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ARTICLE · 01 JULY 2014

Fees Awarded For First Time For Violation Of Delaware Computer Misuse Act

The Delaware Court of Chancery issued fees in the amount of $200,000 in a civil case for violation of Delaware’s Misuse of Computer System Information Act.

United StatesPrivacy

For the first time, the Delaware Court of Chancery issued fees in the amount of $200,000 in a civil case for violation of Delaware's Misuse of Computer System Information Act, 11 Del. C. § 941 in the case of Wayman Fire Protection, Inc. v. Premium Fire & Security, LLC, C.A. No. 7866-VCP (Del. Ch.  June 29, 2014).  Section 941 sets out remedies for violation of the Act.  The amount awarded was approximately 20% of the total fees incurred, net of expert fees.

In this action, a former employee misappropriated data from the computer of his former employer and used it with his new employer to compete.  In determining the amount of fees awarded, the Court considered the fact that the cause of action for breach of the Act was one of several claims alleged by Plaintiff.

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