Employer May Pursue Contractual Interference Claims Against Competitor for Raiding Employees and Customers

Short summary

The California Court of Appeal reversed a trial court dismissal, allowing Guild Mortgage to pursue tort claims against CrossCountry Mortgage for allegedly conspiring with Guild employees to gut its Kirkland branch and steal confidential customer data. The court held that employees owed Guild an undivided duty of loyalty and that the California Uniform Trade Secrets Act does not preempt claims under the Comprehensive Computer Data Access and Fraud Act. This ruling clarifies that employers can pursue multiple legal avenues when competitors raid staff and misappropriate electronic data.

• •California Court of Appeal revived tort claims against a competitor for employee raiding and data theft
• •Court held CUTSA does not preempt CCDAFA claims involving unauthorized electronic data access
• •Employees owe undivided duty of loyalty; branch managers owe fiduciary duty to employer

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