Lonestar Communications Corporation LLC v Kaye & Ors [2023] EWHC 421 (Comm) (28 February 2023)

Lonestar Communications Corporation LLC v Kaye & Ors [2023] EWHC 421 (Comm) (28 February 2023)

The court found that the Individual Defendants (Kaye, Marziano, Polani) were liable in tort under Liberian law for orchestrating the DDOS attacks against Lonestar. However, Orange Liberia was not vicariously or otherwise liable for their actions under the applicable legal principles. The court determined that Lonestar was entitled to compensatory damages for proven business loss directly attributable to the DDOS attacks, but not to exemplary damages. The quantum of damages was assessed based on reliable contemporaneous evidence, not on Lonestar's overstated claims.

Citation
[2023] EWHC 421 (Comm)
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 Court Claim (tort/cyber Attack/damages) / Final Judgment After Trial
Outcome
Claim allowed in part; Individual Defendants found liable in tort; Orange Liberia not liable; compensatory damages awarded; exemplary damages refused.
Legal Topics
Vicarious Liability, Exemplary Damages, Compensatory Damages, Jurisdiction, Foreign Law (liberian Law), Cyber Attacks (ddos), Evidence (expert and Factual)
Tort Law Cyber Law Private International Law Commercial Law Vicarious Liability Exemplary Damages Compensatory Damages Jurisdiction +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 Court Claim (tort/cyber Attack/damages) / Final Judgment After Trial

Legal Issues

  1. 1 Whether the Individual Defendants are liable in tort for orchestrating DDOS attacks against Lonestar under Liberian law
  2. 2 Whether Cellcom BVI and/or Orange Liberia are vicariously or otherwise liable for the actions of the Individual Defendants
  3. 3 What damages (compensatory and exemplary) Lonestar is entitled to recover

Ratio Decidendi

The court found that the Individual Defendants (Kaye, Marziano, Polani) were liable in tort under Liberian law for orchestrating the DDOS attacks against Lonestar. However, Orange Liberia was not vicariously or otherwise liable for their actions under the applicable legal principles. The court determined that Lonestar was entitled to compensatory damages for proven business loss directly attributable to the DDOS attacks, but not to exemplary damages. The quantum of damages was assessed based on reliable contemporaneous evidence, not on Lonestar's overstated claims.

Court Disposition

Claim allowed in part; Individual Defendants found liable in tort; Orange Liberia not liable; compensatory damages awarded; exemplary damages refused.

Orders

  • Judgment for Lonestar against the Individual Defendants for compensatory damages (quantum specified below)
  • Claim against Orange Liberia dismissed