Hagen v. Burmeister & Associates, Inc.

Summary

The Minnesota Supreme Court considered whether an insurance agency could be held vicariously liable for an employee's misappropriation of trade secrets under the Minnesota Uniform Trade Secrets Act. The court assumed, for purposes of the case, that vicarious liability could apply to a UTSA violation, but held that the employee's conduct was not shown to be foreseeable within the scope of employment because the plaintiff presented no evidence that misappropriation of trade secrets was a well-known hazard in the insurance industry. The court reversed the court of appeals.

Holdings

1. Vicarious liability for a Minnesota Uniform Trade Secrets Act violation is not converted into vicarious liability for breach of contract merely because the same conduct also breaches the employee's contract.
2. American was not vicariously liable for Hagen's UTSA violation because Burmeister presented no evidence establishing that the conduct was foreseeable as a risk of American's business or a well-known hazard in the insurance industry.

Questions Presented

1. Whether American could be vicariously liable for Hagen's alleged Minnesota Uniform Trade Secrets Act violation when the underlying conduct also violated Hagen's contract with Burmeister.
2. Whether the evidence raised a genuine issue of fact that Hagen's misappropriation of trade secrets was foreseeable and related to his duties so as to fall within the scope of his employment with American.

Disposition

reversed