Fourth Circuit allows Punitive Damages without Proof of actual damages for plaintiff after employer Hacked into former employee’s AOL account

March 23rd, 2009   Filed Under Stored Communications Act  

In adding teeth to the federal anti-hacker email privacy law, the Fourth circuit ruled a few days ago that a plaintiff does not have to prove actual damages to receive punitive damages under the Stored Communications Act (SCA).  In Van Alstyne v. Electronic Scriptorium, F.3d, 2009 WL 692512 (4th Cir. March 18, 2009), Bonnie Van Alstyne was awarded punitive damages and not actual damages when she proved that her employer intentionally hacked into her personal AOL email account and downloaded her personal emails without her authorization.  The court ruled that the plaintiff is entitled to damages without having suffered any actual damages in order to punish the defendant for such a violation and deter future misconduct.

This is a significant development in privacy protection law because the general rule is that punitive damages cannot be awarded without proof of actual damages.  The Court found its authority in the civil enforcement section of the SCA.  The section states:

If the violation is willful or intentional, the court may assess punitive damages 

It’s also a crime to hack into an employee’s email account as per the Electronics Communications Privacy Act.  The offense is punishable by fine and/or up to 5 years in prison the first time and a fine and/or up to ten years imprisonment all subsequent times. 

(a) Offense.— Except as provided in subsection (c) of this section whoever—

(1) intentionally accesses without authorization a facility through which an electronic communication service is provided; or

(2) intentionally exceeds an authorization to access that facility;

and thereby obtains, alters, or prevents authorized access to a wire or electronic communication while it is in electronic storage in such system shall be punished as provided in subsection (b) of this section.

(b) Punishment.— The punishment for an offense under subsection (a) of this section is—

(1) if the offense is committed for purposes of commercial advantage, malicious destruction or damage, or private commercial gain, or in furtherance of any criminal or tortious act in violation of the Constitution or laws of the United States or any State—

(A) a fine under this title or imprisonment for not more than 5 years, or both, in the case of a first offense under this subparagraph; and

(B) a fine under this title or imprisonment for not more than 10 years, or both, for any subsequent offense under this subparagraph;

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