Tort/Negligence – Labor & Employment – Theft by Employee – Trade Secrets – Hard Copies – Unjust Enrichment

The plaintiff-employers allege that, after she learned she was being laid off, the defendant (now former) employee took plaintiffs’ trade secrets – including some in the form of hard copies – to entice employment offers and financial rewards from plaintiffs’ competitors. The employee larceny and embezzlement statutes, G.S. §§ 14-74 and -80, list the types of property protected, and both statutes list “goods or other chattels.” Hard copies of business records are chattels belonging to the employer. Where plaintiff allege that defendant – while she was employed by plaintiffs – took possession of hard copies of invoices for unauthorized purposes, plaintiffs have stated a claim for civil liability for theft by employee under G.S. § 1-538.2.

The court denies defendant’s motion to dismiss plaintiffs’ claim for civil liability for theft by employee, but the court grants defendant’s motion to dismiss plaintiffs’ claim for unjust enrichment.

In support of their unjust enrichment claim, plaintiffs allege a taking in violation of their ownership rights, not a willing transfer of that ownership. Consequently, plaintiffs have not stated a claim for unjust enrichment.

Caliber Packaging & Equipment, LLC v. Swaringen (Lawyers Weekly No. 020-038-23, 14 pp.) (Julianna Theall Earp, J.) 2023 NCBC 38. Bryan Adams for plaintiffs; Joshua Bennett and Mitchell Hendrix Blankenship for defendant. North Carolina Business Court