Pinnacle Ins. Solutions, LLC v. Kolbe, 2014 WL 1272212 (D. N.J. Mar. 27, 2014)
Federal court abstains from hearing CFAA case in favor of parallel state court proceeding
Company insider is accused of passing sensitive information to competitor, directing potential clients away from employer and impugning employer’s reputation. Insider resigns.
Former employer sued in state court on several state law claims and then subsequently sued in federal court for violating the Computer Fraud and Abuse Act along with additional state law and federal law claims.
Defendants moved for dismissal of the federal case requesting that the federal court abstain from considering the complaint under the Colorado River doctrine. After determining the cases were parallel proceedings, the court examined the Colorado River factors and determined that the state court could appropriately adjudicate all of the claims at issue while protecting the plaintiff’s interests and granted the motion to dismiss.