The claim requires a duty to safeguard data, breach of that duty, causation, and damages. Duty is contested where no statute imposes one, and the economic loss rule bars recovery in many jurisdictions.
Special relationship analysis affects duty.
Alternative Names:
Data Breach Negligence|Negligent Data Security
Why it Matters?
Duty and the economic loss rule are the threshold defenses, since many jurisdictions decline to recognize a common law duty to safeguard data absent a statute or special relationship, and the economic loss rule bars tort recovery for purely financial harm. Employee data cases fare better on duty than customer cases because the employment relationship supplies the connection. Both defenses precede any reasonableness inquiry into the security program.
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Frequently asked questions
What are the threshold defenses?
Why do employee cases fare better on duty?
