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ARTICLE · 15 JANUARY 1998

E-Mail - Addressing The Legal Risks

Andersen Legal
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United KingdomMedia, Telecoms, IT, Entertainment
The recent case of Western Provident Association v. Norwich Union Healthcare and Norwich Union Life Insurance which saw Norwich Union paying out £450,000 in out of court settlement costs for an e-mail libel claim by Western Provident has highlighted the serious legal risks facing businesses in the use of e-mail and the need for clear internal policy guidelines for staff using a company's e-mail system.

The Norwich Union case arose out of the spreading of rumours by Norwich Union employees through its internal e-mail system that its competitor, Western Provident, was in financial difficulties and was being investigated by the Department of Trade and Industry. Along with the settlement payment of £450,000, Norwich Union also had to make a statement in court saying that it "now accepts that this was wrong - that there was no truth in any of the allegations".

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