241123ppan-pdf•Nra Group, LLC v. Nicole Durenleau
241123ppan-pdfCourt of Appeals for the Third Circuit7 de out. de 2025
PRECEDENTIAL
UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT
____________
No. 24-1123
____________
NRA GROUP, LLC
v.
NICOLE DURENLEAU; JAMIE BADACZEWSKI
_________________________________________________
NICOLE DURENLEAU
v.
NRA GROUP, LLC; STEVE KUSIC; SHELL SHARMA
_________________________________________________
JAMIE BADACZEWSKI
v.
NRA GROUP, LLC; STEVE KUSIC
NRA GROUP, LLC,
Appellant
____________________________________________
Appeal from the United States District Court
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for the Middle District of Pennsylvania
(District Court No. 1:21-cv-00715)
District Judge: Honorable Jennifer P. Wilson
____________________________________________
Argued on January 22, 2025
Before: HARDIMAN, McKEE, and AMBRO, Circuit Judges
(Opinion filed: October 7, 2025)
Ivo J. Becica
OBERMAYER REBMANN MAXWELL & HIPPEL
1500 Market Street
Centre Square West, 34th Floor
Philadelphia, PA 19102
Jennifer Bruce
Paige Macdonald-Matthes (Argued)
OBERMAYER REBMANN MAXWELL & HIPPEL
200 Locust Street
Suite 400
Harrisburg, PA 17101
Counsel for Appellant
Cory A. Iannacone (Argued)
PILLAR AUGHT
4201 E Park Circle
Harrisburg, PA 17111
Counsel for Appellees
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OPINION OF THE COURT
AMBRO, Circuit Judge
In the wrong hands, the law becomes a hammer in
search of a nail. This is one such case.
While employed with the debt-collection firm National
Recovery Agency (NRA), Nicole Durenleau was out sick. She
urgently needed a work document, but she had no way to
access it. Her friend and colleague, Jamie Badaczewski, logged
in to Durenleau’s computer from the office, accessed the
document—a spreadsheet with Durenleau’s passwords—and
emailed it to Durenleau. She did so with Durenleau’s express
permission, but the pair’s actions, including Durenleau’s
creation of the spreadsheet, breached workplace computer-use
policies.
Separately, over several years, Durenleau altered work
files in a manner that credited her for performance bonuses.
Evidence shows she did so believing she was eligible for the
bonuses.
All the while, the women allege, they were subject to
persistent sexual harassment at NRA. (One executive even
slapped Durenleau.) They filed internal complaints.
Eventually, Durenleau resigned, naming the harassment as the
reason, and Badaczewski was fired soon after.
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Just weeks later, NRA went on the offensive. It sued the
women under federal and state law for computer fraud, theft of
trade secrets, civil conspiracy, breach of fiduciary duty, and
common-law fraud. The women answered with federal- and
state-law counterclaims for sexual harassment, retaliation, and
a hostile work environment.
On cross-motions for summary judgment, the District
Court entered judgment for Durenleau and Badaczewski on all
claims against them, staying their remaining sexual-
harassment claims against NRA pending this appeal.
We affirm the District Court in full. In doing so, we hold
for the first time that, (a) by its text and purpose, the Computer
Fraud and Abuse Act, 18 U.S.C. § 1030, does not turn these
workplace-policy infractions into federal crimes, and
(b) passwords that protect proprietary business information are
not themselves trade secrets under federal or Pennsylvania law.
I. BACKGROUND
This sprawling appeal covers several chapters in the
history of a long-soured workplace. We will move through
each. But as the main issue centers on the violation of some
workplace computer-use policies, we start there.
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Through its debt-collection operations, NRA holds
volumes of personally identifiable information1 (PII) about
individual debtors. To comply with federal privacy laws, it has
“developed and implemented comprehensive written data
protection and computer use policies.” Opening Br. 11.
These data-protection practices are layered. NRA’s
systems are protected by digital firewalls. Employees can
access the systems only when they are physically present in
NRA’s offices or by using a company-issued laptop and virtual
private network (VPN) for remote access. (That VPN
connection requires additional authentication.) Employees
cannot access NRA’s systems through any personal or mobile
devices, but they may access their NRA email accounts on their
cell phones.
A related set of strict policies sets out NRA employees’
rights and responsibilities. Several are relevant here:
• Employees are forbidden from sharing credentials and
passwords;
• Employees may not “attempt to receive unintended
messages or access information by any unauthorized
means, including imitating another system,
1 “Information”—like a consumer’s name, address, social
security number, or email address—“that can be used to
distinguish or trace an individual’s identity, either alone or
when combined with other information that is linked or
linkable to a specific individual.” Guidance on the Protection
of Personally Identifiable Information, U.S. Dep’t of Labor,
https://www.dol.gov/general/ppii [https://perma.cc/WGS9-
7RFP] (July 18, 2025).
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impersonating another user, or misus[ing] legal user
credentials (usernames, passwords), etc.”;
• Passwords “may not be stored in readable form . . . or in
any location where unauthorized person[s] might
discover them”;
• Employees “must maintain exclusive control of their
[IDs and passwords]” and “may not share [IDs] or
passwords] with others . . . for any reason”;
• Employees must “take appropriate measures to protect
the security and integrity of non-public customer
information” and may not “allow[] unauthorized use of
computer terminals or access of customer files”;
• An employee may not “access or request any
information [she has] no responsibility for”; and
• Employees may not “use company computer systems
for personal use,” and an employee “caught using a
company system for anything other than logging on
. . . for collections purposes . . . will be terminated
immediately.”
App. 2886–91 (cleaned up).
Employees acknowledge and assent to all policies at
hiring; after that, they annually review those governing system
credentials and passwords. These policies bound Durenleau
and Badaczewski during the events in question. We recount
those next.
A. While Durenleau was out sick, she and Badaczewski
teamed up to solve a work problem.
Durenleau was NRA’s Senior Manager of Compliance
Services, and Badaczewski worked in marketing. Though
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apparently friends, the women did not work together or even
in the same NRA office.
Durenleau had COVID in January 2021, so she was out
sick for more than a week. While home, she was not given a
laptop to access the NRA systems from home, nor could she
come to the office. She had access only to her work email
through her personal phone. Soon she would ask Badaczewski
for help on a pressing matter.
1. January 6, 2021: Badaczewski logged in to the NRA
systems as Durenleau at the latter’s request.
Despite her illness, Durenleau was attending to work
matters on the morning of January 6. She asked her supervisor,
Lisa Daube, to look through papers on Durenleau’s desk to see
if anything needed attention. Daube found an urgent task: a
letter from a Wyoming state agency, dated December 17, 2020,
informing NRA that its state affiliate’s license had expired and
had not been timely renewed. If NRA wished to renew the
license without a hearing, it needed to submit a signed copy of
the letter and pay a $250 fine through the Nationwide
Multistate Licensing System & Registry (NMLS) within 20
days. The deadline was that day.
This was concerning. Shortly after 9:00 a.m., Daube and
Durenleau spoke on the phone to brainstorm a list of colleagues
with NMLS access who could pay the fine. NRA’s CEO, Steve
Kusic, had access. So did Durenleau. Hours passed.
Around noon, Daube texted Durenleau to offer that
either (a) NRA’s IT staff team could sift through Durenleau’s
email to find her NMLS login or (b) Durenleau could give
Daube the login information to pay it herself. Durenleau
favored the latter, but she did not remember her password.
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So instead, she called Badaczewski and shared her NRA
system credentials. Badaczewski logged in to the NRA
network as Durenleau. Next, she opened a Microsoft Excel
spreadsheet created by Durenleau that contained her passwords
for dozens of NRA systems and accounts.2 Though the
spreadsheet itself contained no consumer PII, many systems
and accounts listed did.
Badaczewski sent Durenleau her NMLS login
information from the spreadsheet. Then Durenleau texted that
to Daube, who confirmed she was in the NMLS system. Kusic,
now aware of the problem but apparently not of this progress,
made it clear he wanted the issue solved, and fast. He emailed
Durenleau, “Please let me know how YOU are going to get this
fixed by the end of business today. . . . How you do it, is your
problem. . . . I am not learning NMLS today, get this License
Renewed TODAY!!!” App. 19–20.
By the afternoon of January 6, the Wyoming licensing
problem was solved.
2. January 7, 2021: Badaczewski sent Durenleau’s
password document to her personal and work
emails.
The next afternoon, January 7, Durenleau and
Badaczewski spoke by phone for about 15 minutes. During that
call, Durenleau, still out sick without access to her NRA
computer, again gave her login to Badaczewski, who logged in
to NRA’s system as Durenleau. Id.
This time, rather than providing Durenleau with the
passwords over the phone, Badaczewski emailed the password
2 To the dismay of IT professionals everywhere, the document
was titled “My Passwords.xlsx.” App. 2770.
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spreadsheet to Durenleau’s personal Gmail account. The email
message was blank, and the subject line was simply a smiley
face.3 Eighteen minutes later, Badaczewski emailed the
spreadsheet to Durenleau’s NRA work email. The record
suggests Badaczewski’s first email to Durenleau’s Gmail
account was an accident—both her personal and NRA email
addresses began with “ndurenleau@.” App. 3275–76.
B. Durenleau altered collection records used to calculate
performance bonuses.
When NRA sued Durenleau for these workplace policy
violations, it also sued her for unrelated allegations of fraud
stemming from her crediting herself for performance bonuses.
NRA pays bonuses to its debt collectors. Bonus-worthy
performance is not defined sharply; rather, “for an NRA
employee to earn a bonus, the employee would ‘have to do
something to the account in order to aid the consumer to make
a payment.’” Opening Br. 18. According to Durenleau, this
“something” might be communicating with a debtor,
confirming payment, recording a debtor as deceased, and the
like.
3 At oral argument, counsel for NRA, describing the subject
line as a “winky-face emoji,” repeatedly assigned malicious
intent to its use: “That password spreadsheet . . . was sent
willfully and intentionally with an intent to deceive as
evidenced by the winky-face emoji. . . . It’s undisputed that it
was a winky-face emoji.” When asked whether “it’s nationally
known that’s what a winky-face emoji means,” counsel for
NRA did not answer and instead changed the subject. Oral Arg.
Recording 31:22–32:10.
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NRA assigns debt accounts to “workgroups” to track
which employees are responsible for collecting a debt and thus
eligible for a bonus. From 2019 through her resignation in
2021, Durenleau, as a compliance executive, was assigned to
the compliance work group. Compliance was not the primary
team responsible for collections (NRA has a separate
collections team), but NRA executives set up a compliance
workgroup for Durenleau to track her eligibility for bonuses.
There is no evidence of a clear policy governing when
Durenleau—a member of the compliance team, but not a
collector—was eligible to receive a collection bonus. Still, she
had “permission to move select accounts [to her workgroup]
based on certain circumstances.” App. 3631.
In January 2021, Durenleau emailed supervisors on the
collections team with a concern: collectors were moving
accounts out of the compliance workgroup and into their own,
thus counting those accounts toward their bonuses, when
Durenleau believed they should count toward hers. Daube,
Durenleau’s supervisor, met her to discuss the accounts. The
pair reviewed some that Durenleau believed had been moved
improperly by the collections team. Daube disagreed. In her
view, no one in compliance had worked on these accounts, so
it was “proper for collectors to move the accounts from
compliance into their [workgroups].” App. 2817.
After this conversation with Durenleau, Daube asked
another NRA manager to audit all collections accounts moved
into the compliance workgroup in that month of January 2021.
The audit revealed Durenleau had moved 146 accounts into her
workgroup, 11 of which had been moved after the debt had
been collected. During the audit, Durenleau called the auditing
manager and asked, “[D]id I do something wrong?” App. 742.
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When the audit was complete, Durenleau admitted to
moving those 146 accounts. Records show that between 2019
and her 2021 resignation, Durenleau moved some 200–300
accounts per month from the collections workgroup to the
compliance workgroup. A good number of these, worth
roughly $3,000 in bonus payments, were moved after debt
payment had been made.
In response, NRA issued Durenleau a written “Final
Warning with No Suspension,” disqualified her from bonus
eligibility, and warned her she would be fired for any new
violations. App. 3201. Durenleau acknowledged the warning
in writing, and she did not dispute further whether she was
eligible to receive bonuses on the accounts she had moved to
her workgroup.
NRA issued that warning to Durenleau on February 2,
2021. She resigned from NRA on February 21. Badaczewski,
meanwhile, was fired from NRA a month later, on March 20,
the day after an internal investigation revealed that she had
been the one to log in to Durenleau’s account in January to
access and email the spreadsheet.
C. The other half of this litigation involves allegations of
sexual harassment, retaliation, and related employment
claims.
Though this appeal is about NRA’s claims against
Durenleau and Badaczewski, their claims against NRA are
intertwined, and, as we later explain, see Part II below, relevant
to whether we have jurisdiction.
Durenleau and Badaczewski claim that, during their
time at NRA, they were sexually harassed, and—when they
resisted—retaliated against. On this point, we recount only
some of the vast record.
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Durenleau reported that soon after her 2014 hiring, the
CEO, Kusic, repeatedly commented on her appearance,
suggested they picture each other naked, and asked her to go
skinny dipping with him. Durenleau told another NRA
executive about all of this, but nothing happened. Kusic’s
harassment continued. Later, in one bizarre incident, he “wiped
a cheese curl over Durenleau’s lips” and gave her what she
called a “funny look.” App. 23.
Badaczewski began working at NRA much later than
Durenleau, in September 2020. She described being sexually
harassed “all day, every day” during her six months of
employment at NRA, counting at least 120 incidents. App. 26.
Kusic told her that men liked her because she had blonde hair
and large breasts, and, like with Durenleau, he often asked
about her sex life and interest in various men. This continued
all the way through her firing in March 2021.
For Durenleau, the end began in November 2020. One
day that month, a male NRA executive found Durenleau in her
office with several people who reported to her. She was on the
speakerphone with a coworker, who was complaining about
another NRA employee. The executive asked Durenleau’s
subordinates to leave, closed the door, chastised Durenleau for
criticizing a coworker in front of others, then slapped her on
the face.4 That day, Durenleau reported the incident to in-house
counsel. In response, counsel advised Durenleau that “a feeling
of job insecurity could lead to [mis]interpreting a paternalistic
pat on the cheek that felt a bit more firm than usual, followed
by a quick departure. But, that interpretation appears to have
been mistaken. Your job is secure.” App. 25.
4 The executive was later convicted of criminal harassment for
his actions.
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Durenleau went out sick with COVID not long after, in
January 2021, and we have already told what happened from
there: the expired NMLS license, the password spreadsheet,
and Badaczewski’s assistance.
Durenleau resigned in February, three months after the
slap, writing in her resignation letter that she was “targeted and
harassed at NRA . . . [, and t]he harassment was taken to a
whole new level when [the executive slapped her].” App. 4711.
Durenleau explained she could not “take this [anymore]” and
was “resigning to free [her]self from this environment.” Id. The
next day, her attorney sent NRA a demand letter detailing
Durenleau’s allegations of sexual harassment and intention to
sue. Recall Badaczewski was fired the next month, when NRA
discovered she was the employee who had accessed
Durenleau’s computer and emailed her the password
spreadsheet.
D. Procedural history.
NRA filed its initial complaint in April 2021. At first, it
alleged only one count: a violation of the Computer Fraud and
Abuse Act (CFAA), 18 U.S.C. § 1030, by Durenleau. It filed
an amended complaint the next month, adding Badaczewski as
a defendant. Against both women, NRA alleged four counts
under the CFAA, claims for violating the federal Defend Trade
Secrets Act, 18 U.S.C. § 1836 et seq.; the parallel Pennsylvania
Uniform Trade Secrets Act, 12 Pa. Con. Stat. § 5301 et seq.;
and state-law claims of civil conspiracy, breach of the
common-law duty of loyalty, and—against Durenleau only—
fraud.
Durenleau and Badaczewski answered in June and July
2021, respectively, raising counterclaims for sexual
harassment, negligent hiring and retention, and retaliation
under state and federal law. After discovery, Durenleau and
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Badaczewski amended their answers and counterclaims in
November 2022.
The parties cross-moved for summary judgment. The
District Court granted summary judgment to Durenleau and
Badaczewski on all of NRA’s claims against them, and it
granted in part the employees’ motion on the sexual-
harassment and related claims, leaving some of those claims
pending. NRA then moved the Court to certify its judgment for
the employees under Federal Rule of Civil Procedure 54(b),
which permits a district court to “direct entry of a final
judgment” for some “claims or parties” if the court “determines
that there is no just reason for delay.” The Court did so as to its
judgment for Durenleau and Badaczewski, staying the
remaining sexual-harassment and retaliation claims.
NRA timely appealed.
II. JURISDICTION AND STANDARD OF REVIEW
The District Court had jurisdiction over the federal
questions presented, 28 U.S.C. § 1331, and supplemental
jurisdiction over the related state-law claims, id. § 1367. The
question of our jurisdiction is not quite as tidy.
Federal Rule of Civil Procedure Rule 54(b) allows a
court to “direct entry of a final judgment” on a portion of a
case’s claims “only if the court expressly determines that there
is no just reason for delay.” But Rule 54(b) certification “is the
exception, not the rule, to the usual course of proceedings in a
district court.” Elliott v. Archdiocese of N.Y., 682 F.3d 213, 220
(3d Cir. 2012). To justify the exception, the district court must
determine there has been a final disposition on a “cognizable
claim” sufficient to constitute a “final judgment” and evaluate
whether there is “any just reason for delay, taking into account
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judicial administrative interests as well as the equities
involved.” Id. (cleaned up).
Elaborating on these administrative interests and
equities, we have instructed that, when assessing whether there
is a “just reason for delay” under Rule 54(b), a district court
consider five factors:
(1) the relationship between the adjudicated and
unadjudicated claims;
(2) the possibility that the need for review might
or might not be mooted by future developments
in the district court;
(3) the possibility that the reviewing court might
be obliged to consider the same issue a second
time;
(4) the presence or absence of a claim or
counterclaim which could result in set-off
against the judgment sought to be made final;
[and]
(5) miscellaneous factors such as delay,
economic and solvency considerations,
shortening the time of trial, frivolity of
competing claims, expense, and the like.
Berckeley Inv. Grp., Ltd. v. Colkitt, 455 F.3d 195, 203 (3d Cir.
2006).
We review a district court’s Rule 54(b) certification for
abuse of discretion. Id. at 202.
At the threshold, we note that the District Court’s entry
of summary judgment for Durenleau and Badaczewski on
NRA’s claims was a final judgment on those claims. See Fed.
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R. Civ. P. 54(b) (permitting a district court to “direct entry of
a final judgment as to one or more, but fewer than all, claims”).
But as we weigh the “judicial administrative interests”
and “the equities,” Elliott, 682 F.3d at 220, the first factor gives
us pause. When we compare the timing of Durenleau’s and
Badaczewski’s sexual-harassment allegations with the timing
of NRA’s lawsuit, the suit looks preemptive—or even
retaliatory, for the employees’ complaining about harassment
at work. In fact, in the background section of their brief to us,
Durenleau and Badaczewski describe what discovery
“uncovered”: a “modus operandi” among NRA executives of
“responding to any complaints” of sexual harassment or
mistreatment by “threatening legal action against the
complainant[,] . . . which is exactly what occurred to
Durenleau and Badaczewski.” Answering Br. 7; see also id.
nn.1–2 (describing such instances concerning other, former
employees who were threatened with legal action or the release
of “devastating” personal and professional information after
complaining about mistreatment at the hands of NRA
executives).
That said, the issues here are legally distinct from those
stayed at the District Court. Our consideration of NRA’s
claims under the CFAA, state and federal trade-secrets acts,
and Pennsylvania tort law has nothing to do with sexual
harassment and the women’s federal- and state-law
employment claims. We can resolve the merits of the claims
before us independently of those stayed claims, and doing so
will not offend “judicial administrative interests” or “the
equities involved.” Elliott, 682 F.3d at 220. So we conclude the
District Court properly certified its ruling under Rule 54(b),
giving us jurisdiction over that final judgment, 28 U.S.C.
§ 1291.
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This matter properly before us, we review de novo the
District Court’s grant of summary judgment. Canada v.
Samuel Grossi & Sons, Inc., 49 F.4th 340, 345 (3d Cir. 2022).
Our inquiry is the same as that Court’s: whether, viewing the
facts in the light most favorable to NRA and drawing all
inferences in its favor, Durenleau and Badaczewski are entitled
to judgment as a matter of law because there are no genuine
disputes of material fact. Id.; Fed. R. Civ. P. 56(a).
III. DISCUSSION
We sift through the heap of NRA’s claims against
Durenleau and Badaczewski, beginning with those under the
CFAA. After that, we consider whether the passwords in the
spreadsheet were trade secrets, and we conclude by addressing
NRA’s state-law tort claims against the women.
A. The District Court correctly granted summary
judgment for Durenleau and Badaczewski on NRA’s
CFAA claims against them.
Congress adopted the CFAA in 1986 to “stem the tide
of criminal behavior” involving computers, which were
becoming more commonplace in schools, offices, and homes.
Patricia L. Bellia, A Code-Based Approach to Unauthorized
Access Under the Computer Fraud and Abuse Act, 84 Geo.
Wash. L. Rev. 1442, 1443 (2016) (quoting H.R. Rep. No. 98-
894, at 4 (1984)).
Two features of the CFAA merit special mention.
First, the Act turns on the meaning of “authorization.”
Nearly all its provisions are triggered by someone who
“accesses a computer without authorization” or by “exceeding
authorized access,” imposing civil and criminal liability on
anyone who does so with respect to a “protected computer.”
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See generally 18 U.S.C. § 1030(a). To be sure, users in today’s
globally integrated economy would be hard-pressed to find a
computer that is not a “protected computer” under the statute,
as the term includes any computer “used in or affecting
interstate or foreign commerce or communication.” Id.
§ 1030(e)(2)(B).
NRA argues that Durenleau and Badaczewski accessed
and used NRA’s systems in ways that were either without
authorization or exceeded their authorized access. These
arguments hinge on the employees’ failure to heed NRA’s
internal computer-use policies. While courts “have long
struggled to apply these concepts of accessing a computer
without authorization and exceeding authorized access,”
Bellia, above, at 1445, we have some recent guidance. In 2021,
the Supreme Court took up a case presenting what it means to
use a computer in a way that “exceeds authorized access,”
giving us a framework to use in deciding NRA’s claims. Van
Buren v. United States, 593 U.S. 374 (2021).
Second, “a violation of any of the statute’s provisions
exposes the offender to both civil and criminal liability,” WEC
Carolina Energy Sols. LLC v. Miller, 687 F.3d 199, 201 (4th
Cir. 2012), including fines in excess of $250,000 and
imprisonment for up to 20 years, 18 U.S.C. §§ 1030(c),
3571(d). Our interpretation of the statute applies uniformly in
both contexts. Leocal v. Ashcroft, 543 U.S. 1, 11 n.8 (2004).
That means should we hold Durenleau and Badaczewski
civilly liable for their actions, the same conduct could expose
them, or others in the future who do the same, to criminal
prosecution. Put bluntly: NRA asks us to make the employees’
conduct a federal crime.
Thus we tread carefully, mindful of the “canon of strict
construction of criminal statutes” that “ensures fair warning by
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so resolving ambiguity in a criminal statute as to apply it only
to conduct clearly covered.” United States v. Lanier, 520 U.S.
259, 266 (1997). This is especially important with respect to
the CFAA, as “dramatic changes in technology [have] swept
virtually all internet-connected devices within the statute’s
reach.” Bellia, above, at 1444; accord Van Buren, 593 U.S.
at 379 (the statute covers “all information from all computers
that connect to the internet”).
NRA argues both that the employees exceeded their
authorization to access NRA’s system—the computer
protected under the statute—and that they did so without
authorization at all. The District Court ruled the employees did
neither, and we agree.
1. The employees did not exceed their authorized
access to NRA’s computer systems.
Van Buren compels affirming the District Court’s ruling
that the employees did not exceed authorized access. We
explain that case before applying it to the matter before us.
a. Van Buren and “exceeds authorized
access.”
The CFAA defines “exceeds authorized access” as
“access[ing] a computer with authorization and to use such
access to obtain or alter information in the computer that the
accesser is not entitled so to obtain or alter.” 18 U.S.C.
§ 1030(e)(6).
In Van Buren, the Supreme Court took up whether
under this definition the petitioner, a former police sergeant,
exceeded his authorized access to a law-enforcement computer
database. 593 U.S. at 378. The department’s policy allowed
him to use the database’s information only for legitimate law
enforcement purposes, but Van Buren took a bribe, through a
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sting operation, to search the database for information about a
woman that his briber wished to track down. Id. at 378–80. He
was charged with a felony violation of the CFAA “on the
ground that running the [woman’s] license plate” for that crude
purpose meant he accessed the department’s database in a way
that “exceed[ed] authorized access.” Id. at 380.
The Supreme Court ruled he did not, reasoning that “an
individual ‘exceeds authorized access’ when he accesses a
computer with authorization but then obtains information
located in particular areas of the computer—such as files,
folders, or databases—that are off limits to him.” Id. at 396
(emphasis added). Van Buren’s conduct did not meet this
standard because he had authorization to use the police
database and retrieve license-plate information. Though he
obtained that information for an “improper purpose,” he had
authorization to do so, and his obtaining the information did
not exceed that authorization. Id.
The Court adopted this interpretation based on “a gates-
up-or-down inquiry—one either can or cannot access a
computer system, and one either can or cannot access certain
areas within the system,” as some areas are fully “off limits.”
Id. at 390, 396.5 The majority reasoned that this “gates-up-or-
down approach aligns with the computer-context
understanding of access as entry.” Id. at 390 (emphasis added).
Indeed, Congress enacted the statute as increased computing
and connectivity made “society more vulnerable to hacking
5 In doing so, the Court reserved the question of “whether this
inquiry turns only on technological (or ‘code-based’)
limitations on access, or instead also looks to limits contained
in contracts or policies.” Van Buren, 593 U.S. at 390 n.8. We
consider those latter limits here.
-- 20 of 37 --
21
incidents”—that is, incidents of entry without access. Bellia,
above, at 1467.
Even more, the Van Buren Court cautioned that a mere
violation of a workplace computer-use policy should not create
a claim under the CFAA, as doing so “would attach criminal
penalties to a breathtaking amount of commonplace computer
activity.” 593 U.S. at 393. Were the “exceeds authorized
access” language of the CFAA to apply to “every violation of
a computer-use policy, then millions of otherwise law-abiding
citizens [would be] criminals.” Id. at 394. In an example highly
relevant here, the Court observed that “[e]mployers commonly
state that computers and electronic devices can be used only
for business purposes,” so were workplace policy violations
cognizable under the CFAA, “an employee who sends a
personal e-mail or reads the news using her work computer has
violated the CFAA.” Id.
b. Applying Van Buren, we conclude
Durenleau and Badaczewski did not
exceed their authorized access.
The District Court faithfully applied Van Buren to
NRA’s claims that the employees’ actions, which violated
NRA’s policies, exceeded their authorized use: Durenleau
when she created the password spreadsheet, accessed her
computer through Badaczewski while home on COVID leave,
and asked Badaczewski to email the spreadsheet to her;
Badaczewski when she logged in with Durenleau’s credentials
and emailed the spreadsheet. Under Van Buren, the “gates” of
access were “up” for both women—neither hacked into NRA’s
systems. No doubt Durenleau and Badaczewski violated
NRA’s policies, but as employees they had access to the
systems: Durenleau by the fact of her employment, and
Badaczewski with Durenleau’s credentials. No one hacked
-- 21 of 37 --
22
anything by deploying code to enter a part of NRA’s systems
to which they had no access.6
The District Court observed that “authorization under
the CFAA has not yet been defined by the Third Circuit,”
App. 34 (quotation marks omitted), relying instead on a first-
rate opinion by our district-court colleague, Judge Savage, that
explains “an employee is ‘authorized to access a computer
when his employer approves or sanctions his admission to that
computer,” Teva Pharms. USA, Inc. v. Sandhu, 291 F. Supp.
3d 659, 670 (E.D. Pa. 2018) (quotation omitted); accord
Miller, 687 F.3d at 204 (“[A]n employee is authorized to
access a computer when his employer approves or sanctions
his admission to that computer.”); LVRC Holdings LLC v.
Brekka, 581 F.3d 1127, 1133 (9th Cir. 2009) (“[A]n employer
gives an employee “authorization” to access a company
6 In the scholarship, this sensible idea that the CFAA targets
hacking comes from the “code-based” approach to cybercrime.
That is, a user must circumvent the operation of the computer
system’s code—in a word, hack—to access the computer.
Durenleau and Badaczewski did not do that; in fact, they used
NRA’s computers within the parameters of their access. The
code-based approach distinguishes hacking from what NRA
alleges here, “policy-based” violations. Along with the Bellia
article cited throughout, we find helpful Samantha Hourican,
Note, CFAA and Van Buren: A Half-Measure for A Whole-Ly
Ineffective Statute, 47 Seton Hall J. Legis. & Pub. Pol’y 30
(2023); Katherine Mesenbring Field, Note, Agency, Code, or
Contract: Determining Employees’ Authorization Under the
Computer Fraud and Abuse Act, 107 Mich. L. Rev. 819
(2009); and Orin S. Kerr, Cybercrime’s Scope: Interpreting
“Access” and “Authorization” in Computer Misuse Statutes,
78 N.Y.U. L. Rev. 1596 (2003).
-- 22 of 37 --
23
computer when the employer gives the employee permission
to use it.”).
We adopt this definition today, as it is in harmony with
Van Buren and the definitions adopted by our sister circuits.
NRA no doubt authorized Durenleau and Badaczewski to
access NRA’s computers when they were hired.
NRA resists this conclusion by doubling down on its
arguments that the employees’ violation of the workplace
policies means they exceeded their access. Even more, NRA
contends that because Durenleau could not access her
computer from home (because of firewalls, VPNs, and other
code-based protections of NRA’s system), she necessarily was
hacking by inducing Badaczewski to access Durenleau’s work
computer. This, NRA tells us, is distinct from Van Buren.
No, it is not. Durenleau could access NRA’s systems
and her work computer, just as Van Buren could the police
database. Company policy prohibited her from doing so at
home—just like policy prohibited Van Buren’s misuse of the
database—so, no question, she and Badaczewski contravened
NRA’s computer policies. But they had access to the system.
Durenleau’s access allowed her to log in to her computer,
create spreadsheets (even those with her passwords), and email
herself documents. She instead asked Badaczewski to do this
for her; Badaczewski also was an NRA employee with
authorized access to NRA’s systems. Once more, in the terms
of Van Buren, the gates were up, even if the road signs—the
NRA policies—all told the women to stop and turn around.7
7 Even were we to assume that Badaczewski was unauthorized
to access the system using Durenleau’s password, on these
facts Badaczewski did not “intentionally . . . exceed[] [her]
authorized access” under the CFAA. 18 U.S.C. § 1030(a)(2)
-- 23 of 37 --
24
We add that the policy implications of NRA’s
arguments are “breathtaking.” Van Buren, 593 U.S. at 393.
Durenleau was at home and needed a password to complete an
urgent work assignment. She couldn’t retrieve the password,
so she asked a colleague, Badaczewski, to log in to NRA’s
systems with her credentials and email a helpful document.
NRA asks us to make this a federal crime. We refuse. Instead,
we affirm the District Court’s rejection of NRA’s claims that
(emphasis added). Under that assumption, still mindful of the
“canon of strict construction of criminal statutes” that “ensures
fair warning by so resolving ambiguity in a criminal statute as
to apply it only to conduct clearly covered,” Lanier, 520 U.S.
at 266, we would conclude that “intentionally” modifies the
entire phrase “exceeds authorized access.” 18 U.S.C.
§ 1030(a)(2); see also Rehaif v. United States, 588 U.S. 225,
231 (2019) (“We have interpreted statutes to include a scienter
requirement even where the statutory text is silent on the
question. And we have interpreted statutes to include a scienter
requirement even where the most grammatical reading of the
statute does not support one.” (cleaned up)). This interpretation
is also consistent with the dangers posed by hacking—as
opposed to the workplace-policy violations we see here—that
the CFAA is meant to address. Even if Badaczewski knew she
was violating company policy against password sharing, she
thought she was acting permissibly because Durenleau asked
her to help her complete her work. So even assuming
Badaczewski exceeded her authorized access, and even
assuming that violated company policy, we would hold she did
not intentionally exceed her authorized access because she
testified repeatedly in her deposition that she believed she was
doing what her supervisors wanted her to do.
-- 24 of 37 --
25
the employees “exceed[ed] authorized access.” 18 U.S.C.
§ 1030(a)(2).
2. The employees were authorized to access NRA’s
systems.
We turn to a closely related issue: whether Durenleau
and Badaczewski, who accessed the NRA systems in violation
of company policy, did so without authorization at all. Our
conclusion follows logically, and easily, from the analysis
above. If the employees did not exceed their authorization, they
necessarily had authorization.
Still, as with the “exceeds authorization” question, NRA
offers arguments premised on the employees’ violations of
workplace policies. As NRA puts it, the firewalls, VPNs, and
so forth blocked Durenleau from accessing the NRA system
while she was home, thus she had no authorization to do so;
Badaczewski was not authorized to access Durenleau’s files;
and Durenleau, without authorization, could not give
Badaczewski what she did not have. We remain unpersuaded.
Instead, we hold that, absent evidence of code-based
hacking, the CFAA does not countenance claims premised on
a breach of workplace computer-use policies by current
employees. Because “[e]mployer-employee and company-
consumer relationships are traditionally governed by [state-
level] tort and contract law, . . . [s]ignificant notice problems
arise if we allow criminal liability to turn on the vagaries of
private polices that are lengthy, opaque, subject to change and
seldom read.” United States v. Nosal, 676 F.3d 854, 860 (9th
Cir. 2012) (en banc). Like our sister circuits, we are “unwilling
to contravene Congress’s intent by transforming a statute
meant to target hackers into a vehicle for imputing liability to
workers who . . . disregard a use policy.” Miller, 687 F.3d
at 207. It bears repeating: Not only would “such an approach
-- 25 of 37 --
26
permit[] a system owner” to use private use policies to “dictate
the contours” of a statute Congress wrote; it would
“federalize[] a range of disputes that have traditionally been
within the purview of state law.” Bellia, above, at 1475.
Though NRA would have us “criminalize[] contract
law,” Kerr, n.6 above, at 1600, CFAA case law cannot bear
that heavy consequence. Every case NRA cites for support
contemplates circumstances wholly distinct from those here.
See United States v. Shahulhameed, 629 F. App’x 685, 688
(6th Cir. 2015) (holding that independent contractor who was
fired and instructed to “not report to work” nor “have contact
with anyone” at client firm accessed computer system “without
authorization” when he subsequently logged on); Brekka, 581
F.3d at 1136 (observing without deciding that, at summary
judgment, parties did not dispute that former employee “would
have accessed a protected computer ‘without authorization’”
had he logged in “after he left” employer); Teva, 291 F. Supp.
3d at 671 (describing how non-employees, “akin to hackers,”
induced employee to share protected information from
employer’s computer system). NRA does not point to, nor can
we find, support in case law for its radical position.
Indeed, there are many other causes of action—breach
of contract, business torts, fraud, negligence, and so on—that
provide a remedy for employers when employees grossly
transgress computer-use policies.8 The CFAA is the wrong tool
for NRA’s project.
With today’s holding, we mean to turn future litigants
to other causes of action so that we do not make “millions of
otherwise law-abiding citizens [into] criminals.” Van Buren,
8 NRA brought those claims, but as we will explain, they fail,
too. See Part III.C, below.
-- 26 of 37 --
27
593 U.S. at 394. Accordingly, we affirm the District Court’s
grant of summary judgment for Durenleau and Badaczewski
on all of NRA’s claims under the CFAA.9
B. Because Durenleau’s passwords did not have
“independent economic value,” they were not trade
secrets under federal or state law.
For Durenleau’s creation of the password spreadsheet
and Badaczewski’s emailing it to Durenleau’s personal
account, NRA also sued the employees for violating the federal
Defend Trade Secrets Act (DTSA), 18 U.S.C. § 1836 et seq.,
and the largely parallel Pennsylvania Uniform Trade Secrets
Act (PUTSA), 12 Pa. Cons. Stat. § 5301 et seq.
The DTSA and PUTSA protect the same type of
information, so we analyze them together. Any daylight
between the two statutes is irrelevant to the claims here.
Compare Teva, 291 F. Supp. 3d at 675 (setting out DTSA
elements), with Bimbo Bakeries USA, Inc. v. Botticella, 613
F.3d 102, 109 (3d Cir. 2010) (analyzing elements of PUTSA
claim). Each statute protects information that (a) the owner has
taken reasonable measures to keep secret, (b) “derives
independent economic value, actual or potential,” from being
kept secret, (c) is not “readily ascertainable” by “proper
means,” and, (d) were it disclosed or used, would have
economic value to those who cannot readily access it. 18
U.S.C. § 1839(3); 12 Pa. Cons. Stat. § 5302.
9 The District Court also ruled that NRA did not show
Durenleau and Badaczewski had an “intent to defraud,” a
required element of a CFAA claim. App. 40–42. We need not
address that, as NRA trips on the threshold requirement of
showing that the pair exceeded or acted without authorization.
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28
Our inquiry hinges on (b), independent economic value.
“[A] compilation of data that has independent economic value
can be protected as a trade secret,” Synthes, Inc. v. Emerge
Med., Inc., 25 F. Supp. 3d 617, 706 (E.D. Pa. 2014) (quotation
omitted), including a “compilation of customer data” if it “was
generated in such a fashion that it constitutes intellectual
property of the owner,” Bro-Tech Corp. v. Thermax, Inc., 651
F. Supp. 2d 378, 409 (E.D. Pa. 2009).
As we described, Durenleau’s spreadsheet contained
passwords for dozens of NRA systems and third-party
accounts. Many databases accessible through those accounts
contained consumer PII and other private information. NRA
argues those passwords were trade secrets under both the
DTSA and PUTSA, so Durenleau and Badaczewski
misappropriated trade secrets by creating and emailing the
spreadsheet.10 We agree with the District Court that those
passwords were not trade secrets.
The password spreadsheet Durenleau created and
Badaczewski emailed was certainly a “compilation of data,”
but it was not a “compilation of customer data” or some other
“intellectual property of the owner.” Id. Case law on this point
is thin and undeveloped, but in most of those cases, the
10 NRA also makes a fleeting argument that the passwords, by
identifying clients, constituted a “list of customers.” Opening
Br. 45. However, NRA cites no authority for the bald
proposition that a customer list is a trade secret. We are
persuaded that, to be considered intellectual property, such a
list must also reveal the kind and quantity of customer
information worthy of trade-secret protection. E.g., Spring
Steels, Inc. v. Molloy, 162 A.2d 370, 372 (Pa. 1960).
Durenleau’s spreadsheet did not.
-- 28 of 37 --
29
password information was bundled with other, more colorable
trade secrets like raw customer information, pricing schemes,
strategy documents, and so on. See, e.g., CLI Interactive, LLC
v. Diamond Phil’s, LLC, No. 2:22-cv-01602-JXN-CLW, 2023
WL 1818381, at *2–3 (D.N.J. Feb. 8, 2023) (discussing alleged
misappropriation of system administrator passwords, branding
information, marketing concepts, photos, video, and
“proprietary optimization techniques and data”); TMX
Funding, Inc. v. Impero Techs., Inc., No. C 10-00202 JF
(PVT), 2010 WL 2509979, at *3–4 (N.D. Cal. June 17, 2010)
(concluding allegations of “nine broad categories of trade
secret information,” only one of which concerned “[l]ogin and
password information,” were “sufficient” at Rule 12(b) stage).
But see PhoneDog v. Kravitz, No. C 11-03474 MEJ, 2011 WL
5415612, at *5 (N.D. Cal. Nov. 8, 2011) (ruling media
company’s allegation of Twitter password as a trade secret was
enough to survive 12(b) motion, as the account and private
Twitter messages revealed customer information and business
strategies, but noting necessity of “fully developed evidentiary
record” for more careful consideration “on summary
judgment”).
Here, for its conclusion that the passwords in the
spreadsheet were not trade secrets, the District Court mostly
relied on a district court case that interpreted Virginia’s trade-
secrets law, State Analysis, Inc. v. American Financial Services
Association, 621 F. Supp. 2d 309 (E.D. Va. 2009). We think
this reliance is justified, as we accept the State Analysis Court’s
trenchant explanation that a password is “simply a series of
random numbers and letters that is a barrier to” other
proprietary material. Id. at 321. Although passwords may
“have economic value” if “integral to accessing [proprietary
information], they have no independent economic value in the
way a formula or a customer list might have.” Id. (emphasis in
-- 29 of 37 --
30
original). Thus, when “a plaintiff has not alleged that its
passwords are the product of any special formula or algorithm
that it developed, the passwords are not trade secrets.” Id.
Before us, NRA does not allege that the passwords were
the “product of any special formula or algorithm.” Id. Rather,
it misses the point entirely by arguing about the sensitivity and
economic value of customer information, which the passwords
were not. Those passwords granted access to client databases
and other business-use information. But imagine they instead
protected a website with pictures of cute puppies or a beloved
couple’s wedding registry. (And NRA is assuredly not in the
business of chihuahuas or china sets.) Because the revealed
content would have no economic value to NRA, there is no
serious claim the passwords would either. That is because it is
what the passwords protect, not the passwords, that is valuable.
In any event, while the leak of actual trade secrets with
independent economic value can endanger a business, NRA
immediately remedied the problem by simply changing the
passwords. (Query whether Coca-Cola could remedy the leak
of its recipe, a quintessential trade secret, merely by changing
the ingredients in Coke.) The passwords in the spreadsheet
shared by Durenleau and Badaczewski were “numbers and
letters,” State Analysis, 621 F. Supp. 2d at 321, that blocked
the proprietary information that did have independent
economic value: NRA’s business records and customer
databases.
In response, NRA seeks support from our
nonprecedential opinion in Estate of Accurso v. Infra-Red
Services, Inc., 805 F. App’x 95 (3d Cir. 2020). But in that case
we did not have reason to scrutinize whether passwords can be
trade secrets. A jury found Accurso had “misappropriated” a
roofing company’s “trade secrets,” including that company’s
-- 30 of 37 --
31
“password and ID to . . . a database containing information
about pricing of certain roofing jobs, past customers, and
prospective customers.” Id. at 106. On appeal, Accurso
challenged the jury’s finding that the database ID and password
constituted a trade secret, arguing “that Defendants did not
‘own’ the ID and password information.” Id. Because
Accurso’s argument focused on ownership, we did not address
whether the passwords had independent economic value.
Rather, we assumed, without deciding, that the password
information was a trade secret, concluding “[t]he jury
could . . . have determined that Accurso misappropriated this
information because” his using it was a “violation” of
“confidence.” Id. (quotation omitted). Accurso does not work
the magic NRA wishes it did.
We agree with the District Court and hold that these
passwords, which had no independent economic value, were
not trade secrets under the DTSA and PUTSA.
C. All three of NRA’s state-law tort claims fail.
Based on the employees’ actions to access Durenleau’s
computer and email the spreadsheet, NRA sued Durenleau and
Badaczewski for civil conspiracy and breach of the common-
law duty of loyalty. It also sued Durenleau for fraud for her
altering of performance-bonus records. We affirm the District
Court’s judgment for Durenleau and Badaczewski on each of
these state-law counts.
1. NRA’s claim of civil conspiracy fails because there is
no object of the conspiracy and the employees did
not act maliciously.
NRA alleges civil conspiracy on the ground that
Durenleau and Badaczewski conspired to violate various
federal and state statutes. Because there was no such violation,
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32
and because NRA cannot show the employees acted with the
required malicious intent, NRA loses.
“Claims for civil conspiracy under Pennsylvania
common law,” as NRA’s claim here, “must be based upon an
independent underlying civil cause of action.” Bro-Tech, 651
F. Supp. 2d at 418. Along with proving that civil violation, the
plaintiff must show it was the object of a conspiracy. Gen.
Refractories Co. v. Fireman’s Fund Ins., 337 F.3d 297, 313 (3d
Cir. 2003). A plaintiff must also show “[p]roof of malice”—
that the conspiracy was committed with “intent to do an
unlawful act or to do an otherwise lawful act by unlawful
means” and “an intent to injure . . . absent justification.”
Thompson Coal Co. v. Pike Coal Co., 412 A.2d 466, 472 (Pa.
1979). This is a demanding standard: malicious intent must be
the “sole purpose” of the conspiracy. Bro-Tech, 651 F. Supp.
2d at 419 (emphasis in original) (quotation omitted). Put
another way, “proof of acts which are equally consistent with
innocence” is “not sufficient” to prove malice. Scully v. US
WATS, Inc., 238 F.3d 497, 516 (3d Cir. 2001) (quoting Fife v.
Great Atl. & Pac. Tea Co., 52 A.2d 24, 27 (Pa. 1947)).
For two reasons, NRA cannot succeed on its claim of
civil conspiracy.
First, there is no viable free-standing cause of action,
Bro-Tech., 651 F. Supp. 2d at 418, so even had Durenleau and
Badaczewski conspired, there is no object of that conspiracy.
NRA pled violations of the CFAA, DTSA, and PUTSA as the
causes of action underlying its civil-conspiracy claim. As we
have explained, see Parts III.A and III.B above, Durenleau and
Badaczewski did not violate those statutes, so NRA’s
conspiracy claim fails at the threshold.
Second, and for good measure, NRA cannot show
malice. Its best argument is an invitation to speculate wildly:
-- 32 of 37 --
33
the employees “communicated via text and cell phone
numerous times” on the days when Badaczewski accessed
Durenleau’s files. Opening Br. 48. NRA asks us to rule in its
favor because the employees have not “provided any legitimate
business reason for their actions.” Opening Br. 49. This is
wrong twice. For starters, the employees have repeatedly said
that they communicated to help Durenleau solve the looming
licensing registration problem. See, e.g., App. 3274
(Badaczewski’s deposition, in which she states Durenleau “had
no way of accessing her files” while “on COVID leave” and
“she called me to . . . send over something so she could do her
job”); App. 3163–64 (Durenleau’s deposition, in which she
explains she “needed” the “Excel file to get passwords”). But
even if the employees hadn’t explained this, it is NRA’s own
burden, as the plaintiff, to prove malice. The best it can muster
is “proof of acts which are equally consistent with innocence,”
evidence that is “not sufficient.” Scully, 238 F.3d at 516
(quotation omitted).
2. Durenleau and Badaczewski did not breach their
common-law duty of loyalty because they did not
compete with NRA.
NRA alleges that Durenleau’s creation of the password
spreadsheet and Badaczewski’s assistance in emailing it
combine to show the employees violated their duty of loyalty,
which required them to act in NRA’s best interest.11 At best,
11 In its summary-judgment briefing at the District Court, NRA
argued Durenleau’s failure to renew timely the Wyoming
license was yet another breach of this duty. The District Court
ruled NRA forfeited this argument by not including it in its
initial or amended complaints. NRA does not challenge that
ruling here.
-- 33 of 37 --
34
this argument overreads Pennsylvania law on an employee’s
duty of loyalty; at worst, it would create civil liability for a
wide array of employee infractions. We reject it.
Pennsylvania law “dictates that an employee, as the
agent of [her] employer, owes [that] employer a duty of
loyalty.” Synthes, 25 F. Supp. 3d at 667. Nested in the broader
duty of loyalty are specific obligations: to avoid competing
with the employer, aiding the employer’s competitors, or using
the property or confidential information of the employer “for
the [employee’s] own purpose[s] or those of a third party.” Id.
(citing Restatement (Third) of Agency §§ 8.04, 8.05 (2006)
and Reading Radio, Inc. v. Fink, 833 A.2d 199, 211 (Pa. Super.
Ct. 2003)).
So to prove a duty-of-loyalty breach, NRA must show
(1) that Durenleau and Badaczewski intentionally or
negligently failed to act in good faith and solely for NRA’s
benefit in their employment, (2) that NRA was injured, and (3)
that their failure to act solely for NRA’s benefit was a “real
factor” in causing NRA’s injuries. McDermott v. Party City
Corp., 11 F. Supp. 2d 612, 626 n.18 (E.D. Pa. 1998) (citing Pa.
Suggested Standard Civil Jury Instructions § 4.16 (1991)).
Even if we spot NRA the last two elements, it cannot
prove that the employees’ actions satisfy the first, which
requires showing Durenleau and Badaczewski did not act for
NRA’s benefit. Given all we know about the events in
question, we agree with the District Court that there is “no
evidence that Durenleau or Badaczewski used the information
in any way other than to resolve the licensing issue.” App. 48.
Still, NRA resists this ruling by arguing that, actually,
“[e]vidence of competition is not required to support a claim”
for breach of the duty of loyalty, Opening Br. 49 (emphasis
added), characterizing some cases as holding that the duty also
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35
requires an employee to “conduct the employer’s business in
the employer’s best interest, attentively and responsibly.”
Opening Br. 50–51. Left unexamined, this principle might
support a claim that Durenleau’s maintenance of the password
spreadsheet, in violation of NRA’s security policies, was not
“attentive[]” or “responsibl[e].” Id. But each of the cases NRA
cites for this invented duty still involves competition in some
flavor; none finds a breach simply because an employee
violated workplace policies. Solid Wood Cabinet Co. v.
Partners Home Supply, 2015 WL 1208182, at *7–8 (E.D. Pa.
Mar. 13, 2015) (finding employee may have diverted some of
his former employer’s business to a competitor, his later
employer); PNC Mortg. v. Superior Mortg. Corp., 2012 WL
628000, at *26 (E.D. Pa. Feb. 27, 2012) (reasoning former
bank employees may have misappropriated customer lists,
documents, and other confidential information when hired by
competitor); Westfield Grp. v. Campisi, 2006 WL 328415, at
*19 (W.D. Pa. Feb. 10, 2006) (in fully inapplicable
circumstances, finding possible breach where lender did not
inform borrowers of unfavorable loan terms, which lender
should have known borrowers could not afford). Nothing in
these cases looks as benign as what we have here.
At its core, the duty of loyalty owed by an employee
under Pennsylvania law presumes that “no [wo]man can serve
two masters.” Onorato v. Wissahickon Park, Inc., 244 A.2d 22,
25 (Pa. 1968) (citing Matthew 6:24). An employee has a duty
not to compete, to look out for the employer’s financial and
competitive interests, and not to arrogate the employer’s assets
or business opportunities for herself. NRA cannot prove
Durenleau and Badaczewski breached their duties, so we
affirm.
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36
3. Durenleau did not commit fraud by collecting
bonuses on accounts she believed entitled her to
bonus payments, even if that belief was mistaken.
NRA claims Durenleau committed fraud by moving
accounts into the compliance workgroup, entitling her to bonus
payments that NRA does not believe she earned. To succeed
on its claim of fraud under Pennsylvania law, NRA must prove
Durenleau moved the accounts to her workgroup knowing
those transfers were false or with other intent to deceive NRA.
SodexoMAGIC, LLC v. Drexel Univ., 24 F.4th 183, 205 (3d
Cir. 2022). The District Court ruled she did not possess the
required knowledge that she was deceiving or defrauding
NRA. We agree.
NRA has not shown a genuine dispute, Fed. R. Civ. P.
56(a), as to Durenleau’s mental state. As evidence of her
fraudulent intent, NRA offers that Durenleau, during the audit
of the accounts she moved, asked an executive, “[D]id I do
something wrong?”; could not point to a written policy
allowing her to move the accounts; and did not challenge the
written warning she received after the audit. App. 742. (She
resigned soon after, instead.) To counter NRA’s allegations,
Durenleau has introduced evidence that different rules applied
to her as head of compliance and that she thought she was
following them.
At bottom, while there may be a dispute about whether
there was a different policy for Durenleau’s bonus payments
and what that policy required, NRA has not shown a genuine
dispute about the legally relevant question: whether Durenleau
committed fraud by moving the accounts with knowledge she
was making a false representation or with intent to deceive
NRA. SodexoMAGIC, 24 F.4th at 205. As the District Court
reasoned, NRA’s evidence at best requires we speculate that
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37
Durenleau’s (1) confusion about the policy, (2) asking whether
she did something wrong, and (3) silence despite discipline all
combine to show an intent to deceive. But “[s]peculation and
conjecture may not defeat a motion for summary judgment.”
Wharton v. Danberg, 854 F.3d 234, 244 (3d Cir. 2017)
(quotation omitted). Because NRA offers nothing more, we
affirm.
* * *
The CFAA does not reach these violations of workplace
computer-use policies, the passwords were not trade secrets,
and each of NRA’s state-law tort claims flunks a critical
element. For these reasons, we affirm the District Court’s
judgment for Durenleau and Badaczewski on all of NRA’s
claims against them.
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