THYROFF V. NATIONWIDE MUTUAL INSURANCE CO.
8 N.Y.3d 283, 864 N.E.2d 1272 (2007)
NATURE OF THE CASE: The Second Circuit certified a question as to whether the common-law
cause of action of conversion applies to certain electronic computer records and data.
FACTS: Thyroff (P) was an insurance agent for Nationwide Mutual Insurance Company (D). D
leased P computer hardware and software to facilitate the collection and transfer of
customer information to D. P also used the system for personal e-mails, correspondence and
other data storage that pertained to his customers. On a daily basis, D would automatically
upload all of the information from P's system, including P's personal data, to its
centralized computers. D then repossessed its system and P further access to the computers
and all electronic records and data. P was unable to retrieve his customer information and
other personal information that was stored on the computers. P sued asserting a claim for
the conversion of his business and personal information stored on the computer hard drives.
D motioned to dismiss, and the court held that the complaint failed to state a cause of
action for conversion because P did not allege that D exercised dominion over the electronic
data to his exclusion and it was undisputed that D owned the system. This appeal resulted
along with the certified question.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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