New Developments in Law Firms' Obligations To Protect Against Data Breaches
In addition to a 2018 ABA ethics opinion which outlines when law firms are ethically obligated to notify clients of data breaches jeopardizing the security of their confidential information, the California Bar Association has handed down additional guidance on the subject, which is helpful to all law firms.
January 15, 2021 at 11:00 AM
9 minute read
In 2018, the American Bar Association Standing Committee on Ethics issued its Formal Opinion 18-483, which outlines a framework for when law firms are ethically obligated to notify clients of data breaches jeopardizing the security of their confidential information. In its ethics opinion, the ABA noted that law firms should employ reasonable efforts to monitor the security of their information, and advised lawyers to "act reasonably and promptly to stop the breach and mitigate damage from the breach." Law firms should, as a matter of professional responsibility, have data breach plans in place in order to remediate cyber intrusions.
In addition, the committee wrote that, "an obligation exists for a lawyer to communicate with current clients about a data breach." However, not all cyber episodes require client notification. While a cyber intrusion which does not gain access to client confidential information needn't be disclosed, "disclosure will be required if material client information was actually or reasonably suspected to have been accessed, disclosed or lost in a breach."
The California State Bar Association, in September 2020, has handed down additional guidance on the subject, which is helpful to all law firms, especially those who represent California clients. California State Bar Formal Opinion No. 2020-203 answers the question, "What are a lawyer's ethical obligations with respect to unauthorized access by third persons to electronically stored confidential information in the lawyer's possession?" In its opinion, the California State Bar writes that law firms should take reasonable steps to secure their electronic data storage systems to minimize the risk of unauthorized access to client confidential information, and should provide for remote lockdown and scrubbing in the event a portable device is lost or compromised. In the event of a breach, "lawyers have an obligation to conduct a reasonable inquiry to determine the extent and consequences of the breach and to notify any client whose interests have a reasonable possibility of being negatively impacted by the breach."
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