June 07, 2021

About the Author

  • Doug Tait

    Doug Tait is an experienced business lawyer focusing on corporate and commercial matters with an emphasis on information security.

    (204) 934-2440

When it comes to legal services, an ounce of prevention really is a pound of cure.

Reducing unnecessary legal spend

While our litigators make a living litigating, they all advise their clients to be proactive in order to avoid disputes, because the cost of going to court is so high.

Cyber security and data protection is no different. In fact, the 2019 total average cost (both direct and indirect) of a data breach in the U.S. was 8.2 million. While the Canadian figures are not likely as high as in the U.S., the total average cost of a data breach in Canada still exceeds $4,000,000.

So how can businesses, crown corporations, municipalities and other organizations reduce unnecessary legal spend?

By proactively developing plans and policies related to cyber security, data protection and privacy law. The costs (legal, IT, and others) associated with developing these plans and polices should be viewed as an investment and not an expense. The reason being, the potential return on investment from avoiding significant government fines, class action lawsuits and crippling brand damage, easily covers the costs of preventing a breach in the first place. For organizations doing business in the European Union (EU) and/or the United States (U.S.), the potential risks and costs are of course higher, due to GDPR in the EU and CCPA in the U.S.

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This article is presented for informational purposes only. The content does not constitute legal advice or solicitation and does not create a solicitor client relationship. The views expressed are solely the authors’ and should not be attributed to any other party, including Thompson Dorfman Sweatman LLP (TDS), its affiliate companies or its clients. The authors make no guarantees regarding the accuracy or adequacy of the information contained herein or linked to via this article. The authors are not able to provide free legal advice. If you are seeking advice on specific matters, please contact Keith LaBossiere, CEO & Managing Partner at kdl@tdslaw.com, or 204.934.2587. Please be aware that any unsolicited information sent to the author(s) cannot be considered to be solicitor-client privileged.

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