Pulte Homes, Inc. v. Laborers' International Union

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Pulte Homes, Inc. v. Laborers' International Union of North America is a U.S. Sixth Circuit Court of Appeals case from 2011. The court heard that the Laborers’ International Union (LIUNA) launched a nationwide campaign against Pulte after a construction worker was fired. The union bombarded Pulte with thousands of phone calls and emails to its offices and executives, including messages about alleged unfair labor practices and sometimes containing threats and profanity. The goal was to damage Pulte’s reputation and disrupt business.

Pulte sued under the Computer Fraud and Abuse Act (CFAA), which makes certain computer crimes and also allows civil suits for damages. The district court had rejected Pulte’s CFAA claim, saying Pulte hadn’t shown LIUNA intentionally damaged Pulte’s systems. On appeal, the Sixth Circuit reversed.

Key points from the ruling:
- The “transmission” theory: A party can be liable under the CFAA if its actions intentionally cause damage to a protected computer. The court held that a flood of calls and emails can count as a “transmission” that damages a system by reducing its ability to operate or access data.
- Intent to damage: LIUNA’s large volume of communications and its goal to “fight back” showed an intent to cause some harm, even if the union didn’t know the exact consequences.
- The “access” theory rejected: Pulte’s systems were public-facing and available to anyone who contacted them, so LIUNA’s contact did not amount to “without authorization” access.
- Broader impact: The decision is part of a trend where federal appeals courts interpret the CFAA more broadly, potentially covering non-hacking conduct that harms computer systems. Critics argue this could sweep up ordinary protest activities and other coordinated communications.

Bottom line: The Sixth Circuit reinstated Pulte’s CFAA claim, finding that an intentional barrage of calls and emails can amount to "damage" under the CFAA, while an “access” claim failed because the systems were open to the public.