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The court limits Hiscox's dispute over data breaches with the law firm



Hiscox Ltd. can not sue a law firm for breach of confidentiality beyond professional negligence in a case arising from cyberattacks in 2017 and 2018, a federal court ruled.

Other allegations by Hiscox Grier LLP Warden, a Kansas City, Missouri-based law firm that it contracted with for coverage cases and litigation monitoring, can go to trial, according to a decision on Wednesday by the U.S. District Court of the Western District of Missouri in Kansas City.

According to the judgment of Hiscox Insurance Co. Inc. and Hiscox Syndicates Ltd. v. Warden Grier LLP Hackers obtained personally identifiable information about customers of Hiscox corporate policyholders through a cyberattack on the law firm.

A group. known as The Dark Overlord first hacked Warden Grier in February 201

7 and threatened to publish its data unless the law firm paid a ransom. Warden Grier paid the ransom but did not notify Hiscox of the intrusion, the verdict says.

A year later, the hackers made an additional demand for redemption and told Hiscox about the intrusion. Two days later, Hiscox contacted Warden Grier about the intrusion and the law firm confirmed that it had been hacked, court documents say.

Hiscox then hired various experts to help it deal with its potential intrusions arising from the intrusion. Costs incurred by the insurer included $ 1.1 million paid to a company that analyzed the breached information, $ 276,859 paid to another law firm, $ 107,456 paid to a public relations consultant, and $ 6,189 paid to a call center.

Hiscox sued Warden Grier for a foul. duty of care and duty of care. Warden Grier requested a summary judgment, arguing that Hiscox must show that it had a legal obligation to conduct an analysis of individuals who needed to be informed of the violation; that Hiscox failed to show that the intrusion immediately caused Hiscox damage; and that the insurer's claim of trust should be included in its claim for negligence.

The Court held that under the Missouri Act "Hiscox's claim for negligence must include its claim for insurance failure."

The other motions filed by Warden Grier . , but was denied by the court's decision that the case would be decided by a jury.


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