Nat'l Staffing Sols., Inc v. Sanchez
Nat'l Staffing Sols., Inc v. Sanchez
2022 WL 19354641 (M.D. Fla. 2022)
September 22, 2022

Byron, Paul G.,  United States District Judge

Mobile Device
Cloud Computing
Privilege Log
Forensic Examination
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Summary
National Staffing Solutions, Inc. and its former employee, Heidi Sanchez, were in dispute for violations of the Computer Fraud and Abuse Act and the Florida Computer Abuse and Data Recovery Act. The Court ordered the parties to meet and confer to identify all devices, email accounts, and other systems containing National's confidential data. The Defendant was also ordered to provide a sworn declaration and edit her profile on LinkedIn, and failure to comply with the Court's Preliminary Injunction may result in a finding of civil contempt or other sanctions.
Additional Decisions
NATIONAL STAFFING SOLUTIONS, INC. Plaintiff,
v.
HEIDI SANCHEZ, Defendant
Case No: 6:21-cv-1590-PGB-LHP
United States District Court, M.D. Florida
Filed September 22, 2022
Byron, Paul G., United States District Judge

ORDER

*1 This cause is before the Court on the Plaintiff's Motion for Order to Show Cause Why Defendant Should Not be Held in Civil Contempt (Doc. 44), and the Defendant's Response in Opposition. (Doc. 67). The Court held a hearing on September 22, 2022, during which the parties came to an agreement regarding the matters in dispute.
I. BACKGROUND
On September 28, 2021, Plaintiff National Staffing Solutions, Inc. (“National”) filed a complaint against its former employee, Heidi Sanchez, for violations of the Computer Fraud and Abuse Act, 18 U.S.C. § 1030 (“CFAA”), the Florida Computer Abuse and Data Recovery Act, Fla. Stat. § 668.802, et seq. (“CADRA”), and for breach of contract. (Doc. 1). According to the allegations of the Complaint, National is an employment agency that provides temporary and permanent placement of healthcare professionals across the United States. (Id., at ¶ 8). As part of her employment with National, on April 17, 2014, Ms. Sanchez executed a Noncompetition, Nonsolicitation, and Confidentiality Agreement (the “Agreement”), which required Ms. Sanchez to return to National all documents and electronically stored information (“ESI”) related to National provided to or acquired by her in connection with her employment, upon the request of National or upon the termination of her employment. (Id., at ¶ 13).
The Agreement further required Ms. Sanchez to provide passwords for all ESI, including information stored on smartphones, iPads, laptops, storage mediums such as Dropbox, and any other systems that store electronic information. (Id., at ¶ 14). National had the right to collect the devices and remove the ESI. (Id.). And during this litigation the Plaintiff was granted a Preliminary Injunction, which imposes a duty on Ms. Sanchez to provide the Plaintiff access to devices, email accounts, and other systems containing the Plaintiff's confidential data. (Doc. 35). The Plaintiff contends in the instant motion that Ms. Sanchez has failed to comply with the obligations imposed by the Preliminary Injunction. (Doc. 44).
II. LEGAL STANDARDS
A party seeking remedies for civil contempt must establish by clear and convincing evidence that the purported contemnor violated the court's prior order(s). Chairs v. Burgess, 143 F.3d 1432, 1436 (11th Cir. 1998); see also Ameriprise Fin. Servs., Inc. v. Lawton, No. 2:11-cv-573-FtM-29SPC, 2011WL6412424, at * 1 (M.D. Fla. Dec. 21, 2011) (the evidence must establish that the order was violated). The clear and convincing proof must demonstrate that: “1) the allegedly violated order was valid and lawful; 2) the order was clear and unambiguous; and 3) the alleged violator had the ability to comply with the order.” See Georgia Power Co. v. N.L.R.B., 484 F.3d 1288, 1291 (11th Cir. 2007). “Ambiguities should be resolved in favor of the party charged with contempt.” United States v. Barnette, 902 F. Supp. 1522, 1532 (M.D. Fla. 1995). Once a prima facie showing of a violation is made, the burden shifts to the alleged contemnor “to produce evidence explaining his noncompliance” at a “show cause” hearing. Citronelle–Mobile Gathering, Inc. v. Watkins, 943 F.2d 1297, 1301 (11th Cir.1991).. If the alleged contemnor makes a sufficient showing, the burden shifts back to the party seeking to show contempt to prove the ability of the alleged contemnor to comply with the court's prior order. Michael Grecco Prods., Inc. v. Soffersapp, LLC, No. 16-24966-CIV, 2017 WL 5665370, at *3 (S.D. Fla. Sept. 27, 2017), report and recommendation adopted, No. 16-24966-CIV, 2017 WL 5665382 (S.D. Fla. Nov. 8, 2017).
III. DISCUSSION
*2 The Plaintiff submits that Ms. Sanchez disclosed only two devices as possibly containing National's data — an iPhone and a Dell laptop computer. (Doc. 44, at 4). The Plaintiff contends that its forensic analysis shows that devices and accounts were not disclosed by Ms. Sanchez in violation of the Preliminary Injunction. (Id. at 8). The Plaintiff further alleges that Ms. Sanchez's prior counsel withheld 678 documents but has failed to file a privilege log, thus depriving National the opportunity to challenge the asserted privilege. (Id. at 4, n. 1).
Both Ms. Sanchez and her counsel expressed a willingness to work with counsel for National to identify devices, email accounts, and other systems within Ms. Sanchez's possession, custody, or control that store information and contain confidential data related to National's business. Accordingly, the Court did not rule on the merits of the Plaintiff's motion. Instead, the Court with the parties’ consent entered the following scheduling order:
1. The parties shall meet and confer on or before September 30, 2022, to identify all devices, email accounts, and other systems within Ms. Sanchez's possession, custody, or control which may contain National's business information.[1]
2. Should Ms. Sanchez take the position that a device, email account, or other system identified by the Plaintiff does not contain National's confidential information and other data related to National Staffing Solutions, Inc., and its business, she will provide a sworn declaration attesting to that fact.
3. All devices, email accounts, and other systems identified by the parties at the meet and confer will be made available for forensic examination, consistent with the Protocol previously entered between the parties, by October 7, 2022. The parties may agree to extend this deadline, and, absent an agreement, a party may file a motion to extend the deadline for good cause.[2]
4. The Defendant shall file a privilege log for all documents withheld by Ms. Sanchez or her counsel no later than October 14, 2022. The parties may agree to extend this deadline, and, absent an agreement, a party may file a motion to extend the deadline for good cause.
5. By close of business today, the Defendant shall edit her profile on LinkedIn to reflect that she is a former employee of National Staffing Solutions, Inc.
6. The parties shall submit a proposed Amended Case Management Scheduling Order within thirty (30) days of this Order extending the deadline for completion of discovery and all remaining deadlines. If the parties do not agree upon the proposed dates set forth in the Amended Case Management Scheduling Order, each party shall submit a proposed schedule, and the Court will impose new deadlines. While it is discouraged, the parties may file a joint motion to extend the deadline for submitting the Amended Case Management Scheduling Order if necessary.[3]
7. The parties shall promptly enter into a protective order and/or confidentiality agreement as may be required to facilitate the forensic examination.
8. The Defendant shall not destroy or delete any confidential information or data relating to National Staffing Solution, Inc. and its business that is in her possession, custody, or control, and shall not direct anyone else to destroy or delete such information and data.
9. The Plaintiff is permitted to re-depose Ms. Sanchez concerning whether the devices, email addresses, and other systems within her possession, custody, or control that may contain confidential information and other data related to National Staffing Solutions, Inc., and its business, if necessary.
IV. CONCLUSION
*3 The Defendant has been cautioned that failure to comply with the Court's Preliminary Injunction and with the deadlines established in this Order may result in a finding of civil contempt or other sanctions, including having her defenses stricken and entry of judgment in favor of the Plaintiff.
For the foregoing reasons, the Plaintiff's Motion for Order to Show Cause (Doc. 44) is DENIED WITHOUT PREJUDICE and the Parties are ORDERED to comply with the deadlines set forth in Section III (1–9) herein.
DONE AND ORDERED in Orlando, Florida on September 22, 2022.

Footnotes

The parties may meet and confer in person or via telephone, Zoom, or similar technology. The parties will also discuss whether Ms. Sanchez has met her obligation to provide National Staffing Solutions, Inc. a forensic copy, including all accompanying file and system metadata, of all documentation and electronically stored information she obtained from National and establish a deadline for production of this information and data.
If the Plaintiff seeks to inspect devices, email addresses, or and other systems within Ms. Sanchez's possession, custody, or control, it must demonstrate a good faith basis for believing the devices, email addresses, or other systems contain confidential information or other data related to National's business.
The discovery deadline of October 3, 2022 is no longer controlling.