NRA Group LLC v. Nicole Durenleau

CourtCourt of Appeals for the Third Circuit
DecidedAugust 26, 2025
Docket24-1123
StatusPublished

This text of NRA Group LLC v. Nicole Durenleau (NRA Group LLC v. Nicole Durenleau) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NRA Group LLC v. Nicole Durenleau, (3d Cir. 2025).

Opinion

PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT ____________

No. 24-1123 ____________

NRA GROUP, LLC

v.

NICOLE DURENLEAU; JAMIE BADACZEWSKI _________________________________________________

NICOLE DURENLEAU

NRA GROUP, LLC; STEVE KUSIC; SHELL SHARMA _________________________________________________

JAMIE BADACZEWSKI

NRA GROUP, LLC; STEVE KUSIC

NRA GROUP, LLC,

Appellant ____________________________________________

Appeal from the United States District Court for the Middle District of Pennsylvania (District Court No. 1:21-cv-00715) District Judge: Honorable Jennifer P. Wilson ____________________________________________

Argued on January 22, 2025 Before: HARDIMAN, McKEE, and AMBRO, Circuit Judges

(Opinion filed: August 26, 2025)

Ivo J. Becica OBERMAYER REBMANN MAXWELL & HIPPEL 1500 Market Street Centre Square West, 34th Floor Philadelphia, PA 19102

Jennifer Bruce Paige Macdonald-Matthes (Argued) OBERMAYER REBMANN MAXWELL & HIPPEL 200 Locust Street Suite 400 Harrisburg, PA 17101

Counsel for Appellant

Cory A. Iannacone (Argued) PILLAR AUGHT 4201 E Park Circle Harrisburg, PA 17111

Counsel for Appellees

2 OPINION OF THE COURT

AMBRO, Circuit Judge In the wrong hands, the law becomes a hammer in search of a nail. This is one such case. While employed with the debt-collection firm National Recovery Agency (NRA), Nicole Durenleau was out sick. She urgently needed a work document, but she had no way to access it. Her friend and colleague, Jamie Badaczewski, logged in to Durenleau’s computer from the office, accessed the document—a spreadsheet with Durenleau’s passwords—and emailed it to Durenleau. She did so with Durenleau’s express permission, but the pair’s actions, including Durenleau’s creation of the spreadsheet, breached workplace computer-use policies. Separately, over several years, Durenleau altered work files in a manner that credited her for performance bonuses. Evidence shows she did so believing she was eligible for the bonuses. All the while, the women allege, they were subject to persistent sexual harassment at NRA. (One executive even slapped Durenleau.) They filed internal complaints. Eventually, Durenleau resigned, naming the harassment as the reason, and Badaczewski was fired soon after. Just weeks later, NRA went on the offensive. It sued the women under federal and state law for computer fraud, theft of trade secrets, civil conspiracy, breach of fiduciary duty, and common-law fraud. The women answered with federal- and

3 state-law counterclaims for sexual harassment, retaliation, and a hostile work environment. On cross-motions for summary judgment, the District Court entered judgment for Durenleau and Badaczewski on all claims against them, staying their remaining sexual- harassment claims against NRA pending this appeal. We affirm the District Court in full. In doing so, we hold for the first time that, (a) by its text and purpose, the Computer Fraud and Abuse Act, 18 U.S.C. § 1030, does not turn these workplace-policy infractions into federal crimes, and (b) passwords that protect proprietary business information are not themselves trade secrets under federal or Pennsylvania law.

I. BACKGROUND

This sprawling appeal covers several chapters in the history of a long-soured workplace. We will move through each. But as the main issue centers on the violation of some workplace computer-use policies, we start there. Through its debt-collection operations, NRA holds volumes of personally identifiable information1 (PII) about individual debtors. To comply with federal privacy laws, it has “developed and implemented comprehensive written data protection and computer use policies.” Opening Br. 11. These data-protection practices are layered. NRA’s systems are protected by digital firewalls. Employees can

1 “Information”—like a consumer’s name, address, social security number, or email address—“that can be used to distinguish or trace an individual’s identity, either alone or when combined with other information that is linked or linkable to a specific individual.” Guidance on the Protection of Personally Identifiable Information, U.S. Dep’t of Labor, https://www.dol.gov/general/ppii [https://perma.cc/WGS9- 7RFP] (July 18, 2025).

4 access the systems only when they are physically present in NRA’s offices or by using a company-issued laptop and virtual private network (VPN) for remote access. (That VPN connection requires additional authentication.) Employees cannot access NRA’s systems through any personal or mobile devices, but they may access their NRA email accounts on their cell phones. A related set of strict policies sets out NRA employees’ rights and responsibilities. Several are relevant here: • Employees are forbidden from sharing credentials and passwords; • Employees may not “attempt to receive unintended messages or access information by any unauthorized means, including imitating another system, impersonating another user, or misus[ing] legal user credentials (usernames, passwords), etc.”; • Passwords “may not be stored in readable form . . . or in any location where unauthorized person[s] might discover them”; • Employees “must maintain exclusive control of their [IDs and passwords]” and “may not share [IDs] or passwords] with others . . . for any reason”; • Employees must “take appropriate measures to protect the security and integrity of non-public customer information” and may not “allow[] unauthorized use of computer terminals or access of customer files”; • An employee may not “access or request any information [she has] no responsibility for”; and • Employees may not “use company computer systems for personal use,” and an employee “caught using a company system for anything other than logging on . . . for collections purposes . . . will be terminated immediately.”

5 App. 2886–91 (cleaned up). Employees acknowledge and assent to all policies at hiring; after that, they annually review those governing system credentials and passwords. These policies bound Durenleau and Badaczewski during the events in question. We recount those next. A. While Durenleau was out sick, she and Badaczewski teamed up to solve a work problem. Durenleau was NRA’s Senior Manager of Compliance Services, and Badaczewski worked in marketing. Though apparently friends, the women did not work together or even in the same NRA office. Durenleau had COVID in January 2021, so she was out sick for more than a week. While home, she was not given a laptop to access the NRA systems from home, nor could she come to the office. She had access only to her work email through her personal phone. Soon she would ask Badaczewski for help on a pressing matter. 1. January 6, 2021: Badaczewski logged in to the NRA systems as Durenleau at the latter’s request. Despite her illness, Durenleau was attending to work matters on the morning of January 6. She asked her supervisor, Lisa Daube, to look through papers on Durenleau’s desk to see if anything needed attention. Daube found an urgent task: a letter from a Wyoming state agency, dated December 17, 2020, informing NRA that its state affiliate’s license had expired and had not been timely renewed. If NRA wished to renew the license without a hearing, it needed to submit a signed copy of the letter and pay a $250 fine through the Nationwide Multistate Licensing System & Registry (NMLS) within 20 days. The deadline was that day. This was concerning. Shortly after 9:00 a.m., Daube and Durenleau spoke on the phone to brainstorm a list of colleagues

6 with NMLS access who could pay the fine. NRA’s CEO, Steve Kusic, had access. So did Durenleau. Hours passed.

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