Texas Small Businesses Facing Lawsuits Due to Data Breaches
In today's digital age, the protection of personal data has become a critical concern. If a small business fails to institute reasonable safeguards to protect your personal data, they can be held legally accountable. This article outlines the steps you can take to pursue a lawsuit against a Texas small business following a data breach.
A Trusted Partner in Data Breach Litigation
Federman & Sherwood, a renowned data breach law firm based in Texas, offers free initial consultations with their experienced data breach lawyers. With a 50-state practice and offices in Texas and Oklahoma, they are well-equipped to help data breach victims navigate the complexities of the legal system.
Multiple Legal Theories for Pursuing a Lawsuit
Data breach lawsuits against Texas small businesses may proceed under multiple legal theories, seeking damages such as out-of-pocket losses, consequential damages, emotional distress, attorney's fees, and punitive damages. Here are the three main legal theories you can use:
Negligence Claim
Plaintiffs can argue that the business failed in its duty to protect their personal data by not implementing reasonable cybersecurity measures or delayed notification of the breach. This includes allegations such as gross negligence or failing to follow industry standards and state laws on data protection and breach notification.
Breach of Contract Claim
If there is a contractual relationship with the business—such as terms of service promising data security or confidentiality agreements—plaintiffs can allege breach of contract or breach of implied duties arising from those contracts, such as a failure to protect data as promised.
Texas Deceptive Trade Practices Act (DTPA) Claim
The DTPA prohibits false, misleading, or deceptive acts in trade or commerce. A plaintiff can claim the business engaged in deceptive or unfair practices by misrepresenting their data protection policies or failing to disclose vulnerabilities, resulting in consumers being harmed by the breach.
Filing the Lawsuit
- Prepare a Complaint: Clearly state allegations under each legal theory with supporting facts (e.g., nature of the breach, delays, contract terms, deception).
- File the Complaint: File the complaint in State or Federal Court depending on the amount in controversy and parties involved.
- Seek Remedies: Monetary damages for losses and emotional distress, injunctive relief requiring improved data security, punitive damages to deter negligence, and extended identity theft protection.
Practical Considerations
- It is often advisable to consult an attorney experienced in data breach and consumer protection law to evaluate claims and jurisdiction.
- Class action lawsuits may be possible if many individuals are affected.
- Texas law requires timely action, so be mindful of statutes of limitations for negligence, breach of contract, and DTPA claims (generally 2-4 years).
Summary Table
| Legal Theory | Basis of Claim | Key Requirements | Possible Remedies | |---------------------------|-----------------------------------------|---------------------------------|------------------------------------| | Negligence | Failure to protect data; breach of duty | Duty, breach, causation, damages | Monetary damages, punitive damages | | Breach of Contract | Violation of contract terms on data | Valid contract, breach, damages | Monetary damages, specific performance | | Texas Deceptive Trade Practices Act (DTPA) | Misleading or deceptive practices related to data protection | Misrepresentation/deception and harm | Monetary damages, attorney fees, injunctive relief |
In conclusion, if you have been harmed by a small business data breach in Texas, you have the legal right to pursue claims under negligence, contract, and the DTPA. By demonstrating the business’s failure to protect data, breach of commitments, or deceptive practices that caused harm, you can seek compensatory and injunctive relief.
If a business's deceptive practices are found, they would need to pay damages, and if they were knowing, they may owe treble damages. You can speak with an experienced data breach lawyer at Federman & Sherwood to discuss your case. If there are not numerous victims similarly situated to you, there is a higher chance that you would file an individual lawsuit following a data breach from a small business.
You can contact Federman & Sherwood by filling out an online contact form or calling them at (800) 237-1277. Victimized consumers may be eligible for financial compensation following a data breach. You can sue a small business under various legal theories, such as common law negligence or breach of contract. Hackers often target small businesses because they may not invest enough resources to protect sensitive data. Texas small businesses can be sued under the Texas Deceptive Trade Practices Act for data breaches that involve false and deceptive practices. An experienced data breach litigation lawyer at Federman & Sherwood can represent consumers. Consumers in Texas can sue companies following data breaches.
Data privacy in the industry, especially in finance and business, is crucial, and in the event of a small business data breach, victims in Texas have the legal right to pursue claims under negligence, contract, and the Texas Deceptive Trade Practices Act (DTPA). A renowned data breach law firm like Federman & Sherwood offers free initial consultations with experienced data breach lawyers to help victims navigate the complexities of the legal system.
