Another Michigan Federal Court Adopts Narrow Interpretation of Civil Liability Under Computer Fraud and Abuse Act

A U.S. District Court in Michigan recently granted partial summary judgment in favor of two individuals who were sued by their former employer, Dana Ltd., for violating the Computer Fraud and Abuse Act, 18 U.S.C. §1030 et seq. 

The individuals admitted that, prior to their departure from Dana but after accepting employment with a competitor, they accessed and copied numerous Dana files and then erased or obliterated the files they had copied. Notwithstanding contrary authority, the court held that the CFAA only prohibits unauthorized access to an employer’s confidential data, regardless of motive, and the employees had the right to access Dana’s secret information. The CFAA also prohibits unauthorized alteration of computerized data, but the judge ruled that Dana failed to prove that it permanently lost significant information. Further, it was held that only officers and directors have a fiduciary duty to their employer, and these employees were neither officers nor directors. Dana Ltd. v. American Axle & Mfg. Holdings, Inc., Case No. 1:10-CV-450 (E.D.Mich., June 29, 2012).

To read this blog post click here