Richard Stehl and Richard G. Haddad v. James M. Cretella

CourtDistrict Court, D. Connecticut
DecidedFebruary 27, 2026
Docket3:25-cv-00348
StatusUnknown

This text of Richard Stehl and Richard G. Haddad v. James M. Cretella (Richard Stehl and Richard G. Haddad v. James M. Cretella) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard Stehl and Richard G. Haddad v. James M. Cretella, (D. Conn. 2026).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT --------------------------------------------------------------- x RICHARD STEHL and RICHARD G. HADDAD, : : Plaintiffs, : : v. : 25-CV-348 (SFR) : JAMES M. CRETELLA, : : Defendant. : --------------------------------------------------------------- x

MEMORANDUM & ORDER

Plaintiffs Richard Stehl and Richard Haddad are senior partners at Otterbourg, P.C., a New York law firm. They bring this action against their former colleague, Defendant James Cretella, asserting a single claim of intrusion upon seclusion under Connecticut common law. This Opinion resolves Cretella’s Motion to Dismiss the First Amended Complaint (ECF No. 35). Because I agree that New York law applies pursuant to choice-of-law principles, and New York does not recognize the tort of intrusion upon seclusion, I grant the Motion to Dismiss with leave for Plaintiffs to replead a claim of intentional infliction of emotional distress. I. BACKGROUND A. Factual Background I accept as true the following facts from the First Amended Complaint (“FAC”), ECF No. 31. Plaintiff Richard L. Stehl is Chairman of the Board of Directors of Otterbourg. FAC ¶ 26. Plaintiff Richard G. Haddad is President of Otterbourg. Id. ¶ 27. Defendant James Cretella worked as an attorney at Otterbourg for twenty years, eventually rising to lead the firm’s finance department. Id. ¶¶ 5, 28. Stehl and Haddad both live and work in New York. Id. ¶¶ 26- 27. In contrast, Cretella lives in Connecticut. Id. ¶ 28. The FAC alleges that Otterbourg’s computer system was “configured to allow attorneys to store personal files in individual directories.” Id. ¶ 6. Individual directories (which the FAC also describes as “personal directories,” id. ¶ 13, and “workspaces,” id. ¶¶ 7-9) “were

expressly designed to be accessible solely by the designated attorney.” Id. ¶ 8. Per the design, documents in the workspaces were configured to be automatically designated by the system as “private;” these files would then be “accessible only to the attorney to whom the workspace was assigned.” Id. ¶ 9.1 “If the attorney wanted to grant access to another person, they could do so by expressly authorizing access on a document-by-document basis.” Id. The FAC describes various security measures adopted by Otterbourg, including requiring users to regularly update their passwords, use multi-factor authentication, and log in after a period of

inactivity. Id. ¶¶ 10-12. The FAC says that, in light of these practices, Plaintiffs “had a reasonable expectation of privacy in their personal directories.” Id. ¶ 13. The FAC contends that Cretella deliberately circumvented these safeguards to view Plaintiffs’ personal files. The FAC alleges that Cretella “repeatedly accessed files in the dead of night.” Id. ¶ 35. “From his Connecticut home (and elsewhere),” id. ¶ 18, Cretella “initiated searches targeting and limited to Plaintiffs’ files,” id. ¶ 16. “Hundreds of times, Cretella

infiltrated files that were clearly labeled as personal and confidential.” Id. ¶ 34. The FAC states that Plaintiffs’ files were “stored in folders designed to be private with restricted access, yet Cretella found a way around those digital barriers.” Id. Although the FAC specifies that

1 The FAC does not allege that Plaintiffs’ files were actually designated as “private” or actually accessible only when authorization was provided. “Plaintiffs never granted [Cretella] access,” id., it does not describe how Cretella circumvented Otterbourg’s controls to gain access to Plaintiffs’ files, see id. The FAC states that Cretella gained access to numerous sensitive and personal files

belonging to Plaintiffs, including the medical records for one plaintiff’s family member, multiple years of Plaintiffs’ personal tax returns, employment agreements negotiated between Otterbourg and other firm employees, communications between one plaintiff and his personal attorney concerning a family matter, and security codes for one plaintiff’s home surveillance system. Id. ¶¶ 19, 37-44. Cretella allegedly used “forensic evasion tactics,” such as previewing files rather than downloading them in their native format, “to try to avoid leaving a trail.” Id. ¶ 47. The FAC also maintains that another Otterbourg partner accessed Plaintiffs’ sensitive

files, which “suggests a coordinated effort to exploit Plaintiffs’ private data” between Cretella and this unnamed colleague. Id. ¶¶ 16, 48. The FAC alleges that Cretella had no “legitimate reason to access these files.” Id. ¶ 49. It posits that Cretella undertook these searches to gain leverage against Otterbourg’s leadership, id. ¶ 46, and to “cause substantial harm to Plaintiffs and their families, id. ¶ 55. In doing so, the FAC states that Cretella transgressed the “legal and ethical boundaries” expected

of any licensed attorney. Id. ¶¶ 20, 22. The FAC brings a single cause of action for intrusion upon seclusion, seeking actual, compensatory, and punitive damages. Id. ¶¶ 51-63. B. Procedural History Plaintiffs filed a Complaint on March 10, 2025. ECF No. 1. Cretella moved to dismiss the Complaint on April 10, 2025. ECF No. 29. Plaintiffs responded by amending as of right on April 23, 2025. FAC, ECF No. 31. Cretella filed a renewed Motion to Dismiss directed at the FAC on May 7, 2025. Def.’s Mot. to Dismiss FAC, ECF No. 35; Def.’s Mem. of L. in Supp. of Mot. to Dismiss FAC (“Def.’s Mem.”), ECF No. 35-1. Plaintiffs responded in opposition on May 28, 2025. Pls.’ Mem. in Opp. to Def.’s Mot. to Dismiss FAC (“Pls.’

Mem.”), ECF No. 42. Cretella replied in support of his Motion on June 11, 2025. Def.’s Reply Mem. in Supp. of Mot. to Dismiss FAC (“Def.’s Reply”), ECF No. 46. Over Plaintiffs’ opposition, I stayed discovery on July 18, 2025. ECF No. 52. Cretella filed a Notice of Supplemental Authority on November 20, 2025, ECF No. 53, which Plaintiffs responded to on November 21, 2025, ECF No. 54.2 Cretella filed a Notice of Supplemental Authority on February 9, 2026. ECF No. 58. Plaintiffs filed a Notice of Supplemental Authority on February 10, 2026. ECF No. 59.

I heard oral argument on the Motion to Dismiss on February 13, 2026. ECF No. 63; see also Tr. of Oral Argument on Feb. 13, 2026 (“Tr.”), ECF No. 62. II. LEGAL STANDARD A. Rule 12(b)(1) A district court must grant a motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(1) “when the court lacks the statutory or constitutional power to adjudicate it.” Luckett v. Bure, 290 F.3d 493, 496 (2d Cir. 2002) (citation and internal quotation marks omitted). “It is well- settled that the ‘plaintiff bears the burden of proving subject matter jurisdiction by a

preponderance of the evidence.’” Matthias v. United States, 475 F. Supp. 3d 125, 133 (E.D.N.Y. 2020) (quoting Aurecchione v. Schooman Transp. Sys., Inc., 426 F.3d 635, 638 (2d

2 The Notice of Supplemental Authority alerted me that Otterbourg has filed a separate action against Cretella in New York state court for breach of the Otterbourg shareholder agreement and other business torts. ECF No. 53. Cir. 2005). Although the court “must accept as true all material factual allegations in the complaint,” a court should not “draw inferences from the complaint favorable to plaintiff[s].” J.S. ex rel. N.S. v. Attica Cent. Sch., 386 F.3d 107, 110 (2d Cir. 2004). “In resolving the

question of jurisdiction, the district court can refer to evidence outside the pleadings.” Student Members of Same v. Rumsfeld, 321 F. Supp. 2d 388, 392 (D. Conn.

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Richard Stehl and Richard G. Haddad v. James M. Cretella, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-stehl-and-richard-g-haddad-v-james-m-cretella-ctd-2026.