FROM BYTES TO BACKFIRE: THE PERILS OF DIGITAL COMMUNICATION
Online forms of communication are now ubiquitous in a digitalised world. The widespread adoption of smartphones, high-speed internet and cloud computing has facilitated seamless connectivity and access to information, changing the way in which we live, work and do business.
The coronavirus (COVID-19) pandemic also moved much of the world online as employers and employees adopted work from home measures, accelerating the trend of companies conducting more of their business virtually. It is therefore unsurprising that an increasing number of communications are being handled by business organisations through a wide variety of digital communication channels such as WhatsApp, Microsoft Teams, and Skype for Business. This has allowed business organisations to communicate more quickly and efficiently.
At the same time, however, the availability and increased use of instantaneous means of communication, and the informality of many of the channels used, has inevitably led to an increase in the volume of communications recorded digitally and, in many cases, a decrease in the level of care taken in those communications, even in the context of very significant business transactions.
That might not matter 99 percent of the time. However, companies cannot forget about the 1 percent of instances when a business transaction goes sour, when there is a clash between contractual counterparties or when parties need to bring formal legal proceedings to enforce their rights. Businesspeople very often communicate without appreciation of that 1 percent, and without awareness that what they write online will often form the most fertile source of evidence in any legal proceedings.
This article explores how the use of digital communications can have unintended yet significant legal consequences in a commercial dispute context and highlights the importance of taking steps within organisations to ensure that these tools and platforms can be used effectively and in a manner which minimises risk.
Oct-Dec 2023 issue
Ashurst LLP