Unauthorized Computer Access
Can Have Significant Legal Consequences
by Carolyne S. Kalson, Esq. Whether you have a business, or are an individual involved in a messy divorce, you should be aware of the New Jersey Computer Related Theft Act, N.J.S.A. 2C:20-25. The Act makes it a criminal offense to improperly access or alter information on a computer and/or its data base. The Act also prohibits altering, tampering or destroying financial instruments. Generally, the crime is of the third (3
rd) degree. If the data/computer system information is protected from disclosure by law or court rule, it is a second (2
nd) degree crime with a period of imprisonment. N.J.S.A. 2C:20-31.
There is also Civil Liability for computer related offenses. N.J.S.A 2A:38-1 et seq. The Civil Act provides for recovery of damages when a person or business has been damaged by the purposeful (or knowing), unauthorized, altering, damaging, taking or destroying of any data or computer component.
In the Fairway Dodge, LLC vs. Decker Dodge case, 191 N.J. 460 (2007), an automobile dealership brought legal action against two former employees, its competitor and the competitors owner and manager, alleging conspiracy to interfere with prospective economic relations, breach of the duty of loyalty, misappropriation of property and violation of the Computer Related Offenses Act. In the Fairway case, two former employees had copied Fairways customer and sales lists. The information was then provided to the subsequent employer. In the lower court, the former employees and Decker Dodge were found liable for damages under the Act. Compensatory Damages close to two million dollars were awarded as well as punitive damages, attorney’s fees ($525,628.26) and pre-judgment interest ($853,184.85). However, the Supreme Court found that the owner and manager of the subsequent employer were not liable as there was no evidence presented that implicated either in the effort to obtain information from Fairway Dodge’s computers.
Both the Criminal and Civil Acts protect employers that discover that current or former employees have improperly accessed or destroyed information. The penalties and damages can be severe. Due to the drastic consequences such a breach may have, injunctive relief is also available. If you would like more information on this subject, please contact my office at 732-785-0800.
DISCLAIMER: This article provides general information only and is not intended as legal advice. This article expresses the opinion of the author only and not the Brick Township Chamber of Commerce.
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