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25 October 2018
Issue: 7814 / Categories: Legal News , Data protection
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Data leak wake-up call

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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MOVERS & SHAKERS

Jurit LLP—Caroline Williams

Jurit LLP—Caroline Williams

Private wealth and tax team welcomes cross-border specialist as consultant

Freeths—Michelle Kirkland Elias

Freeths—Michelle Kirkland Elias

International hospitality and leisure specialist joins corporate team as partner

Flint Bishop—Deborah Niven

Flint Bishop—Deborah Niven

Firm appoints head of intellectual property to drive northern growth

NEWS
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The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
A year after the $1.5bn Bybit heist, crypto fraud is booming—but so is recovery. Writing in NLJ this week, Neil Holloway, founder and CEO of M2 Recovery, warns that scams hit at least $14bn in 2025, fuelled by ‘pig butchering’ cons and AI deepfakes
After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
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