Copley v. Northwestern Mutual Life Insurance Co.

295 F. Supp. 93, 1968 U.S. Dist. LEXIS 9697
CourtDistrict Court, S.D. West Virginia
DecidedJuly 23, 1968
DocketCiv. A. 2436
StatusPublished
Cited by4 cases

This text of 295 F. Supp. 93 (Copley v. Northwestern Mutual Life Insurance Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Copley v. Northwestern Mutual Life Insurance Co., 295 F. Supp. 93, 1968 U.S. Dist. LEXIS 9697 (S.D.W. Va. 1968).

Opinion

CHRISTIE, District Judge:

This case was originally instituted in the Circuit Court of Cabell County, West Virginia, and was removed to this court on the basis of diversity of the parties and requisite amount in controversy, pursuant to the provisions of 28 U.S.C.A. Section 1441 et seq. We are presently concerned with defendant Retail Credit Company’s motion to dismiss, made pursuant to Rule 12(b) of the Federal Rules of Civil Procedure, wherein it is alleged that as to it, the complaint fails to state a claim upon which relief can be granted.

I

FACTUAL BACKGROUND

The facts of the present case, as distilled from the well-pleaded allegations in the plaintiffs’ complaint, may be summarized as follows:

The defendant insurance company sold plaintiffs life insurance policies in February of 1968. At the time, plaintiffs were informed that an investigation would be necessary in order to verify certain factual information given in connection with the policies, however, Northwestern assured plaintiffs that any *95 information divulged as a result of this investigation would be “strictly confidential and * * * delivered only to the insurance company.” Retail Credit Company was engaged by the insurance company to make the investigation and shortly thereafter its agents visited plaintiffs, advising them that they were there to gather information concerning plaintiffs’ business in behalf of Northwestern Mutual. Plaintiffs provided the agents with the requested information only after receiving assurance that the “information would not be released to any persons other than the insurance company.” It is alleged that shortly thereafter Retail Credit Company “informed plaintiffs’ competitors of said information,” despite the fact that they had previously agreed not to do so. Plaintiffs complain that this divulging of information “breached the confidential and fiduciary relationship between the plaintiffs and defendants and constituted a breach of plaintiffs’ right to privacy.” In the alternative plaintiffs complain that the Retail Credit Company disclosed the confidential material to their competitors “willfully, maliciously, knowing full well that at the time” such information was solicited it was not necessary for the procuring of life insurance policies.

In this action plaintiffs rest their claim upon two alternative theories, the first of which involves an alleged invasion of privacy; the second involves a wrongful disclosure of information concerning plaintiffs’ business allegedly given in confidence. It is the Retail Credit Company’s contention that, even assuming the truth of the allegations in the complaint, plaintiffs have failed, under the applicable law, to state a claim upon which relief can be granted. Thus, assuming for the purposes of this motion the truth of the allegations contained in the complaint, we now turn to the question of whether plaintiffs have under either theory stated a claim upon which relief can be granted. In view of the fact that our jurisdiction rests upon the diversity of citizenship of the parties, it is to the law of the state of West Virginia that we must look to determine the issues raised by Retail Credit Company in its motion. Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938).

II

THE RIGHT OF PRIVACY AND THE INVASION THEREOF

In their complaint, plaintiffs allege that the communication of the “facts and statistics concerning their business” to competitors constituted an invasion or “breach” of their “rights to privacy.” Retail Credit Company contends that no such “right” attaches to this type of information and that plaintiffs cannot, therefore, complain of an invasion of the same.

While the right of privacy is of relatively recent origin, it has been recognized and upheld in the majority of jurisdictions which have been called upon to decide the question. West Virginia is among the jurisdictions which have recognized this right and, under the proper circumstances, would presumably afford a remedy to one complaining of an invasion of such right. Roach v. Harper, 143 W.Va. 869, 105 S.E.2d 564 (1958). However, the protection of the right of privacy afforded by the law is primarily designed to protect personal feelings and sensibilities rather than business or pecuniary interests, and accordingly such protection has been denied when asserted by corporations, partnerships or other institutional bodies. 41 Am.Jur. Privacy, Section 15 (1942); Rosenwasser v. Ogoglia, 172 App.Div. 107, 158 N.Y.S. 56 (1916); Oasis Nite Club, Inc. v. Diebold, Inc., 261 F.Supp. 173 (D.C.Md.1966). In this action, plaintiffs have alleged only a disclosure of “facts and statistics concerning their business.” Such disclosure relating only to private matters of a business nature is not subject to the protection contemplated by the right of privacy as it has been developed by the courts. Accordingly, that portion of plaintiffs’ complaint *96 against Retail Credit Company alleging a “breach of privacy” must be dismissed for failure to state a claim upon which relief can be granted. However, in view of the remarks made in plaintiffs’ brief that certain portions of the information disclosed related to personal rather than business matters, this dismissal as to Retail Credit Company is made without prejudice and with leave to the plaintiffs to amend the complaint to conform with the requirements outlined above for stating a cause of action for invasion of privacy if it be determined the facts warrant it.

Ill

DISCLOSURE OF CONFIDENTIAL INFORMATION

In addition to the alleged invasion of privacy, plaintiffs assert in their complaint the disclosure in confidence of “facts and statistics concerning their business” to agents of Retail Credit Company and the subsequent communication of this information by Retail Credit Company to plaintiffs’ competitors. As Retail Credit Company has pointed out in its brief, no West Virginia cases have been found discussing the question of whether or not a cause of action is afforded under West Virginia law for the disclosure of business information, given in confidence, to competitors or rivals. Nevertheless, this absence of applicable state law does not require us to dismiss plaintiffs’ complaint. Rather it requires us to determine the rule which the West Virginia Supreme Court “would probably follow” if called upon to decide the question initially. Lowe’s North Wilkesboro Hardware, Inc. v. Fidelity Mutual Life Insurance Company, 319 F.2d 469 (4th Cir. 1963).

Under the view adopted by the American Law Institute in its Restatement of the Law of Torts, Section 757, a cause of action lies against one,

“ * * * who discloses or uses another’s trade secret, without a privilege to do so * * * if
******
“his disclosure or use constitutes a breach of confidence reposed in him by the other in disclosing the secret to him * *

Free access — add to your briefcase to read the full text and ask questions with AI

Related

MBA Inc. v. VNU Amvest, Inc. (In Re MBA Inc.)
38 B.R. 671 (E.D. Virginia, 1984)
Christman v. American Cyanamid Co.
578 F. Supp. 63 (N.D. West Virginia, 1983)
Garland v. True Temper Corp.
354 F. Supp. 328 (S.D. West Virginia, 1973)
Peacock v. Retail Credit Company
302 F. Supp. 418 (N.D. Georgia, 1969)

Cite This Page — Counsel Stack

Bluebook (online)
295 F. Supp. 93, 1968 U.S. Dist. LEXIS 9697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/copley-v-northwestern-mutual-life-insurance-co-wvsd-1968.