Employer did not violate employee’s privacy by accessing personal laptop

Sitton v. Print Direction, Inc., — S.E.2d —, 2011 WL 4469712 (Ga.App. September 28, 2011)

A Georgia court held that an employee using a personal laptop to conduct business for a competitor did not have an invasion of privacy claim when his employer busted him at work using the laptop to send email.

Plaintiff-employee worked for a printing company. His wife also owned a printing business. On the side, plaintiff would broker printing jobs, sending them to his wife’s company. He would bring his own laptop to work and use that to conduct business for his wife’s company while at work for his employer.

One day, the boss came into plaintiff’s office (apparently when plaintiff was not in the room) and saw that the computer screen on plaintiff’s computer showed a non-work related email account, with messages concerning the brokering of print jobs to the wife’s company. The boss printed out the email messages.

Plaintiff sued, claiming, among other things, common law invasion of privacy and violation of a provision of the Georgia Computer Systems Protection Act. The case went to trial, and plaintiff lost. In fact, he ended up having to pay almost $40,000 to his employer on counterclaims for breach of loyalty. Plaintiff sought review of the trial court’s decision. On appeal, the court affirmed.

The appellate court affirmed the trial court’s finding that the boss’s access to plaintiff’s computer did not constitute common law invasion of privacy based upon an intrusion upon plaintiff’s seclusion or solitude, or into his private affairs. The court held that the boss’s activity was “reasonable in light of the situation” because:

  • He was acting in order to obtain evidence in connection with an investigation of improper employee behavior,
  • The company’s interests were at stake, and
  • He had “every reason” to suspect that plaintiff was conducting a competing business on the side, as in fact he was.

To bolster this holding, the court cited from a Georgia Supreme Court case that said, “[T]here are some shocks, inconveniences and annoyances which members of society in the nature of things must absorb without the right of redress.”

Negligence claim allowed in laptop theft case

Ruiz v. Gap, Inc., 540 F.Supp.2d 1121 (N.D. Cal. March 24, 2008)

In 2006, Ruiz applied for a job at the Gap and was required to provide his Social Security number. A vendor hired by the Gap for recruiting stored Ruiz’s information on a laptop which, as luck would have it, was stolen.

Though he was not (at least yet) the victim of identity theft, Ruiz sued the Gap for negligence. The Gap moved for judgment on the pleadings which the court also treated as a motion to dismiss for failure to state a claim. The court denied the motion to dismiss as to negligence (and granted the motion as to claims for bailment, unfair competition and violation of the California constitutional right to privacy). But Ruiz’s standing to bring the claim was tenuous.

The Gap had argued that Ruiz lacked standing. His only alleged harm was that he was at an increased risk for identity theft. The court’s analysis of the Gap’s objection to standing focused on the first element of the Lujan test (Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992)), namely, whether Ruiz’s alleged injury was “concrete and particularized.”

The Ninth Circuit has held for allegations of future harm to confer standing, the threat must be credible, and the plaintiff must show that there is a “significant possibility” that future harm will ensue. The Lujan case (which is the leading Supreme Court authority on standing) essentially creates a “benefit of the doubt” for plaintiffs at the pleading stage — a court is to presume that general allegations embrace those specific allegations that are necessary to show a particularized injury. Ruiz’s general allegations of the threat of future harm were thus sufficient to confer standing.

But the court gave a warning to Ruiz that the threshold of standing does not apply only to pleadings, but is an indispensable part of a plaintiff’s case throughout. In other words, he’ll have to come up with more later to keep the case in court.

So in denying the motion to dismiss the negligence claim, the court incorporated its standing analysis. The only issue on the point of negligence was whether Ruiz had suffered an injury. Ruiz’s general allegations were sufficient.

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