Data Breach Claims and Cost Recovery

Costs Associated with Data Breach Claims

Upon successful resolution of a data breach claim, the Defendants bear the responsibility of covering the Claimant Solicitor’s legal fees and disbursements. Handling costs in data breach claims can pose significant challenges due to their intricate nature. Many of these cases entail complex evidence and causation issues, further complicating the cost management process.

Group action claims for data protection breaches are frequently encountered. Given their potentially large scale, often involving thousands of Claimants, the process of cost recovery can be particularly arduous.

What Makes DMD Costs the Ideal Choice for Recovering Your Data Breach Claim Costs?

DMD Costs has assembled a dedicated in-house team to optimize the recovery of your data breach claim costs.

We specialize in securing interim payments amounting to at least 50% of your incurred costs in the initial stages of a dispute, with most claims resolving within 1 – 2 months after the Bill is served. In cases contested to a detailed assessment hearing, we typically secure 70% of the claimed costs as an interim payment on account, ensuring uninterrupted funding for your other cases.

What Is Eligible for Recovery?

CPR 47 PD 5.12 offers guidance on the heads of legal costs recoverable in data breach claims and other inter-partes cases.

Legal costs can typically be recovered at an hourly rate for all work related to the claim, as detailed in the CFA or retainer. While guideline rates are often used as a starting point during assessment, adjustments may be made to account for inflation since the rates were last set in 2010. Enhancement of rates is particularly likely for complex claims. Certain costs, such as funding costs (e.g., setting up the retainer/CFA), are unrecoverable, and discussions between fee earners can only be claimed in complex cases.

Disbursements, including Counsel fees, expert fees, and Court fees, are all recoverable and should be itemized in your Bill of Costs.

Data Breach Compensation Claim

In today's digital era, data breaches are increasingly prevalent occurrences. The leakage of sensitive information such as personal data, bank details, and credit card information can lead to identity theft and financial harm if it falls into the wrong hands. Unauthorized access or theft of an individual's data can cause significant stress, anxiety, and concern.

When a company or organization fails to uphold its legal obligation to protect an individual's data, the affected person has the right to pursue legal action. Regardless of whether a data breach stems from human error, negligence, or cybercrime, the victim may seek compensation for the breach of data protection. Claims for data protection remain valid even if the Claimant hasn't experienced financial losses.

Under data protection laws, individuals can seek compensation for any form of loss, damage, or distress resulting from a data breach. The Data Protection Act 2018 and the General Data Protection Regulation (GDPR) empower victims to claim data breach compensation, often provided by specialized solicitors on a no-win, no-fee basis.

How Can We Be of Service?

It's advisable to seek specialized legal costs guidance from the outset of your claim. At DMD Costs, we offer advice on structuring your retainer/CFA correctly and estimate the hourly rates likely to be recoverable during the assessment of your data breach claims costs.

Our involvement may be necessary throughout the claim process, particularly before any Costs and Case Management Conference (CCMC), where a Precedent H Costs Budget will need preparation and negotiation (Precedent R). Ensuring the accuracy of your Costs Budget is crucial for maximizing costs recovery during assessment. Upon conclusion of the data breach claim, we will aid in negotiating the recovery of your outstanding fees following the preparation of the Bill of Costs.

Additionally, our Costs Draftsmen and Costs Lawyers assist paying parties in negotiating any Bill of Costs and conducting the detailed assessment process, whether for the paying or receiving party. We can draft Precedent G Points of Dispute or Points of Reply in advance and provide representation at any detailed assessment hearing.

Our Approach to Achieving Your Desired Outcomes

Our leadership team consistently oversees the caliber of our work. We attain our objectives by prioritizing the excellence of our output rather than the volume produced monthly.