Understanding Contract Claims in Data Breach Lawsuits

Contract Claims Fall Within Data Breach

Some of the claims you can make in a data breach lawsuit fall under the umbrella of contract law. The propriety of these claims depends on a number of factors because in most contract law claims, you will only be able to recover damages for the financial losses that you incurred as a result of the data breach. You will not be able to recover damages for noneconomic damages such as pain and suffering. This is significant because the recovery for noneconomic damages in a data breach lawsuit can be substantial. Just think for a moment about the emotional toll that having your identity stolen would have on your life and the amount of money it would take to adequately compensate you for that loss, and you can imagine why bringing a claim where you could not recover for those losses would be significant. 

At the same time, however, contract law claims do allow you to recover financial losses, and thus, in some cases, these claims are appropriate. Some of the most common contract-law claims brought in data breach lawsuits are breach of an express contract and breach of an implied contract. 

Data Breach Lawsuits for Breach of Contract and Breach of an Implied Contract. 

In most instances where personal information is transmitted, some type of a contract has usually formed between the parties, either expressly or based on the circumstances surrounding the transmission of the sensitive information. This often occurs particularly when there are “terms and conditions” that you have agreed to when executing the transaction. As such, your data breach attorney will undoubtedly evaluate whether the facts surrounding the data breach could support a breach-of-contract claim. 

To prevail in a breach of contract action, you will have to prove that 1) a valid contact formed, 2) a material breach occurred, and 3) you incurred damages. Grove Isle Ass'n, Inc. v. Grove Isle Assocs., LLLP, 137 So. 3d 1081, 1094 (Fla. Dist. Ct. App. 2014). The distinction between a traditional contract and an implied-in-fact contract becomes significant when you are proving whether a valid contract formed because the process differs between how an implied-in-fact contract forms and how a traditional or express contract forms. To show that a traditional contract formed, you must prove that there was an offer, acceptance, and consideration, SCG Harbourwood, LLC v. Hanyan, 93 So. 3d 1197, 1200 (Fla. Dist. Ct. App. 2012), whereas an implied-in-fact contract is formed when there is “a tacit promise, one that is inferred in whole or in part from the parties' conduct, not solely from their words,” Com. P'ship 8098 Ltd. P'ship v. Equity Contracting Co., 695 So. 2d 383, 385 (Fla. Dist. Ct. App. 1997), as modified on clarification (June 4, 1997). Thus, since “[a] contract implied in fact is not put into promissory words with sufficient clarity,” by arguing that an implied-in-fact contract formed, you are asking a court to “examine and interpret . . . [the] conduct [of each party] to give definition to their unspoken agreement.” Id. 

Legal Distinctions in Florida Data Breach

These legal distinctions become significant when your Florida data breach attorney is evaluating your claim because the specific facts concerning how your information was transmitted will determine which contract-law claim is appropriate. For example, if the terms and conditions you agreed to included a promise that the vendor would store and protect your information, a breach of contract claim alleging a traditional or express contract might be appropriate, but if the terms and conditions only indicated how your information would be used and thus, the storing and protection of your data is merely inferred from the agreement, a breach of contract claim alleging an implied-in-fact contract might be appropriate. But since the propriety of a particular claim is fact specific, you should always have a data breach attorney evaluate your claim and provide the attorney with as much information as possible during the evaluation.

Data Breach Attorney in Florida 

The Peck Law Firm, P.A. has been assisting clients with their legal matters for years, and our data breach attorney is ready to discuss  your data breach lawsuit today. So, if you have had your private information stolen after a data breach or exposure, contact the Peck Law Firm, P.A. today to see if  a data breach attorney can help you!!