Ex-Employee Violated Duty of Loyalty, Breached Non-Compete, and Committed Computer Fraud Act Violation, but New Employer Not Liable for Misappropriation of Non-Trade Secret “Confidential Information”

A dental products supply company, DHPI, won partial summary judgment from a Wisconsin federal court against its ex-employee, Ringo, for competing with DHPI both while still an employee and soon after resigning. The most interesting issues in the opinion, however, concern application of the Computer Fraud and Abuse Act to Ringo’s copying of DHPI’s computer hard drive, and DHPI’s unsuccessful claim against Ringo’s new employer for “misappropriation of confidential information.” Additionally, Ringo’s Illinois Wage Payment Act counterclaim failed because DHPI is a Wisconsin corporation with its principal place of business in that state. Dental Health Products, Inc. v. Ringo, Case No. 08-C-1039 (E.D.Wis., Aug. 24, 2011).

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