Small business owners in Texas find themselves embroiled in litigation due to data breaches
Suing a Small Business in Texas for a Data Breach: What You Need to Know
In today's digital age, data breaches have become a growing concern for consumers. If your personal data has been compromised due to a data breach from a small business in Texas, you may have the right to take legal action. Here's what you need to know.
Legal Theories for Holding Small Businesses Accountable
When suing a small business for a data breach, the most common legal theories include:
- Negligence: If the business failed to exercise reasonable care in protecting your sensitive data, such as not implementing adequate cybersecurity measures or encryption.
- Breach of Contract or Breach of Duty: If the business made explicit promises or implied commitments, like privacy policies or security assurances, to protect your information but failed to uphold them.
- Violation of State Data Breach Notification Laws: Texas law requires businesses to notify affected individuals timely after a breach. Delays or failures in notification can give rise to legal claims.
- Invasion of Privacy or Related Common Law Claims: When sensitive personal information is exposed unlawfully due to the business’s failure to safeguard it.
- Potential Statutory Claims under Privacy Laws: Although Texas does not have a broad private right of action under laws like the California Consumer Privacy Act (CCPA), some lawsuits use related state or federal statutes depending on the breach's circumstances.
Seeking Remedies
If you succeed in your lawsuit, you may be entitled to various remedies, including:
- Monetary damages for losses or emotional distress caused by the breach.
- Punitive damages to punish egregious or reckless behavior.
- Injunctive relief requiring the business to implement stronger data security practices.
- Extended identity theft protection services for affected consumers.
Filing a Lawsuit
To file a lawsuit against a small business in Texas for a data breach, you typically start by gathering evidence of the breach and the harm caused, then file a complaint in the appropriate state or federal court alleging that the business failed to protect your personal information adequately.
Consulting a Lawyer
Given the complexities of data breach litigation, it's strongly advised to consult with a privacy or cybersecurity litigation attorney to navigate procedural and substantive legal requirements. An experienced data breach litigation lawyer can help review your legal rights and determine whether you're in a position to file or join a lawsuit.
Note
- Individuals do not have a private right of action to file a lawsuit against a small business in Texas under the new data security law.
- Federman & Sherwood, with offices in Texas and Oklahoma, maintains a 50-state practice helping data breach victims.
- You may be able to sue a small business for breach of contract if they have failed to fulfill their specific data protection obligations.
- Hackers often target small businesses because they do not invest sufficient resources in data security.
In the realm of suing small businesses for data breaches in Texas, potential legal theories could involve demonstrating negligence in data protection, breach of contract or duty, violation of state data breach notification laws, invasion of privacy, or statutory claims under privacy laws based on the specific circumstances of the breach.
If successful in a lawsuit, remedies may include monetary damages for losses and emotional distress, punitive damages, injunctive relief, and extended identity theft protection services for affected consumers. To initiate legal action, gathering evidence of the breach and its impact is essential, followed by filing a complaint in the appropriate court, which often requires advice from a privacy or cybersecurity litigation attorney due to the intricacies of such cases.
