Submission + - Fired Employee Can Sue Company For Stolen Data
ubuwalker31 writes: Plaintiff Louis Thyroff was an insurance agent for defendant Nationwide Mutual Insurance Company. In 1988, the parties had entered into an Agent's Agreement that specified the terms of their business relationship. As part of the arrangement, Nationwide agreed to lease Thyroff computer hardware and software to facilitate the collection and transfer of customer information to Nationwide. In addition to the entry of business data, Thyroff also used the AOA system for personal e-mails, correspondence and other data storage that pertained to his customers. On a daily basis, Nationwide would automatically upload all of the information from Thyroff's AOA system, including Thryoff's personal data, to its centralized computers.
The Agent's Agreement was terminable at will and, in September 2000, Thyroff received a letter from Nationwide informing him that his contract as an exclusive agent had been cancelled. The next day, Nationwide repossessed its AOA system and denied Thyroff further access to the computers and all electronic records and data. Consequently, Thyroff was unable to retrieve his customer information and other personal information that was stored on the computers. Thyroff initiated an action for conversion (civil theft) against Nationwide Insurance in the United States District Court for the Western District of New York, alleging that Nationwide stole his business and personal information stored on the company's computer hard drives, which had been leased to him.
Shockingly, New York State's highest court ruled for the little guy, and agreed that an action for conversion could be pursued in Federal Court.
How will this effect corporate data policies and practices in the future? Do you think this legal ruling was correct?
Read the entire court opinion in Thyroff v. Nationwide
The Agent's Agreement was terminable at will and, in September 2000, Thyroff received a letter from Nationwide informing him that his contract as an exclusive agent had been cancelled. The next day, Nationwide repossessed its AOA system and denied Thyroff further access to the computers and all electronic records and data. Consequently, Thyroff was unable to retrieve his customer information and other personal information that was stored on the computers. Thyroff initiated an action for conversion (civil theft) against Nationwide Insurance in the United States District Court for the Western District of New York, alleging that Nationwide stole his business and personal information stored on the company's computer hard drives, which had been leased to him.
Shockingly, New York State's highest court ruled for the little guy, and agreed that an action for conversion could be pursued in Federal Court.
How will this effect corporate data policies and practices in the future? Do you think this legal ruling was correct?
Read the entire court opinion in Thyroff v. Nationwide
