Allstate Insurance Company v. Warns
1:11-cv-01846
D. MarylandFeb 29, 2012Background
- Allstate sues former employee Jennifer Warns for breach of fiduciary duty and breach of contract.
- Warns left Allstate to work for Bennett & Albright, a plaintiff-side lead paint firm with many pending Allstate cases.
- Allege Warns had access to confidential/privileged information and removed or disclosed it after resignation.
- Allege a strategic lead paint memo and documents were missing from Warns’s files post-employment.
- Allstate seeks damages and broad injunctive relief to prevent further disclosure and to recover documents.
- Court proceedings included motions to dismiss/summary judgment, preliminary injunction, and sealing; rulings pending on these motions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether fiduciary-duty claim survives dismissal | Warns breached confidential info duty after employment | No independent fiduciary duty post-employment | Fiduciary-duty claim survives 12(b)(6) (plausible breach) |
| Whether contract claim is viable without a signed agreement | Code of Ethics creates contractual obligation | No clear contract formation or incorporation | Contract claim survives 12(b)(6) but scope/obligation uncertain |
| Whether punitive damages are available | Breach of fiduciary duty could support punitive damages | Punitive damages not available for breach of fiduciary duty; only for tort | Punitive damages dismissed; not available on these claims |
| Whether summary judgment is appropriate on the record | Discovery will show detailed confidential information misuse | Record insufficient; premature for summary judgment | Summary judgment denied without prejudice for further discovery |
| Whether a preliminary injunction should issue | Likely to succeed; irreparable harm from disclosure | Novel theories with circumstantial evidence; insufficient likelihood of success | Preliminary injunction denied; likelihood of success not shown |
| Whether to seal the filings | Documents contain privileged/confidential material | Public access should be preserved; redaction possible | Motions to seal denied; ordered redacted submissions and further justification |
Key Cases Cited
- Kann v. Kann, 690 A.2d 509 (Md. 1997) (no universal fiduciary tort; remedies depend on relation and relief sought)
- Winter v. NRDC, 555 U.S. 7 (S. Ct. 2008) (establishes four-factor test for preliminary injunctions)
- Real Truth About Obama, Inc. v. F.E.C., 575 F.3d 342 (4th Cir. 2009) (clarifies likelihood of success standard for injunctions post-Winter)
- Twombly v. Bell Atl. Corp., 550 U.S. 544 (S. Ct. 2007) (pleading must show plausible claims, not mere speculation)
- Md. Metals, Inc. v. Metzner, 382 A.2d 564 (Md. 1978) (limits contractual claims based on policy/handbook language)
