Seiu Healthcare Nw Training Partnership v. Evergreen Freedom Foundation

427 P.3d 688
Court of Appeals of Washington·Decided October 1, 2018·No. 76220-6·Published·Cited by 14 cases

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

SEIU HEALTHCARE NORTHWEST TRAINING PARTNERSHIP, a No. 76220-6-1 WashingtOn trust, DIVISION ONE

Respondent,

V.

EVERGREEN FREEDOM FOUNDATION, d/b/a FREEDOM PUBLISHED OPINION FOUNDATION, a Washington nonprofit organization, FILED: October 1, 2018

Petitioner.

BECKER, J. — Evergreen Freedom Foundation appeals from an order of replevin compelling the return of data belonging to respondent, SEIU Healthcare Northwest Training Partnership. We find no error. The trial court correctly determined that the replevin claim is not preempted by the Uniform Trade Secrets Act(UTSA), chapter 19.08 RCW,and is an appropriate remedy under the circumstances.

FACTS

The Partnership is a nonprofit organization that provides training to many Washington home care workers. These include individual providers whose training is funded by the State pursuant to a collective bargaining agreement with

the union for individual providers. The union, SEIU 775, is part of the Service Employees International Union. The State shares information with the Partnership about state-funded individual providers. The Partnership stores this data, along with other information about trainees, in a confidential electronic database The Foundation is a nonprofit organization that, among other things, endeavors to inform workers of their constitutional rights regarding financial support of public-sector unions. An opportunity to acquire contact information for individual providers arose in the spring of 2016. A former employee of the Partnership, Matthew Williams, had access to confidential records about thousands of trainees from the Partnership's internal database. He offered to sell this data to the Foundation. The Foundation paid Williams $12,000 for two

electronic spreadsheets stored on a flash drive. The Foundation copied and

I

downloaded the spreadsheets and the data they contained, including individual

contact information, into its electronic database. The Foundation used the records to notify individual providers that they had the right to opt out of financially supporting SEIU 775.

In August 2016, two flyers from the Foundation were delivered to the Partnership's office addressed to a name that existed in the Partnership's database only in connection with a mock file created as part of a training exercise for a new employee. The Partnership realized that the Foundation must have gained access to its database. The Partnership brought this suit, alleging a violation of the Uniform Trade Secrets Act and a claim for intentional interference

with business expectancy. Shortly thereafter, in a different lawsuit between the

Foundation and SEIU 775, Maxford Nelsen—the Foundation's CR 30(b)(6)

1 witness—testified that the Foundation had purchased records concerning

approximately 42,000 individual providers from a person he referred to as Confidential Source B. Although the Foundation refused to reveal the identity of Confidential Source B, the Partnership later learned through its own efforts that it was Williams.

The Partnership wrote to the Foundation demanding immediate return of all copies of the stolen records and the destruction of information derived from the stoleri database. The Foundation did not comply with this demand.

In September 2016, the Partnership amended its complaint to include a cause of action for replevin, seeking return of the spreadsheets.

Replevin is an ancient remedy for an ancient problem that can be phrased as "that's mine, give it back." Replevin has come down to us from medieval times as a summary process, arising "out of the need of a turbulent society to discourage resort to self-help." JOHN G. FLEMING,THE LAW OF TORTS 73(5th ed. 1977). Washington has had a replevin statute since the first legislative assembly of the Territory of Washington. LAWS OF 1854,§§ 100-110, at 149-52. Replevin is a special statutory proceeding "to determine title to, or right of possession of, personal property." Apgar v. Great Am. Indem. Co., 171 Wash. 494, 498, 18 P.2d 46 (1933). The prima facie elements are "ownership of the property, a right to its possession, a demand on the respondents for its surrender, their refusal to

surrender it, and their consequent wrongful detention of same." Page v. Urick, 31 Wash. 601, 603-04, 72 P.454 (1903).

In an action to recover the possession of personal property, the plaintiff "may claim and obtain the immediate delivery of such property." RCW 7.64.010. As the result of an amendment in 1979, the plaintiff must first apply for an order directing the defendant to appear and show cause why the court should not issue an order putting the plaintiff in possession of the personal property. RCW 7.64.020(1). Final judgment at a show cause hearing is permitted when the defendant raises no factual issues requiring a trial. RCW 7.64.035(3). In this respect, replevin is analogous to unlawful detainer, a summary proceeding designed for the purpose of hastening recovery of possession of real property. MacRae v. Way,64 Wn.2d 544, 546, 392 P.2d 827(1964).

The trial court held a show cause hearing and determined the Foundation had raised no issue of material fact and all of the elements of replevin were met. The court entered a written order of replevin on November 15, 2016. The court listed the following as facts that were undisputed at the hearing:

• The Foundation purchased copies of two spreadsheets containing information about the Training Partnership's students from Person B for $12,000;

• The Foundation knew the copies of spreadsheets came from the Training Partnership when it purchased them;

• The Training Partnership maintained the spreadsheets and the information contained therein as confidential;

• The Training Partnership treated the information in the spreadsheets as confidential pursuant to its Confidentiality Policy;

• Downloading information from the Training Partnership's database is not permitted under the Partnership's policies;

• The Training Partnership owns or has lawful possession of all of the information contained in its student database, and the Partnership never authorized the Foundation to own or possess any part of its student database;

• The Washington State Department of Social and Health Services owns some of the information in the Training Partnership's student database and authorizes the Training Partnership to use that information. The department never authorized the Foundation to own or possess its portion of the Training Partnership database;

• The value of the spreadsheets purchased by the Foundation from Person B is at least $12,000, the amount the Foundation paid for them; and

• The Foundation is able to identify and extract the information that was contained in the two spreadsheets from other information contained in its databases.

The court concluded that these facts supported a final judgment entitling the

Partnership to possession of all copies of the two spreadsheets and the information contained therein, in addition to all other remedies authorized by the replevin s atute. The Foundation was ordered to take various actions to comply with this ruling. The court rejected the Foundation's argument that the replevin claim was preempted by the Uniform Trade Secrets Act.

In December 2016, the Foundation filed a notice seeking discretionary review by this court. Discretionary review was granted under RAP 2.3(b)(4) based on the parties' stipulation.

ANALYSIS

1. The Uniform Trade Secrets Act does not preempt replevin The Uniform Trade Secrets Act codifies the basic principles of common law trade secret protection. Ed Nowogroski Ins., Inc. v. Rucker, 137 Wn.2d 427, 438, 971 P.2d 936 (1999). It permits injunctive relief and damages for "misappropriation" of "trade secrets." RCW 19.108.020, .030.

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Seiu Healthcare Nw Training Partnership v. Evergreen Freedom Foundation, 427 P.3d 688 (Wash. Ct. App. 2018).

427 P.3d 688 (Seiu Healthcare Nw Training Partnership v. Evergreen Freedom Foundation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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