Inc [2015] EWCA Civ 311 and section...