Brooks v. AM Resorts, LLC, 2013 WL 3343993 (E.D. Pa. July 3, 2013)

Brooks v. AM Resorts, LLC, 2013 WL 3343993 (E.D. Pa. July 3, 2013)

An employee was fired from his job and several months later the employer revealed that it had been receiving privileged emails between the former employee and his attorney concerning the firing. Employee sued for violation of the Computer Fraud and Abuse Act, inter alia., and the defendant moved for summary judgment.

“Numerous district court decisions in the Third Circuit have held that to fall within this definition of ‘loss,’ the ‘alleged “loss” must be related to the impairment or damage to a computer or computer system.'” . . . . “A compensable ‘loss’ under the CFAA . . . is the cost of remedial measures taken to investigate or repair the damage to the computer, or the loss is the amount of lost revenue resulting from a plaintiff’s inability to utilize the computer while it was inoperable because of a defendant’s misfeasance.”

In granting the motion for summary judgment, the court found that the plaintiff did not have evidence in the record to support the requisite $5,000 loss and that those items that were in the record did not fall within the categories of compensable losses as they were costs paid to an expert to assist in litigation, not in investigating and remedying damage to a computer.

Published by Shawn E. Tuma

Shawn Tuma is an attorney who is internationally recognized in cybersecurity, computer fraud and data privacy law, areas in which he has practiced for nearly two decades. He is a Partner at Spencer Fane, LLP where he regularly serves as outside cybersecurity and privacy counsel to a wide range of companies from small to midsized businesses to Fortune 100 enterprises. You can reach Shawn by telephone at 972.324.0317 or email him at stuma@spencerfane.com.

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