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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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MOVERS & SHAKERS

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

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NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
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