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Financial Services Law Insights and Observations

Federal District Court Holds Work-Issued Computer Not A "Facility" Under Stored Communications Act

Electronic Records

Fintech

On September 18, the U.S. District Court for the Western District of Washington held that an employee’s computer, issued by the employer, is not a “facility” subject to protections of the Stored Communications Act. Roadlink Workforce Solutions, L.L.C. v. Malpass, No. 13-5459, 2013 WL 5274812 (W.D. Wash. Sept. 18, 2013). In this case, an employer sued a former employee for allegedly copying and then deleting certain information from an employer-issued computer before leaving to work for a competitor. The employer claimed a private right of action under the Stored Communications Act based on its allegation that the former employee intentionally exceeded his authorization to access a “facility through which an electronic communication service” it provided, and obtained and altered an electronic communication while it was in electronic storage. The court held that the employer-issued computer was not a facility through which an electronic communication service is provided, citing to previous decisions holding that including personal computing devices within the definition of “facility” would render other parts of the SCA illogical. The court reasoned that the plaintiff’s definition of facility would mean that any web site accessed on the computer would be a “user” of the communication service provided by the computer, and exempt from the SCA because of the exception for communications “of or intended for” that website. The court also held that the employer failed to demonstrate that the files accessed were in electronic storage because emails that have been opened but not deleted to not fit the SCA’s definition of “storage.” The court dismissed the employer’s SCA claim and a claim under the Computer Fraud and Abuse Act, but retained jurisdiction over certain state claims.