591 F. App'x 34
2d Cir.2015Background
- Amphenol sued its former employee Richard Paul (and subpoenaed TE Connectivity) for breach of contract, trade-secret misappropriation, breach of fiduciary duty, unfair competition, and violation of the Computer Fraud and Abuse Act (CFAA) after Paul left for a competitor.
- The operative contract was an Intellectual Property Agreement (IPA) and related Shareholder’s Agreements containing confidentiality and non‑compete provisions and an attorney’s‑fees clause tied to a breach by Paul.
- District Court granted summary judgment to Paul, denied Amphenol’s fee motion, and entered a discovery order affecting TE; Amphenol appealed those rulings.
- Amphenol alleged Paul both used/disclosed confidential information and downloaded electronic material beyond his authorization prior to departure, invoking the CFAA for “exceeding authorized access.”
- The District Court found the evidence insufficient to show Paul developed, produced, sold, or distributed competitive products or that he accessed data outside his authorization; it also concluded Amphenol was not entitled to contractually claimed fees because no breach was proved.
- The Second Circuit affirmed: summary judgment for Paul, denial of attorney’s fees, and the discovery ruling were all upheld.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of contract (IPA/non‑compete/confidentiality) | Paul engaged or attempted to engage in competitive product development and disclosed/used Amphenol confidential info | Email traffic shows no evidence Paul engaged in development/production/sale/distribution of competitive products | Affirmed—evidence insufficient to show breach |
| CFAA claim (exceeding authorized access) | Paul downloaded files unrelated to his job and thus exceeded authorization under the IPA | Amphenol cannot identify specific files outside Paul’s authorization; Paul had full access to strategic info | Affirmed—plaintiff offered only conclusory assertions, insufficient for CFAA liability |
| Attorney’s fees under the IPA | IPA entitles Amphenol to fees for Paul’s misconduct | Fee clause applies only upon a proven breach by Paul; no breach shown | Affirmed—no contractual entitlement to fees because no breach established |
| Discovery order re: TE Connectivity | Amphenol sought broader discovery from TE; disputed in camera review and scope | District Court conducted in camera review and limited disclosure; decision within discretion | Affirmed—no abuse of discretion in discovery ruling |
Key Cases Cited
- Burg v. Gosselin, 591 F.3d 95 (2d Cir. 2010) (summary judgment standard and inference drawing)
- Selevan v. New York Thruway Authority, 711 F.3d 253 (2d Cir. 2013) (plaintiff burden at summary judgment)
- Davis v. New York, 316 F.3d 93 (2d Cir. 2002) (conclusory allegations insufficient to defeat summary judgment)
- Postlewaite v. McGraw‑Hill, Inc., 411 F.3d 63 (2d Cir. 2005) (contract interpretation principles)
- Arista Records, LLC v. Doe 3, 604 F.3d 110 (2d Cir. 2010) (standard of review for discovery rulings)
- In re Sims, 534 F.3d 117 (2d Cir. 2008) (abuse of discretion standard for discovery)
- EM Ltd. v. Republic of Argentina, 695 F.3d 201 (2d Cir. 2012) (district court's broad latitude in discovery scope)
