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American Family Mutual Insurance Company v. Roth

United States Court of Appeals for the Seventh Circuit

485 F.3d 930 (2005)

Facts

Several insurance agents (the agents) (defendants) sold insurance products on behalf of American Family Mutual Insurance Company (the company) (plaintiff). The agents signed an agency agreement, which required them to upload all customer information onto the company’s database and agree not to use or disclose the information except in the course of the company’s business. The company’s database filtered customer information and identified customers’ potential for purchasing specific insurance products. The agents could only access the information for their respective customers. The company subsequently terminated the agents, and the agents began soliciting the company’s customers, using a list they compiled separately from the company’s database. However, most of the customers on the list were also in the company’s database. The company filed suit against the agents for misappropriation of the company’s trade secrets. A magistrate judge granted the company’s motion for a preliminary injunction, holding that the agents were prohibited from downloading customer information from the company’s database. The agents appealed.

Rule of Law

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Issue

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Holding and Reasoning (Posner, J.)

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A "yes" or "no" answer to the question framed in the issue section;
A summary of the majority or plurality opinion, using the CREAC method; and
The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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