Lonestar Communications Corporation LLC v Daniel Kaye & Anor

Lonestar Communications Corporation LLC v Daniel Kaye & Anor

The Individual Defendants are liable to Lonestar under the action of damages for wrong for orchestrating and executing DDOS attacks in breach of s.76 of the Liberian Telecommunications Act 2007. Orange Liberia and Cellcom BVI are vicariously liable for the acts of Mr Marziano and Mr Polani, who were employees acting within the scope of their employment. The losses caused by the DDOS attacks are quantified as $3,602,349 in lost profits and $707,738.36 in unnecessary expenditure. Exemplary damages of $170,000 are awarded against Mr Marziano. Orange Liberia is entitled to 100% contribution from the Individual Defendants and 50% from Cellcom BVI. Limitation and mitigation defences fail....

Parties
Claimant: Lonestar Communications Corporation LLC; First Defendant: Daniel Kaye; Second Defendant: Avishai Marziano; Third Defendant: Cellcom Telecommunications Limited; Fourth Defendant: Ran Polani; Fifth Defendant: Orange Liberia, Inc
Jurisdiction
England and Wales
Judgment Date
28 February 2023
Procedural Posture
Commercial Tort Claim (cyber Attack, Vicarious Liability, Damages) / Final Judgment After Trial
Outcome
Judgment for the Claimant against all Defendants (except as to exemplary damages, which are only against Mr Marziano).
Legal Topics
Vicarious Liability, Damages for Wrong, Exemplary Damages, Breach of Statutory Duty, Cybercrime, Limitation of Actions, Contribution Between Tortfeasors
Tort Law Conflict of Laws Telecommunications Law Employment Law Vicarious Liability Damages for Wrong Exemplary Damages Breach of Statutory Duty +3 more

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Parties

Lonestar Communications Corporation LLC

Claimant

Daniel Kaye

First Defendant

Avishai Marziano

Second Defendant

Cellcom Telecommunications Limited

Third Defendant

Ran Polani

Fourth Defendant

Orange Liberia, Inc

Fifth Defendant

Procedural Posture

Commercial Tort Claim (cyber Attack, Vicarious Liability, Damages) / Final Judgment After Trial

Legal Issues

  1. 1 Whether the Individual Defendants are liable in tort for orchestrating DDOS attacks against the Claimant under Liberian law
  2. 2 Whether Orange Liberia and/or Cellcom BVI are vicariously liable for the acts of the Individual Defendants
  3. 3 What damages (compensatory and exemplary) are recoverable by the Claimant

Ratio Decidendi

The Individual Defendants are liable to Lonestar under the action of damages for wrong for orchestrating and executing DDOS attacks in breach of s.76 of the Liberian Telecommunications Act 2007. Orange Liberia and Cellcom BVI are vicariously liable for the acts of Mr Marziano and Mr Polani, who were employees acting within the scope of their employment. The losses caused by the DDOS attacks are quantified as $3,602,349 in lost profits and $707,738.36 in unnecessary expenditure. Exemplary damages of $170,000 are awarded against Mr Marziano. Orange Liberia is entitled to 100% contribution from the Individual Defendants and 50% from Cellcom BVI. Limitation and mitigation defences fail....

Court Disposition

Judgment for the Claimant against all Defendants (except as to exemplary damages, which are only against Mr Marziano).

Orders

  • Lonestar to recover $3,602,349 in lost profits and $707,738.36 in unnecessary expenditure from all Defendants jointly and severally.
  • Exemplary damages of $170,000 awarded against Mr Marziano.