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Allstate Insurance Company v. Warns
1:11-cv-01846
D. Maryland
Feb 29, 2012
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Background

  • 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)
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Case Details

Case Name: Allstate Insurance Company v. Warns
Court Name: District Court, D. Maryland
Date Published: Feb 29, 2012
Docket Number: 1:11-cv-01846
Court Abbreviation: D. Maryland