Texas Small Businesses Face Lawsuits Due to Data Breach Incidents
In the event of a data breach, consumers in Texas have the legal right to seek justice. This article outlines the steps to take when considering filing a lawsuit against a small business for a data breach under theories such as negligence, breach of contract, and the Texas Deceptive Trade Practices Act (DTPA).
Establish Legal Grounds
To successfully sue a small business for a data breach, you must establish legal grounds. This can be done by demonstrating negligence, breach of contract, or violations of the Texas DTPA.
- Negligence: Show that the business owed you a duty to protect your personal data, breached that duty by failing to implement reasonable data security, and caused you harm as a result.
- Breach of Contract: If you had a contract or agreement with the business (e.g., terms of service or privacy policy) that guaranteed protection of your data, you can allege breach of contract if the business failed to uphold those promises.
- Texas Deceptive Trade Practices Act (DTPA): This statute provides protection against false, misleading, or deceptive business practices. If the business misrepresented its data security practices or failed to disclose a breach, you may have a claim under the DTPA.
Gather Evidence
Collecting evidence is crucial to support your claims. Documentation such as contracts, privacy policies, communications with the business, and any evidence of the breach (e.g., breach notices, credit monitoring offers) should be gathered. Additionally, document the harm you suffered, such as identity theft, financial loss, or costs incurred to mitigate the breach.
Consult an Attorney
Given the complexity and legal requirements, it is advisable to consult a lawyer experienced in Texas data privacy and consumer protection law. They can assess your case’s strength and advise on the proper legal claims and procedures.
File the Lawsuit
Once you have assembled your evidence and consulted with an attorney, you can file your complaint in a Texas state court with proper jurisdiction. Include allegations for negligence, breach of contract, and violations of the DTPA. Clearly state the facts regarding the data breach and the resulting harm.
Potential Litigation Process
The case may involve discovery to obtain business records and evidence about their data security practices. The business may defend by contesting the breach, causation of harm, or applicability of the DTPA.
It is important to act promptly, as legal claims often have statute of limitations in Texas, generally two years for negligence and breach of contract claims. Small businesses in Texas can and are being sued for data breaches under these legal theories, reflecting growing enforcement and awareness of data privacy rights.
If you do not already have direct contractual relations with the business or cannot establish deception, negligence claims based on failure to protect personal data remain viable. The Texas DTPA can cover deceptive or unfair business practices related to data security disclosures.
Damages and Representation
Damages sought in such lawsuits may include out-of-pocket losses, consequential damages, emotional distress, attorney's fees, and punitive damages (if egregious conduct is proven). If you have a lawsuit against a business, Federman & Sherwood can represent you throughout the process.
Victimized consumers may be eligible for financial compensation after a data breach. Federman & Sherwood is an experienced data breach litigation law firm that maintains a 50-state practice helping data breach victims.
Important Considerations
If the deceptive practices were knowingly committed, the business may owe treble damages. Although Texas has a new data security law, individuals do not have a private right of action to sue a small business. Small businesses in Texas can be sued under the Texas Deceptive Trade Practices Act for data breaches that involve false and deceptive practices.
A hacker may target a small business because they do not invest in necessary data protection resources. In the event of a data breach, the small business is required to send a notification to the affected individuals. Data breach lawsuits against small businesses in Texas may proceed under multiple legal theories.
In conclusion, if you have been affected by a data breach, you have the right to seek legal recourse. By following the steps outlined above, you can take action against small businesses in Texas that fail to protect your personal data.
- If a small business, such as a casino-and-gambling establishment, fails to protect customer data effectively, causing a data breach that leads to identity theft or financial loss, you may have a claim under the Texas Deceptive Trade Practices Act (DTPA) for deceptive or unfair practices related to data security.
- Consumers in Texas who are victims of a data breach at a casino-and-gambling business can potentially file a lawsuit against the establishment to seek damages for harm suffered, such as out-of-pocket losses, consequential damages, emotional distress, attorney's fees, and even punitive damages if egregious conduct is proven.
