Tech Systems, Inc. v. Lovelen Pyles

630 F. App'x 184
CourtCourt of Appeals for the Fourth Circuit
DecidedNovember 18, 2015
Docket13-1359, 13-2098
StatusUnpublished
Cited by10 cases

This text of 630 F. App'x 184 (Tech Systems, Inc. v. Lovelen Pyles) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tech Systems, Inc. v. Lovelen Pyles, 630 F. App'x 184 (4th Cir. 2015).

Opinion

Affirmed by unpublished PER CURIAM opinion.

Unpublished opinions are not binding precedent in this circuit,

PER CURIAM:

Lovelen Pyles appeals the district court’s orders denying her motion under Fed.R.Civ.P. 50 for judgment as a matter of law and granting attorney’s fees in favor of Tech Systems, Inc. (“TSI”). Pyles asserts that the district court erred in denying her motion as to violations of the Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030 (2012); the Electronic Communications Privacy Act, 18 U.S.C. § 2701 (2012); and her breach of fiduciary duty. She also contends that the district court erred in instructing the jury on punitive damages and in granting TSI’s motion for attorney’s fees. We affirm.

I.

“We review de novo the legal conclusions upon which the district court’s denial *186 of judgment as a matter of law were premised.” Belk, Inc. v. Meyer Corp., U.S., 679 F.3d 146, 164 (4th Cir.2012). “If, viewing the facts in the light most favorable to the non-moving party, there is sufficient evidence for a reasonable jury to have found in [the non-moving party’s] favor, we are constrained to affirm the jury verdict.” Lack v. Wal-Mart Stores, Inc., 240 F.3d 255, 259 (4th Cir.2001).

A.

“Although the CFAA is primarily a criminal statute, it permits private parties to bring a cause of action to redress a violation of the CFAA----” A.V. ex rel. Vanderhye v. iParadigms, LLC, 562 F.3d 630, 645 (4th Cir.2009). The civil suit may be brought in limited circumstances by “[a]ny person who suffers damage or loss” as a result of a CFAA violation. 18 U.S.C. § 1030(g). As relevant here, the violation must have caused “loss to 1 or more persons during any 1-year period ... aggregating at least $5,000 in value.” 18 U.S.C. § 1030(c)(4)(A)(i)(I), (g). A person violates the CFAA by “intentionally accessing] a computer without authorization or exceeding] authorized access, and thereby obtaining] ... information from any protected computer,” 18 U.S.C. § 1030(a)(2)(C), or “intentionally accessing] a protected computer without authorization, and as a result of such conduct, causing] damage and loss,” 18 U.S.C. § 1030(a)(5)(C).

This court narrowly interprets the terms “without authorization” and “exceeds authorized access.” WEC Carolina Energy Sols., LLC v. Miller, 687 F.3d 199, 206 (4th Cir.2012). “[A]n employee ... accesses a computer ‘without authorization’ when [s]he gains admission to a computer without approval.” Id. at 204. “[A]n employee ‘exceeds authorized access’ when [s]he has approval to access a computer, but uses [her] access to obtain or alter information that falls outside the bounds of [her] approved access.” Id. “Notably, neither of these definitions extends to the improper use of information validly accessed.” Id.

Pyles argues that the CFAA did not apply to her actions during her employment with TSI because she, as the human resources director, had full access to the computer information. Under the WEC Carolina framework, we disagree. Pyles accessed both the main computer network and financial servers without authorization or in excess of her authority. Additionally, upon termination of her employment, Pyles accessed her corporate email account and company-issued Blackberry without authorization. Moreover, TSI demonstrated damage that resulted in losses from Pyles’ actions. Thus, there was sufficient evidence for a reasonable jury to have found in TSI’s favor.

B.

A person violates the ECPA by: “(1) intentionally accessing] without authorization a facility through which an electronic communication service is provided; or (2) intentionally exceeding] an authorization to access that facility; and thereby obtaining], altering], or preventing] authorized access to a wire or electronic communication while it is in electronic storage in such system.” 18 U.S.C. § 2701(a).

Pyles limits her ECPA challenge to whether she acted “without authorization” or “exceed[ed] [her] authorization” in accessing TSI’s computer system. * Pyles *187 contends not only that TSI granted her permission to access the computer system, but also that her actions did not go outside the bounds of that permission. We disagree.

Authorization is a matter of permission and dependent on its scope, not on whether information validly accessed was properly used. See WEC Carolina, 687 F.3d at 204. Here, although Pyles was permitted to use TSI’s email to carry out her duties as human resources manager, she was not authorized to access the server through which the email functioned in the manner she did here. Additionally, her authorization to access the Blackberry terminated with her employment. Thus, there was sufficient evidence for a reasonable jury to have found in TSI’s favor.

II.

In Virginia, to establish a breach of fiduciary duty, a plaintiff must show that (1) the defendant owed a fiduciary duty, (2) the defendant breached that duty, and (3) damages resulted from the breach. Informatics Applications Grp., Inc. v. Shkolnikov, 836 F.Supp.2d 400, 424 (E.D.Va.2011). “[A]n employee ... owes a fiduciary duty of loyalty to [her] employer during [her] employment.” Williams v. Dominion Tech. Partners, LLC, 265 Va. 280, 576 S.E.2d 752, 757 (2003). This duty “prohibits the employee from acting in a manner adverse to his employer’s interest.” Hilb, Rogal & Hamilton Co. of Richmond v. DePew, 247 Va. 240, 440 S.E.2d 918, 921 (1994). Moreover, “termination does not automatically free a[n] ... employee from his or her fiduciary obligations” if the action was “founded on information gained during the relationship.” Today Homes, Inc. v. Williams, 272 Va. 462, 634 S.E.2d 737

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630 F. App'x 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tech-systems-inc-v-lovelen-pyles-ca4-2015.