Pine Environmental Services, LLC v. Carson

43 F. Supp. 3d 71, 2014 U.S. Dist. LEXIS 115892, 2014 WL 4185502
CourtDistrict Court, D. Massachusetts
DecidedAugust 20, 2014
DocketCivil Action No. 14-cv-12830-IT
StatusPublished
Cited by1 cases

This text of 43 F. Supp. 3d 71 (Pine Environmental Services, LLC v. Carson) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pine Environmental Services, LLC v. Carson, 43 F. Supp. 3d 71, 2014 U.S. Dist. LEXIS 115892, 2014 WL 4185502 (D. Mass. 2014).

Opinion

DISTRICT OF MASSACHUSETTS

TALWANI, District Judge.

I. Introduction

This case presents the issue of whether a laptop computer, previously used in interstate commerce, is a “protected computer” under the Computer Fraud and Abuse Act (“Act”), 18 U.S.C. § 1030, et seq., even when the laptop computer is not being used in interstate commerce. As set forth below, the court finds that such a laptop is not a “protected computer” under the Act, and that in the absence of this federal claim, the court lacks subject matter jurisdiction over Plaintiffs claims and Defendants’ counterclaims.

II. Background

Plaintiff Pine Environmental Services, LLC (“Pine”), a New Jersey company, provides rental environmental equipment to other businesses in the United States. 1st Am. Compl. ¶ 1[# 16] [hereinafter Am. Compl.]. On November 6, 2012, Defendant Charlene Carson (“Carson”), a Massachusetts resident, recommenced employment with Pine. Id. ¶¶ 3,13. In June 2013, Pine [73]*73provided Carson with a Pine-owned laptop (the “Laptop”). Id. ¶ 16. Pine alleges that while employed at Pine, Carson used the Laptop to communicate and maintain information regarding numerous customers and/or customer locations with which Pine was engaged in interstate commerce. Id. ¶ 122.

Carson’s last day of employment was February 19, 2014. Id. ¶¶ 23-24. After leaving Pine, Carson went to work for Palms Environmental and Survey, LLC (“Palms”), a Massachusetts company that is a competitor of Pine. See id. ¶¶ 4, 5, 26.

Carson did not return the Laptop to Pine on her last day of work. Id. ¶ 25. On the evening of April 17, 2014, Carson’s roommate, Steven Ficoeiello, observed Carson in their shared apartment working on the Laptop. See id. ¶¶ 34-35. Ficociel-lo left the room, and when he returned, Carson had left the Laptop behind with a note requesting that Ficoeiello return the Laptop to Pine. Id. ¶ 35. Ficoeiello did so, and subsequently, a Pine employee discovered that customer-related files had been accessed on Carson’s computer on April 17, 2014. See id. ¶¶ 37-39.

Pine performed a forensic analysis of the Laptop and determined that at 10:12 p.m. on April 17, 2014, a software program called CCleaner was installed on the Laptop. See id. ¶¶ 44-45. CCleaner is designed to delete files, temporary files, event logs, Registry entries, internet browsing history, and cookies. Id. ¶ 45. CCleaner can clean out the Recycle Bin, Recent Docs, and other operating system files. Id. CCleaner revealed that it had been used on April 17, 2014 to destroy data and files, the internet browsing history, and event log entries on the Laptop. Id. ¶¶ 46, 48, 51.

On July 1, 2014, Pine filed its original complaint against Defendants and a motion for a preliminary injunction. The complaint alleged, inter alia, misappropriation of trade secrets, tortious interference with contractual and advantageous business relationships, breach of contract, and a violation of the Computer Fraud and Abuse Act, 18 U.S.C. § 1030 et seq. Despite the federal claim, Pine listed diversity as the only the basis for subject matter jurisdiction. In response, Defendants filed a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1). Pine then filed an amended complaint, citing both federal question and diversity jurisdiction. Defendants filed a second motion to dismiss the amended complaint under Rule 12(b)(1) and (b)(6). Palms also filed a counterclaim alleging abuse of process and seeking declaratory relief.

Presently at issue are Defendants’ Motion to Dismiss Plaintiffs First Amended Complaint Pursuant to Fed.R.Civ.P. 12(b)(1) and (b)(6) [# 20] and Pine’s Motion for Preliminary Injunction [# 2] and Motion to Strike Portion of Affidavit of Joseph Dwndin [# 35].

III. Discussion

Federal courts are courts of limited jurisdiction and hence have the duty to examine their own authority to preside over the cases assigned. “It is black-letter law that a federal court has an obligation to inquire sua sponte into its own subject matter jurisdiction.” McCulloch v. Vélez, 364 F.3d 1, 5 (1st Cir.2004) (citation omitted); see also Am. Fiber & Finishing, Inc. v. Tyco Healthcare Grp., LP, 362 F.3d 136, 138 (1st Cir.2004); Bonas v. Town of North Smithfield, 265 F.3d 69, 73 (1st Cir.2001) (“Federal courts are courts of limited jurisdiction, and therefore must be certain that they have explicit authority to decide a case.” (citation omitted)). If jurisdiction is questioned, the party asserting it has the burden of establishing that subject matter jurisdiction exists. E.g., [74]*74Gibbs v. Buck, 307 U.S. 66, 72, 59 S.Ct. 725, 83 L.Ed. 1111 (1939); McCulloch, 364 F.3d at 6.

A. Diversity Jurisdiction

Diversity jurisdiction exists if a case is between citizens of different states and the amount in controversy exceeds $75,000. 28 U.S.C. § 1332. The party asserting jurisdiction must allege “with sufficient particularity facts indicating that it is not a legal certainty that the claim involves less than the jurisdictional amount.” Dep’t of Recreation & Sports of P.R. v. World Boxing Ass’n, 942 F.2d 84 (1st Cir.1991) (citing Gibbs, 307 U.S. at 72, 59 S.Ct. 725). If the opposing party questions the amount in controversy, the plaintiff may meet this burden by amending the pleadings or by submitting affidavits. Abdel-Aleem v. OPK Biotech LLC, 665 F.3d 38, 42 (1st Cir.2012) (citing Dep’t of Recreation & Sports, 942 F.2d at 88).

Here, the requirement of diverse citizenship is met: Pine is a New Jersey company, and Defendants are Massachusetts residents. The amount in controversy requirement, however, is not met. In their Rule 12(b)(1) motion to dismiss the original complaint, Defendants argued that Pine had failed to demonstrate that the amount in controversy was met. See Defs.’ Fed.R.Civ.P. Rule 12(b)(1) Mot. Dismiss Lack Jurisdiction [# 13]. Pine was thus on notice that it “needed to show some basis for the amount of damages” it claimed. Abdel-Aleem, 665 F.3d at 42. But with regard to the amount in controversy, the amended complaint states only: “the amount in controversy exceeds $75,000.” Am. Compl. ¶ 6.

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43 F. Supp. 3d 71, 2014 U.S. Dist. LEXIS 115892, 2014 WL 4185502, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pine-environmental-services-llc-v-carson-mad-2014.