Courtroom Restricts Hiscox's Privateness Litigation With Regulation Agency – Enterprise Insurance
Hiscox Ltd. A federal court ruled that a law firm cannot sue a law firm for breach of duty of loyalty in addition to professional negligence in a cyberattack case from 2017 and 2018.
Other allegations by Hiscox against Warden Grier LLP, a Kansas City, Missouri, law firm with which it has contracted for reporting and litigation monitoring, may be made, according to a judgment in the U.S. District Court for the western Missouri district on Wednesday to be tried in Kansas City.
According to the judgment in Hiscox Insurance Co. Inc. and Hiscox Syndicates Ltd. v. Warden Grier LLP, through a cyber attack on the law firm, obtained personal information from customers of Hiscox's corporate insurers.
A group called The Dark Overlord first hacked Warden Grier in February 2017 and threatened to reveal their details unless the law firm paid a ransom. Warden Grier paid the ransom but did not inform Hiscox of the violation, the verdict said.
A year later, the hackers issued an additional ransom note and notified Hiscox of the violation. Two days later, Hiscox contacted Warden Grier about the violation and the law firm confirmed it was hacked, court records say.
Hiscox then hired various experts to help the company manage its potential risks from the breach. The costs incurred by the insurer included $ 1.1 million to a company that analyzed the injured data, $ 276,859 to another law firm, $ 107,456 to a public relations consultant, and $ 6,189 to Dollars at a call center.
Hiscox sued Warden Grier for breach of duty of loyalty and due diligence. Warden Grier requested a summary judgment, arguing that Hiscox must show that it was legally required to conduct an analysis of the individuals who needed to be informed of the violation; that Hiscox has not established that the injury was directly causing the harm to Hiscox; and that the insurer's fiduciary claim should be included in its professional negligence claim.
The court ruled that under Missouri law, "Hiscox's claim to professional negligence must include his right to breach of duty".
However, the other motions filed by Warden Grier were denied with the court ruling that the case should be decided by a jury.