Master criticises 50k costs in 3k data claim

Details: 25 November 2021

Master Thornett has criticised the level of costs in a 'very modest' data breach claim. In Johnson v Eastlight Community Homes Ltd [2021] EWHC 3069 (QB), the Claimant had sought over £50,000 including £15,000 of incurred costs and had suggested a two-day trial in the case where it is also making additional claims for alleged breaches under Article 8 ECHR, GDPR, the Data Protection Act as well as injunctive relief, the latter of which the master described as 'misconceived'

In his judgment, Master Thornett said the claim was factually straightforward. The Claimant is a tenant of the Defendant who requested her rent statement, which was inadvertently circulated to one-third party, who immediately notified the Defendant, and the emails were deleted. The Defendant admitted the breach, apologised, and reported the matter to the Information Commissioners Office.
The suggestion by the Claimant that this was a developing area of the law was dismissed by the master, who said he saw no basis for issuing such a claim that comes nowhere close to the £100,000 plus High Court value requirement under PD7A paragraph 2.1. He went on to say:

'Everything about this case has all of the hallmarks of a Small Claim Track claim that should have been issued in the County Court and so allocated. The suggestion that this is a developing area of law or where, even if the principle is established, requires an elaborate and complex legal argument is unrealistic if not, at least arguably, opportunistic.
Countless examples could be found daily in virtually every County Court in this jurisdiction where limited time and resources and the requirements of the overriding objective combine to oblige the pragmatic and proportionate application of the legal principle. The lure of adopting a more elaborate and expensive approach just because the subject matter can so permit is simply unacceptable. Put bluntly, the garment must be cut according to the cloth. So, accordingly, is potentially complex law applied proportionately in lower value claims in a way compatible to the limited resources those cases justify.
The only reason why the claim has been subject to a detailed legal argument is because the Defendant is appropriately concerned to defend resolutely a claim brought in the High Court where the future costs and time to be incurred by a social housing client would always be grossly in excess of the matter in dispute and with little clear prospect of recovery even if successful. Clearly, the Defendant in raising such a challenge, also has to act proportionately. However, the Claimant can hardly complain if the Defendant's response has been contextually proportionate to the very venue chosen by the Claimant in which to litigate.'

The Claimant's solicitors, Pure Legal went into administration on 2 November 2021.

Details: 25 November 2021

Master Thornett has criticised the level of costs in a 'very modest' data breach claim. In Johnson v Eastlight Community Homes Ltd [2021] EWHC 3069 (QB), the Claimant had sought over £50,000 including £15,000 of incurred costs and had suggested a two-day trial in the case where it is also making additional claims for alleged breaches under Article 8 ECHR, GDPR, the Data Protection Act as well as injunctive relief, the latter of which the master described as 'misconceived'

In his judgment, Master Thornett said the claim was factually straightforward. The Claimant is a tenant of the Defendant who requested her rent statement, which was inadvertently circulated to one-third party, who immediately notified the Defendant, and the emails were deleted. The Defendant admitted the breach, apologised, and reported the matter to the Information Commissioners Office.
The suggestion by the Claimant that this was a developing area of the law was dismissed by the master, who said he saw no basis for issuing such a claim that comes nowhere close to the £100,000 plus High Court value requirement under PD7A paragraph 2.1. He went on to say:

'Everything about this case has all of the hallmarks of a Small Claim Track claim that should have been issued in the County Court and so allocated. The suggestion that this is a developing area of law or where, even if the principle is established, requires an elaborate and complex legal argument is unrealistic if not, at least arguably, opportunistic.
Countless examples could be found daily in virtually every County Court in this jurisdiction where limited time and resources and the requirements of the overriding objective combine to oblige the pragmatic and proportionate application of the legal principle. The lure of adopting a more elaborate and expensive approach just because the subject matter can so permit is simply unacceptable. Put bluntly, the garment must be cut according to the cloth. So, accordingly, is potentially complex law applied proportionately in lower value claims in a way compatible to the limited resources those cases justify.
The only reason why the claim has been subject to a detailed legal argument is because the Defendant is appropriately concerned to defend resolutely a claim brought in the High Court where the future costs and time to be incurred by a social housing client would always be grossly in excess of the matter in dispute and with little clear prospect of recovery even if successful. Clearly, the Defendant in raising such a challenge, also has to act proportionately. However, the Claimant can hardly complain if the Defendant's response has been contextually proportionate to the very venue chosen by the Claimant in which to litigate.'

The Claimant's solicitors, Pure Legal went into administration on 2 November 2021.