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ARTICLE · 07 AUGUST 2020

A Cautionary Tale: Employee Misconduct Creates Employer Liability

Consider this scenario: An employee steals co-workers' personal information and uses it in an attempt to blackmail his employer, threatening to release it publicly unless a ransom is paid.

CanadaLitigation, Mediation & Arbitration

Consider this scenario: An employee steals co-workers' personal information and uses it in an attempt to blackmail his employer, threatening to release it publicly unless a ransom is paid. Who's stuck with the liability in this story? You may be surprised.

Grossman v. Nissan is a class action in which the representative plaintiffs are Nissan employees whose personal information was used by their co-worker (who has never been identified and is therefore referred to as the "unknown employee") in his blackmail scheme. It appears very little information was stolen and none was released to third parties.

However, the plaintiffs claimed four causes of action against Nissan: (a) vicarious liability for the unknown employee's intrusion upon their seclusion (effectively a breach of their privacy); (b) breaches of provincial privacy statutes; (c) negligence; and (d) breach of contract. They indicated that, if certification of the vicarious liability claim was successful,

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