THOMAS W. THRASH, Jr., District Judge.
This is a declaratory judgment action brought by the Plaintiff Charles Putters against his former employer, the Defendant Rmax Operating, LLC. It is before the Court on the Plaintiff's Motion to Dismiss the Defendant's Counterclaims [Doc. 30]. For the reasons set forth below, the Plaintiff's Motion to Dismiss the Defendant's Counterclaims [Doc. 30] is GRANTED in part and DENIED in part.
The Defendant (and Counter-Claimant) Rmax Operating, LLC is in the business of manufacturing and selling insulation materials for buildings. (Countercl. ¶ 6.) The Plaintiff (and Counter-Defendant) Charles Putters was employed with Rmax for roughly twenty-six years as a sales manager. (Countercl. ¶ 7.) During his employment, Putters had access to confidential information concerning Rmax's customers, pricing, and business strategy. (Countercl. ¶ 8.) Putters also had knowledge of "Rmax's proprietary work on wall insulation." (Countercl. ¶ 9.)
On August 8, 2013, Putters resigned from Rmax. (Countercl. ¶ 11.) His resignation became effective on August 9, 2013. (Countercl. ¶ 11.) Putters then began working for a competitor of Rmax, Atlas Roofing Corporation. (Countercl. ¶¶ 11, 13.) After his resignation, Putters returned his Rmax-issued computer and phone. (Countercl. ¶ 15.) Rmax then hired forensic computer experts to determine whether Putters had "unlawfully accessed or downloaded any of Rmax's confidential and proprietary information." (Countercl. ¶ 15.) Rmax was informed that Putters had downloaded documents containing proprietary and confidential information to an external hard drive. (Countercl. ¶ 16.) When confronted, Putters informed Rmax that he had destroyed the external hard drive after his resignation. (Countercl. ¶ 18.) Rmax alleges that the "confidential and proprietary information . . . that Putters . . . obtained. . . will give Atlas . . . a significant advantage in the insulation market." (Countercl. ¶ 21.)
Putters filed suit against Rmax seeking a declaratory judgment regarding the permissibility of his employment with Atlas Roofing and his remaining obligations toward Rmax. In response, Rmax asserted counterclaims for breach of fiduciary duty, of the Georgia Trade Secrets Act ("GTSA"), and violation of the Georgia Computer Systems Protection Act ("GCSPA"). Rmax seeks damages, attorneys' fees, and injunctive relief. Putters moves to dismiss the counterclaims.
A complaint should be dismissed under Rule 12(b)(6) only where it appears that the facts alleged fail to state a "plausible" claim for relief.
Rmax argues that Putters "breached his fiduciary duties by misusing and disclosing Rmax's confidential information and trade secrets." (Countercl. ¶ 27.) Specifically, Rmax argues that Putters had a duty to maintain the confidentiality of "information about Rmax and Rmax's employees, officers, customers, business contacts, and associates." (Rmax's Resp. to Putters' Mot. to Dismiss, at 19.) This claim is preempted by the GTSA. The GTSA "supersede[s] conflicting tort . . . and other laws of this state providing civil remedies for misappropriation of a trade secret." O.C.G.A. § 10-1-767(a). This statutory language has been construed broadly. Thus, a tort claim is precluded so long as it "rel[ies] on the same allegations as those underlying the plaintiff's claims for misappropriation of a trade secret."
Here, Rmax's fiduciary duty claim is based on essentially the same allegations as its GTSA claim: that Putters acquired Rmax's confidential business information and disclosed it to Atlas Roofing. (Countercl. ¶ 31) (Rmax claims as trade secrets its "pricing information, distribution channels and contacts, distribution pricing and incentive programs, strategic plans, marketing strategy, customer lists, financials, forms, and legal documents. . . ."). In response, Rmax argues that the breach of fiduciary duty claim does not rely on Putters' alleged disclosure of protected trade secrets, but rather on Putters' disclosure of other confidential information. This argument was addressed — and rejected — by the Georgia Supreme Court in
Rmax argues that Putters violated the GTSA by (1) accessing documents containing Rmax's confidential information after he resigned, and (2) disclosing Rmax's confidential information to Atlas Roofing. (Countercl. ¶ 32.) "To recover for misappropriation of trade secrets," the Plaintiff "must prove that (1) it had a trade secret as defined by OCGA § 10-1-761(4); and (2) [the Defendant] misappropriated that trade secret."
Rmax's first claim — that Putters violated the GTSA when he allegedly accessed certain documents containing Rmax's trade secrets
Further, Rmax's second claim — that Putters violated the GTSA by disclosing certain trade secrets — also fails. Putters points out, correctly, that Rmax has failed to make a plausible allegation that he disclosed any of Rmax's confidential information to Atlas Roofing. To state a plausible claim for relief, Rmax must do more than show that there is "a sheer possibility that [Putters] has acted unlawfully."
The GCSPA creates a right of action for computer theft against a "person who uses a computer or computer network with knowledge that such use is without authority and with the intention of . . . (1) [t]aking or appropriating any property of another . . . ." O.C.G.A. § 16-9-93(a). The phrase "`[w]ithout authority' includes the use of a computer . . . in a manner that exceeds any right or permission granted by the owner of the computer or computer network." O.C.G.A. § 16-9-92(18).
Here, Rmax has stated a plausible claim under the GCSPA. Rmax alleges that Putters transferred documents from his company laptop onto an external hard drive, (Countercl. ¶¶ 16, 41), that he knew he was not allowed to use his company laptop in this manner, (Countercl. ¶¶ 17, 42), and that he did it with the intention of appropriating particular Rmax documents. (Countercl. ¶ 42.) In response, Putters first argues that Rmax failed to sufficiently allege that Putters knew that he was using the computer in a manner exceeding the permission granted. (Putters' Mot. to Dismiss, at 13.) This is incorrect. Rmax alleged that it never gave Putters authority to copy documents from the company computer onto a personal hard drive, (Countercl. ¶ 17), and that Putters was aware of this. (Countercl. ¶ 42.) Rmax further alleges that, at the very least, Putters knew he did not have the authority to do this after he had already resigned.
Putters then argues that Rmax failed to sufficiently allege that Putters used the computer "without authority." (Putters' Mot. to Dismiss, at 13-14.) Putters points out that he was allowed to access company documents while he was employed with Rmax. (
For these reasons, the Court GRANTS in part and DENIES in part the Plaintiff's Motion to Dismiss the Defendant's Counterclaims [Doc. 30].
SO ORDERED.