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Intrusion Upon Seclusion
The New Privacy Tort and Your
Workplace

Joint HR/Legal Presentation
February 15, 2012
John Bruce and Dan Michaluk
Invasion of Privacy

•   U.S. and U.K. courts have recognized torts
•   Canadian courts more cautious to date
•   Privacy interests protected under other torts –
    defamation, nuisance, trespass
•   Four provinces with limited statutory torts
•   Misappropriation of personality tort (Ontario, 70s)
•   Now, “intrusion upon seclusion” tort recognized


The Privacy Tort and Your Workplace
Jones v. Tsige

•   Bank employee snoops on other bank employee’s
    banking records
•   Bank disciplines defendant, plaintiff sues
•   Motion judge dismiss – no cause of action
•   Court of Appeal recognizes tort, awards $10,000
    in damages




The Privacy Tort and Your Workplace
Jones v. Tsige

     One who intentionally intrudes, physically or otherwise, upon the seclusion of
     another or his private affairs or concerns, is subject to liability to the other for
     invasion of privacy, if the invasion would be highly offensive to a reasonable
                                          person.



1.   Intentional, unauthorized intrusion
2.   Upon private affairs or concerns
3.   Highly offensive to the reasonable person




The Privacy Tort and Your Workplace
What the Tort Is

•   A personal tort
•   Scope will reflect competing interests (free
    expression, freedom of the press)
•   No proof of damages required, but non-pecuniary
    damages ordinarily no more than $20,000
•   Court signals “highly offensive” relates to
    sensitivity of information (e.g., financial records,
    sexual practices and orientation, employment)

The Privacy Tort and Your Workplace
What the Tort Is Not

•   About intentional disclosure of private information
•   About asking for information (as employers do)
•   A rule that governs the exclusion of evidence




The Privacy Tort and Your Workplace
Impact on Corporate Data Security

•   Risks driven by pre-existing duties
     •   Breach of direct “supervisory” or “custodial” duty
         based in negligence, fiduciary status, contract
     •   Reasonable safeguarding duty under legislation
     •   Are vicarious liability claims a practical risk?
     •   Employee snooping is a known, common risk that
         you should address through access control
         technology and well enforced policy


The Privacy Tort and Your Workplace
Impact on Computer Monitoring

•   Things are changing… very quickly
     •   R. v. Cole raises questions about a reasonable
         expectation of privacy arising out of personal use
     •   SCC will hear an appeal this year
     •   Tsige suggests that breaching a reasonable
         expectation of privacy is not enough
     •   But don’t be a test case



The Privacy Tort and Your Workplace
Impact on Computer Monitoring
1.   Articulate purpose for which you may access stored information
2.   Make sure conditions tied to personal use are clear
3.   Claim your interest in the entire system, including devices issued to
     employees
4.   Make clear that access controls are employed for the company’s
     benefit
5.   Make clear that passwords are to foster user accountability and are
     for the company’s benefit
6.   Deal with access to forensic information
7.   Ban work on personal devices unless you develop a “BYOD” policy
     that manages the risks



The Privacy Tort and Your Workplace
Employer Surveillance and Investigations

•   Other potential intrusions?
     •   Desk searches
     •   Locker searches
     •   Bag searches
     •   In-plant/facility video surveillance
     •   Surveillance outside the plant/facility




The Privacy Tort and Your Workplace
Private Investigation Retainers

•   An obvious risk that you ought to address
•   Structure the decision to retain
     •   Reasonable grounds?
     •   Who decides?
•   Structure the retainer
     •   Authorized means? Unauthorized means?
     •   Requirements (e.g., video only in public)
     •   Indemnification for breach

The Privacy Tort and Your Workplace
Investigations and Litigation

•   Expect the tort to be plead where your cause case
    rests on an investigation
•   Expect claims from family members
•   On the positive side, it’s an option for structuring
    settlement payments for better tax treatment




The Privacy Tort and Your Workplace
Intrusion Upon Seclusion
The New Privacy Tort and Your
Workplace

Joint HR/Legal Presentation
February 15, 2012
John Bruce and Dan Michaluk

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Privacy tort and your workplace

  • 1. Intrusion Upon Seclusion The New Privacy Tort and Your Workplace Joint HR/Legal Presentation February 15, 2012 John Bruce and Dan Michaluk
  • 2. Invasion of Privacy • U.S. and U.K. courts have recognized torts • Canadian courts more cautious to date • Privacy interests protected under other torts – defamation, nuisance, trespass • Four provinces with limited statutory torts • Misappropriation of personality tort (Ontario, 70s) • Now, “intrusion upon seclusion” tort recognized The Privacy Tort and Your Workplace
  • 3. Jones v. Tsige • Bank employee snoops on other bank employee’s banking records • Bank disciplines defendant, plaintiff sues • Motion judge dismiss – no cause of action • Court of Appeal recognizes tort, awards $10,000 in damages The Privacy Tort and Your Workplace
  • 4. Jones v. Tsige One who intentionally intrudes, physically or otherwise, upon the seclusion of another or his private affairs or concerns, is subject to liability to the other for invasion of privacy, if the invasion would be highly offensive to a reasonable person. 1. Intentional, unauthorized intrusion 2. Upon private affairs or concerns 3. Highly offensive to the reasonable person The Privacy Tort and Your Workplace
  • 5. What the Tort Is • A personal tort • Scope will reflect competing interests (free expression, freedom of the press) • No proof of damages required, but non-pecuniary damages ordinarily no more than $20,000 • Court signals “highly offensive” relates to sensitivity of information (e.g., financial records, sexual practices and orientation, employment) The Privacy Tort and Your Workplace
  • 6. What the Tort Is Not • About intentional disclosure of private information • About asking for information (as employers do) • A rule that governs the exclusion of evidence The Privacy Tort and Your Workplace
  • 7. Impact on Corporate Data Security • Risks driven by pre-existing duties • Breach of direct “supervisory” or “custodial” duty based in negligence, fiduciary status, contract • Reasonable safeguarding duty under legislation • Are vicarious liability claims a practical risk? • Employee snooping is a known, common risk that you should address through access control technology and well enforced policy The Privacy Tort and Your Workplace
  • 8. Impact on Computer Monitoring • Things are changing… very quickly • R. v. Cole raises questions about a reasonable expectation of privacy arising out of personal use • SCC will hear an appeal this year • Tsige suggests that breaching a reasonable expectation of privacy is not enough • But don’t be a test case The Privacy Tort and Your Workplace
  • 9. Impact on Computer Monitoring 1. Articulate purpose for which you may access stored information 2. Make sure conditions tied to personal use are clear 3. Claim your interest in the entire system, including devices issued to employees 4. Make clear that access controls are employed for the company’s benefit 5. Make clear that passwords are to foster user accountability and are for the company’s benefit 6. Deal with access to forensic information 7. Ban work on personal devices unless you develop a “BYOD” policy that manages the risks The Privacy Tort and Your Workplace
  • 10. Employer Surveillance and Investigations • Other potential intrusions? • Desk searches • Locker searches • Bag searches • In-plant/facility video surveillance • Surveillance outside the plant/facility The Privacy Tort and Your Workplace
  • 11. Private Investigation Retainers • An obvious risk that you ought to address • Structure the decision to retain • Reasonable grounds? • Who decides? • Structure the retainer • Authorized means? Unauthorized means? • Requirements (e.g., video only in public) • Indemnification for breach The Privacy Tort and Your Workplace
  • 12. Investigations and Litigation • Expect the tort to be plead where your cause case rests on an investigation • Expect claims from family members • On the positive side, it’s an option for structuring settlement payments for better tax treatment The Privacy Tort and Your Workplace
  • 13. Intrusion Upon Seclusion The New Privacy Tort and Your Workplace Joint HR/Legal Presentation February 15, 2012 John Bruce and Dan Michaluk