July 28, 2010

N.Y. Federal Court to Hear Negligence Suit Against Domain Name Service

by Mark Hamblett
New York Law Journal

A provider of internet traffic routing services can be sued for gross negligence for enabling a hacker to gain access to the account of one of its clients, a federal judge has ruled.

Southern District Judge Denny Chin said that Register.com has to defend a suit for gross negligence or recklessness despite the fact that its client agreed to use its services "entirely" at its own risk, was responsible for maintaining the security of its account, and agreed to a limitation of liability clause.

The reason, Chin said in Baidu Inc. v. Register.com, 10 Civ. 444, was that Register.com "did undertake to provide web site security and established protocols for doing so," and the attack by the hacker was "reasonably foreseeable."

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