PUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
BONNIE VAN ALSTYNE,
Plaintiff-Appellee,
v.
ELECTRONIC SCRIPTORIUM, LIMITED,
Suggestion of Bankruptcy filed
August 16, 2007,
Defendant-Appellant,
No. 07-1892
and
EDWARD LEONARD,
Defendant,
and
BRETT LEONARD,
Party in Interest.
2 VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM
BONNIE VAN ALSTYNE,
Plaintiff-Appellee,
v.
EDWARD LEONARD,
Defendant-Appellant,
and
ELECTRONIC SCRIPTORIUM, LIMITED, No. 07-1899
Suggestion of Bankruptcy filed
August 16, 2007,
Defendant,
and
BRETT LEONARD,
Party in Interest.
Appeals from the United States District Court
for the Eastern District of Virginia, at Alexandria.
Leonie M. Brinkema, District Judge.
(1:06-cv-01364-LMB)
Argued: December 4, 2008
Decided: March 18, 2009
Before WILLIAMS, Chief Judge, and SHEDD and AGEE,
Circuit Judges.
Vacated and remanded with instructions by published opin-
ion. Chief Judge Williams wrote the opinion, in which Judge
Shedd and Judge Agee joined.
VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM 3
COUNSEL
ARGUED: Nicholas Hantzes, HANTZES & REITER,
McLean, Virginia, for Appellants. Christopher Alan Abel,
TROUTMAN SANDERS, L.L.P., Norfolk, Virginia, for
Appellee. ON BRIEF: Dawn L. Serafine, TROUTMAN
SANDERS, L.L.P., Norfolk, Virginia; Elizabeth A. Billings-
ley, TROUTMAN SANDERS, L.L.P., McLean, Virginia, for
Appellee.
OPINION
WILLIAMS, Chief Judge:
During Bonnie Van Alstyne’s employment with Electronic
Scriptorium Limited ("ESL"), ESL’s president, Edward Leon-
ard, began accessing her personal email account. Van Alstyne
discovered Leonard’s actions, which continued for more than
a year after Van Alstyne left ESL, while litigating an unre-
lated matter with ESL in Virginia state court. Thereafter, Van
Alstyne brought suit under the Stored Communications Act,
18 U.S.C.A. § 2707(a) (West 2000) ("SCA"), alleging that
Leonard and ESL illegally accessed her personal email
account. Following trial, a jury awarded Van Alstyne
$150,000 in statutory damages and $75,000 in punitive dam-
ages against Leonard. The jury awarded an additional $25,000
in statutory damages and $25,000 in punitive damages against
ESL. The district court also awarded Van Alstyne
$135,723.56 in attorney’s fees and costs.
On appeal, ESL and Leonard contend that the district court
erred in permitting the jury to award: (1) statutory damages of
$1,000 per violation of the SCA; (2) punitive damages; and
(3) attorney’s fees, without first finding that Van Alstyne suf-
fered actual damages. We agree with ESL and Leonard in
part, concluding that plaintiffs pursuing claims under the SCA
4 VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM
must prove actual damages in order to be eligible for an
award of statutory damages. We disagree, however, that this
requirement holds for punitive damages or attorney’s fees.
Accordingly, we vacate the awards in favor of Van Alstyne
and remand for further proceedings.
I.
ESL is a small data-conversion company owned and oper-
ated by Leonard and his wife, Brett, in Leesburg, Virginia.
ESL hired Van Alstyne, a friend of the Leonards, in January
2001 to serve as Vice President of Marketing. ESL assigned
Van Alstyne a company email account, but she also used her
private password-protected email account with America On-
Line ("AOL") to conduct business from time to time.
According to Van Alstyne, in October 2001, Leonard sexu-
ally propositioned her, but she declined his advances. Shortly
thereafter, in December, Van Alstyne and ESL agreed that
Van Alstyne would be recategorized as an independent con-
tractor with the company. In March 2002, ESL unilaterally
terminated Van Alstyne.
Van Alstyne thereafter pursued several claims for relief
against ESL: (1) a sexual harassment charge with the Equal
Employment Opportunity Commission ("EEOC"); (2) a claim
for unemployment benefits with the Virginia Employment
Commission ("VEC"); and (3) a claim for unpaid commis-
sions in Virginia state court. Van Alstyne’s EEOC claim was
dismissed for want of jurisdiction because ESL employed
fewer than fifteen individuals, and she eventually nonsuited
her claim for unpaid commissions. Van Alstyne did, however,
prevail on her claim with the VEC.
Meanwhile, ESL instituted an action against Van Alstyne
in Virginia state court, alleging several business torts against
her.1 It was in the midst of discovery in that suit that the seeds
1
ESL filed for bankruptcy in August 2007 and this proceeding remains
pending as an adversary proceeding in bankruptcy court.
VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM 5
for the instant action were sown. During a deposition in Feb-
ruary 2006, ESL’s counsel used several emails from Van Als-
tyne as exhibits. Van Alstyne believed that these exhibits
were actually taken from her AOL account and not her com-
pany account. With her suspicions aroused, Van Alstyne
began pursuing the possibility that Leonard and ESL had bro-
ken into that private account. Sure enough, during a June
2006 deposition, Leonard admitted that he accessed Van Als-
tyne’s AOL account after she left the company. He further
testified that the emails produced during the deposition repre-
sented the only occasions on which he had accessed her account.2
No doubt disturbed by Leonard’s behavior, Van Alstyne
promptly instituted an action against Leonard in the United
States District Court for the Eastern District of Virginia, alleg-
ing that Leonard’s actions violated the SCA—part of the
Electronic Communications Privacy Act ("ECPA"), 18
U.S.C.A. § 2510, et seq. (West 2000)—and the Virginia Com-
puter Crimes Act, Va. Code Ann. §§ 18.2-152.1, et seq.
(2004). Van Alstyne requested compensatory and punitive
damages under the SCA, contending that Leonard’s actions
caused her "actual damages," or, in the alternative, that she
was "entitled to an award of the statutory minimum damage
figure provided for by the [SCA]." (J.A. at 33.) Van Alstyne’s
claim for actual damages encompassed a claim for attorney’s
fees and costs in defending the ESL suit and a claim for dam-
ages for mental anguish and emotional distress arising from
defending the ESL suit.
Before Leonard responded, Van Alstyne filed an amended
complaint adding ESL as an additional defendant. Van Als-
tyne filed a second amended complaint in March 2007,
2
These statements were not entirely true. Indeed, Leonard ultimately
admitted to accessing Van Alstyne’s AOL account at all hours of the day,
from home and internet cafes, and from locales as diverse as London,
Paris, and Hong Kong. During discovery, Leonard produced copies of 258
different emails he had taken from Van Alstyne’s AOL account.
6 VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM
removing her claims of mental anguish and emotional distress
in order to "maintain a modicum of privacy and avoid further
invasion of it through discovery." (J.A. at 126). After Leonard
and ESL filed a motion to compel evidence of Van Alstyne’s
"actual damages," Van Alstyne amended her complaint for a
third time. The Third Amended Complaint withdrew the
claims under the Virginia Computer Crimes Act against both
Leonard and ESL and also "withdr[e]w any claim for dam-
ages . . . premised upon the costs she incurred in defending
the [ESL] suit." (J.A. at 22.) Van Alstyne’s claim for relief
was thus limited to punitive damages and "statutory minimum
damage[s]" under the SCA. (J.A. at 27.)
Leonard and ESL moved for summary judgment, relying
principally on the Supreme Court’s opinion in Doe v. Chao,
540 U.S. 614 (2004), for the proposition that the SCA did not
provide for statutory damages absent a showing that the plain-
tiff suffered actual damages. See Doe, 540 U.S. at 627 (hold-
ing that, under the Privacy Act, $1,000 minimum statutory
damages award was available "only to plaintiffs who suffered
some actual damages").
On June 8, 2007, the district court denied the motion for
summary judgment, and the case continued to a jury trial. On
June 21, 2007, the jury returned a verdict in favor of Van Als-
tyne against Leonard in the amount of $150,000 in compensa-
tory damages and $75,000 in punitive damages and against
ESL in the amount of $25,000 in compensatory damages and
$25,000 in punitive damages. The compensatory damages
award represented a statutory damages award of $1,000 for
each violation of the SCA. ESL and Leonard filed a motion
for a new trial and judgment as a matter of law, which the dis-
trict court denied. On August 13, 2007, the district court
entered its final judgment, which also awarded Van Alstyne
$124,763.38 in attorney’s fees and $10,960.18 in costs against
Leonard and ESL, jointly and severally. Leonard and ESL
noted a timely appeal.
VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM 7
II.
On appeal, Leonard and ESL contend that the district court
erred in permitting the jury to award Van Alstyne statutory
damages, punitive damages, and attorney’s fees and costs
without first requiring her to prove actual damages under the
SCA.3 We review these issues de novo. Henson v. Liggett
Group, Inc., 61 F.3d 270, 274 (4th Cir. 1995). "When inter-
preting statutes we start with the plain language." U.S. Dep’t
of Labor v. N.C. Growers Ass’n, 377 F.3d 345, 350 (4th Cir.
2004). "It is well established that when the statute’s language
3
Van Alstyne argues that Leonard and ESL failed to preserve this argu-
ment for appeal because, in her view, Leonard and ESL are attempting to
appeal the denial of a summary judgment ruling. That, Van Alstyne cor-
rectly notes, they may not do. See, e.g., Varghese v. Honeywell Int’l Inc.,
424 F.3d 411, 421-23 (4th Cir. 2005). We have reviewed the record and
conclude that the appellants did properly preserve this issue by filing a
motion for summary judgment and then filing a Rule 50(a) motion for
judgment as a matter of law. See Fuesting v. Zimmer, 448 F.3d 936, 941
(7th Cir. 2006) (recognizing that "[a] renewed motion for judgment as a
matter of law under Rule 50(b) is not a condition precedent to appeal from
a final judgment. If there have been errors at the trial, duly objected to,
dealing with matters other than the sufficiency of the evidence, they may
be raised on appeal from the judgment even though there has not been
either a renewed motion for judgment as a matter of law or a motion for
a new trial . . . ." (quoting 9A Charles Alan Wright & Arthur R. Miller,
Federal Practice & Procedure § 2540 (2d ed. 1995)).
After oral argument, we ordered the parties to file supplemental briefs
regarding the impact of the Supreme Court’s decision in Unitherm Food
Sys., Inc. v. Swift-Eckrich, Inc., 126 S. Ct. 980 (2006), on this issue. In
Unitherm, the Court held that failure to file a Rule 50(b) motion removed
an appellate court’s power to review a sufficiency of the evidence chal-
lenge on appeal. Id. at 989. Having reviewed the parties’ supplemental
briefs, we easily conclude that Unitherm is not applicable to this case, in
which Leonard and ESL are not challenging the sufficiency of the evi-
dence supporting the jury’s verdict. Fuesting, 448 F.3d at 941 (noting
"without an explicit declaration from the Supreme Court, we will not
strain to read [Unitherm] as overturning a right of appellate review that is
stated in the Federal Rules of Evidence, manifested in the precedents of
numerous court of appeals decisions, and observed in the leading trea-
tises").
8 VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM
is plain, the sole function of the courts—at least where the
disposition required by the text is not absurd—is to enforce it
according to its terms." Lamie v. U.S. Tr., 540 U.S. 526, 534
(2004) (internal quotation marks omitted). In interpreting the
plain language of a statute, we give the terms their "ordinary,
contemporary, common meaning, absent an indication Con-
gress intended [it] to bear some different import." North Car-
olina v. Tenn. Valley Auth., 515 F.3d 344, 351 (4th Cir. 2008)
(internal quotation marks omitted). We follow "the cardinal
rule that statutory language must be read in context [because]
a phrase gathers meaning from the words around it." Gen.
Dynamics Land Sys., Inc. v. Cline, 540 U.S. 581, 596 (2004)
(internal quotation marks omitted).
III.
A.
Section 2701 of the SCA creates a criminal offense for
whoever "intentionally accesses without authorization a facil-
ity through which an electronic communication service is pro-
vided" or "intentionally exceeds an authorization to access
that facility," and by doing so "obtains, alters, or prevents
authorized access to a wire or electronic communication while
it is in electronic storage in such system." 18 U.S.C.A.
§ 2701(a)(1-2).
Section 2707 provides a private cause of action for "any . . .
other person aggrieved" by a violation of § 2701. 18 U.S.C.A.
§ 2707(a). Under § 2707, a district court may award equitable
or declaratory relief, a reasonable attorney’s fee and other
costs, and "damages under subsection (c)." 18 U.S.C.A.
§ 2707(b). Subsection (c) provides:
The court may assess as damages in a civil action
under this section the sum of the actual damages suf-
fered by the plaintiff and any profits made by the
violator as a result of the violation, but in no case
VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM 9
shall a person entitled to recover receive less than
the sum of $1,000. If the violation is willful or inten-
tional, the court may assess punitive damages. In the
case of a successful action to enforce liability under
this section, the court may assess the costs of the
action, together with reasonable attorney fees deter-
mined by the court.
Id. § 2707(c).
In Doe, the Supreme Court reviewed the Privacy Act,
which provided that in cases in which the United States had
willfully or intentionally violated the Act, it would be liable
for "actual damages sustained by the individual as a result of
the refusal or failure, but in no case shall a person entitled to
recovery receive less than the sum of $1,000." 5 U.S.C.A.
§ 522a(g)(4)(A). Interpreting this language, the Court con-
cluded that by using the phrase "actual damages sustained,"
Congress "made specific provision . . . for what a victim
within the limited class may recover." 540 U.S. at 620. And,
the "simplest reading" of the clause "a person entitled to
recovery, . . . looks back to the immediately preceding provi-
sion for recovering actual damages." Id. A contrary view, the
Court continued, "simply pays no attention to the fact that the
statute does not speak of liability (and consequent entitlement
to recovery) in a freestanding, unqualified way, but in a lim-
ited way, by reference to enumerated damages." Id. at 621.
Accordingly, the Doe Court concluded that statutory damages
were available only to plaintiffs who first proved that they
suffered actual damages. Id. at 627. The Doe Court reached
this result using a "straightforward textual analysis." Id. at
620.
Like the Privacy Act, the SCA limits an award of damages
to the "actual damages suffered," as well as "any profits," thus
"ma[king] specific provision . . . for what a victim . . . may
recover." Id. Furthermore, the SCA and Privacy Act contain
the substantively identical following phrase: "but in no case
10 VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM
shall a person entitled to recover receive less than the sum of
$1,000," which "looks back to the immediately preceding pro-
vision for recovering actual damages." Id. Indeed, the only
differences between the damages provisions in the two stat-
utes is the SCA’s use of the term "suffered" instead of "sus-
tained" and its use of the phrase "and any profits made by the
violator." Neither difference, it seems to us, has any material
impact. Thus, we are left to interpret statutory language in all
important respects identical to that already interpreted by the
Supreme Court. Our answer, it appears, should be obvious:
just as the Privacy Act required proof of "actual damages" as
a prerequisite to recovering statutory damages, so does the
SCA.
Buttressing this conclusion is the fact that Congress, if it
wished the result that Van Alstyne presses for, could have
written a simpler, unambiguous statute. As we explained in
interpreting the Privacy Act:
For instance, section 4 and subsection (A) could
have been phrased in the following, or similar,
terms: "the United States shall be liable to the indi-
vidual in an amount equal to the sum of (A) which-
ever is greater: actual damages sustained by the indi-
vidual as a result of the refusal or failure, or $1,000."
Doe v. Chao, 306 F.3d 170, 178 (4th Cir. 2002), aff’d Doe,
540 U.S. at 627.
Congress has followed such a course in several enactments.
The Wiretap Act, which like the SCA is found within the
ECPA, provides:
In any other action under this section, the court may
assess as damages whichever is the greater of . . . the
sum of the actual damages suffered by the plaintiff
and any profits made by the violator . . . or . . . statu-
VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM 11
tory damages of whichever is the greater of $100 a
day for each day of violation or $10,000.
18 U.S.C.A. § 2520(c)(2). Likewise, the Driver’s Privacy Pro-
tection Act lists, as remedies, "actual damages, but not less
than liquidated damages in the amount of $2,500." 18
U.S.C.A. § 2724. Cf. Saunders v. Branch Banking & Trust
Co. of Va., 526 F.3d 142, 149 (4th Cir. 2008) (noting, under
Fair Credit Reporting Act, that plaintiff was entitled to "com-
pensatory damages or statutory damages").
In sum, the Supreme Court has already interpreted lan-
guage that is substantively identical to § 2707(c) to require
proof of actual damages as a prerequisite to recovering statu-
tory damages, and Congress has shown the ability to enact
statutes that clearly award statutory damages absent proof of
actual damages. Accordingly, we hold that the plain language
of § 2707(c) unambiguously requires proof of actual damages
as a prerequisite to recovery of statutory damages.
B.
Van Alstyne makes several arguments in response, none of
which we believe are well-taken. First, Van Alstyne contends
that the structure and legislative history of the SCA dictate a
different result, a conclusion reached by the district courts to
have considered the issue. See In re Hawaiian Airlines, Inc.,
355 B.R. 225, 231 (D. Haw. 2006) (concluding that "the
Supreme Court’s interpretation of the Privacy Act in Doe v.
Chao does not apply to the similar statutory language found
in the Stored Communications Act"); Freedman v. Town of
Fairfield, No. 3:03CV01048 (PCD), 2006 U.S. Dist. LEXIS
66857, at *8 (D. Conn. Sept. 19, 2006) (allowing recovery of
statutory damages and explaining that "if Doe cited Section
2707(c) as authority for Congress’ intention as to damages
recoverable under the earlier enacted Privacy Act, it would
have said so as dicta, instead of rejecting its history as not
determinative"); Cedar Hill Assocs. v. Paget, No. 04 C 0557,
12 VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM
2005 U.S. Dist. LEXIS 32533, at *8-9 (N.D. Ill. Dec. 9, 2005)
(noting the language in the Privacy Act and SCA were "ad-
mittedly very similar," but nonetheless concluding that the
legislative history dictated finding that statutory damages
could be awarded without proof of actual damages under the
SCA).
To that end, Van Alstyne refers back to § 2707(a), which
provides that any "person aggrieved" may "recover" from the
violator. According to Van Alstyne, this provision means that,
in order to be a person "entitled to recover" under § 2707(c),
a plaintiff need only be a "person aggrieved," not a person
who suffered actual damages. A closer look, however, renders
this argument unpersuasive. The phrase Van Alstyne refers to
provides that an aggrieved person may "recover . . . such
relief as may be appropriate." 18 U.S.C.A. § 2707(a). Subsec-
tion (b) then defines appropriate relief to include preliminary
and other equitable or declaratory relief and attorney’s fees
and costs. § 2707(b). It also provides that appropriate relief
may include "damages under subsection (c)." § 2707(b)(2).
Thus, a person aggrieved is not automatically a person "enti-
tled to recover" as defined by subsection (c). Instead, a person
aggrieved may recover appropriate relief, which encompasses
damages as defined and limited by subsection (c). The refer-
ence to a person "entitled to recover" in § 2707(c) is best read,
just as in Doe, to refer back to the beginning of that sentence,
that is, a person who "suffered" actual damages. That conclu-
sion cannot be avoided by the circular logic Van Alstyne pro-
poses.
Van Alstyne next points us to legislative history, specifi-
cally, the Senate Report that accompanied the passage of the
SCA. Of course, when statutory language is plain and unam-
biguous—and we believe that the language of the SCA
is—there is no need for recourse to legislative history. More-
over, the legislative history Van Alstyne relies on, which con-
sists of a single sentence in the Senate Report from 1986, is
not as helpful as Van Alstyne suggests and does not provide
VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM 13
"clearly expressed legislative intention" in conflict with our
result. Consumer Product Safety Comm’n v. GTE Sylvania,
Inc., 447 U.S. 102, 108 (1980). The Senate Report provides,
in discussing § 2707(c), that "damages under the section
includ[e] the sum of actual damages suffered by the plaintiff
and any profits made by the violator as the result of the viola-
tion as provided in (c) with minimum statutory damages of
$1,000." S. Rep. No. 99-541, at 43 (1986). The mere mention
of "statutory damages" in the legislative history hardly works
to conclusively establish that a plaintiff is entitled to mini-
mum statutory damages absent any proof of actual damages.
The same Senate Report also addresses amendments to the
ECPA, specifically the remedies provision of the Wiretap Act,
18 U.S.C.A. § 2520. In describing those amendments, the
Report explains,
Proposed subsection 2520(c) provides a method
for the computation of damages. The general rule is
set out in paragraph (2) of subsection (c). The court
may assess damages consisting of whichever is the
greater of (A) the sum of the plaintiff’s actual dam-
ages and any profits the violator made as a result of
the violation; or (B) statutory damages of whichever
is the greater of $100 a day or $10,000.
Id. at 27 (emphasis added).
Unlike the single sentence Van Alstyne relies upon, this
portion of the Senate Report clearly specifies that a court may
award, in actions under the Wiretap Act, actual damages or
statutory damages. Such clear authorization is missing from
the sentence quoted above addressing the SCA.
Van Alstyne next suggests that an examination of the com-
mon law roots of the SCA and the Privacy Act must lead us
to a contrary conclusion. In Doe, after concluding that the
statutory text of the Privacy Act did not support the plaintiff’s
position, the Court further noted that the plaintiff’s argument
14 VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM
was also at "odds with the traditional understanding that tort
recovery requires not only wrongful act plus causation reach-
ing to the plaintiff, but proof of some harm for which dam-
ages can reasonably be assessed." Doe, 540 U.S. at 621.
Van Alstyne contends that unlike the Privacy Act, which
the Doe Court found akin to defamation or invasion of pri-
vacy, the SCA is analogous to the common law of trespass
and that, at common law, a trespass action did not require
proof of actual damages.4 See Restatement (Second) of Torts
§§ 158 and 163 (1965). In fact, according to Van Alstyne,
damages are allowed even when a trespass actually benefits
the property owner, because "[t]he wrong for which a remedy
is given under the rule stated in this Section consists of an
interference with the possessor’s interest in excluding others
from the land." Restatement (Second) of Torts § 163 cmt. d.
Van Alstyne, however, conflates trespass to land with trespass
to chattel, which more closely mirrors the SCA. And, at com-
mon law,
One who commits a trespass to a chattel is subject
to liability to the possessor of the chattel if, but only
if . . .
(b) the chattel is impaired as to its condition, qual-
ity, or value, or
(c) the possessor is deprived of the use of the chat-
tel for a substantial time, or
(d) bodily harm is caused to the possessor, or
harm is caused to some person or thing in which the
possessor has a legally protected interest.
4
ESL and Leonard argue that the appropriate common law analogue is
the same invasion to privacy tort examined in Doe. Because the common
law of trespass does not aid Van Alstyne’s argument, we have no need to
opine on the precise common law analogue for the SCA.
VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM 15
Restatement (Second) of Torts § 218.
As the comments to sections (b) and (c) explain, "[t]he
interest of a possessor of a chattel in its inviolability, unlike
the similar interest of a possessor of land, is not given legal
protection by an action for nominal damages for harmless
intermeddlings with the chattel." Restatement (Second) of
Torts § 218 cmt e. Thus, nothing in the common law of tres-
pass to chattel alters "the traditional understanding that tort
recovery requires not only wrongful act plus causation reach-
ing to the plaintiff, but proof of some harm for which dam-
ages can reasonably be assessed." Doe, 540 U.S. at 621.
Van Alstyne’s final argument is that the Doe Court implic-
itly concluded that the SCA permits an award of statutory
damages without proof of actual damage. Unfortunately for
Van Alstyne, it was the dissenting justices in Doe, not the
majority, that concluded the SCA permitted such an award.
See Doe, 540 U.S. at 639-640 (Ginsburg, J., dissenting) (not-
ing the SCA also "ha[s] been understood to permit recovery
of the $1,000 statutory minimum despite the absence of
proven actual damages"). Van Alstyne argues, however, that
in responding to the dissent the majority in Doe, instead of
addressing the dissent’s contention, concluded "the trouble
with [plaintiff’s] position is its reliance on the legislative his-
tories of completely separate statutes passed well after the Pri-
vacy Act." Doe, 540 U.S. at 626. According to Van Alstyne,
if the SCA and the Privacy Act’s remedies are similarly lim-
ited, the Doe Court should have said so. See also Freedman,
2006 U.S. Dist. LEXIS at *9 (noting "if Doe cited Section
2707(c) as authority for Congress’ intention as to damages
recoverable under the earlier enacted Privacy Act, it would
have said so as dicta, instead of rejecting its history as not
determinative"). Of course, the Supreme Court has "consis-
tently refused to give" opinions "upon issues which remain
unfocused because they are not pressed before the Court with
that clear concreteness provided when a question emerges
precisely framed and necessary for decision from a clash of
16 VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM
adversary argument exploring every aspect of a multi-faced
situation embracing conflicting and demanding interests."
United States v. Fruehauf, 365 U.S. 146, 157 (1961). The Doe
Court’s refusal to interpret a statute not before it does not
carry the authoritative weight Van Alstyne would prescribe it.
C.
A "straightforward textual analysis" leads us to conclude
that the district court erred in permitting the jury to award
Van Alstyne statutory damages without requiring her to prove
that she sustained actual damages. Doe, 540 U.S. at 620.
Accordingly, the awards of $150,000 against Leonard and
$25,000 against ESL must be vacated.
IV.
ESL and Leonard raise two additional arguments that
deserve our consideration: that, under the SCA, Van Alstyne
must also prove actual damages to recover either (1) punitive
damages or (2) attorney’s fees. On both questions, we agree
with Van Alstyne that proof of actual damages is not required
before an award of either punitive damages or attorney’s fees.
A.
Although "[t]here is no established federal common law
rule that precludes the award of punitive damages in the
absence of an award of compensatory damages," People
Helpers Found., Inc. v. City of Richmond, 12 F.3d 1321, 1326
(4th Cir. 1993), we have held, in accordance with "the major-
ity rule" that, absent statutory language to the contrary, puni-
tive damages are not recoverable absent proof of actual
damage, id. at 1327.
The SCA, we believe, provides such language. Section
2707(c) states, "[i]f the violation [of the SCA] is willful or
intentional, the court may assess punitive damages." 18
VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM 17
U.S.C.A. § 2707(c). This sentence lacks the limiting language
associated with an award of actual damages and statutory
damages, with no references to persons "entitled to recover."
The sole limitation is that the violation of the SCA be "willful
or intentional," a threshold which the jury found to be met in
this case.
Accordingly, we find no error in the district court’s award
of punitive damages absent a showing of actual damages. See
Saunders, 526 F.3d at 152-155 (approving award of punitive
damages under the Fair Credit Reporting Act without award
of actual damages); Yohay v. City of Alexandria Employees
Credit Union, Inc., 827 F.2d 967, 972 (4th Cir. 1987) (noting
"[a]ctual damages are not a statutory prerequisite to an award
of punitive damages under the [Fair Credit Reporting Act]").
We must vacate and remand this award, however, for the dis-
trict court to reevaluate in light of our ruling above that Van
Alstyne was not entitled to statutory damages in this case
absent proof of actual damages.
B.
Finally, ESL and Leonard challenge the award of attorney’s
fees and costs to Van Alstyne. Section 2707(b)(3) provides
that appropriate relief for an "aggrieved" person may include
"a reasonable attorney’s fee and other litigation costs reason-
ably incurred." 18 U.S.C.A. § 2707(b)(3). Section 2707(c),
which describes the requirements for an award of damages,
concludes by noting that "[i]n the case of a successful action
to enforce liability under this section, the court may assess the
costs of the action, together with reasonable attorney fees
determined by the court." 18 U.S.C.A. § 2707(c). This latter
sentence, ESL and Leonard contend, limits the award of attor-
ney’s fees to individuals who prove actual damages. We dis-
agree. Certainly, Congress could have spoken more clearly on
this issue, with the reference to attorney’s fees and costs in
subsection (c) seemingly superfluous in light of subsection
(b)(3). We conclude, however, that § 2707(b)(3) authorizes an
18 VAN ALSTYNE v. ELECTRONIC SCRIPTORIUM
award of attorney’s fees as appropriate relief apart from any
requirement that damages, actual or otherwise, be recovered.
Nonetheless, like the award of punitive damages, we must
vacate the award of attorney’s fees and costs for the district
court’s further consideration in light of Van Alstyne’s lower
degree of success. See, e.g., Farrar v. Hobby, 506 U.S. 103,
114 (1992) (noting, in interpreting 42 U.S.C.A. § 1988, "the
degree of the plaintiff’s overall success goes to the reason-
ableness of a fee award. . . ." (internal quotation marks omit-
ted)).
V.
We agree with Leonard and ESL that the SCA, containing
language in all material respects identical to the Privacy Act,
cannot be read to permit an award of statutory damages absent
proof of actual damages. We accordingly vacate the statutory
damages awards against Leonard and ESL and remand the
case for further proceedings. Although we agree with Van
Alstyne that proof of actual damages is not a prerequisite to
recovery of punitive damages or attorney’s fees and costs, we
vacate those awards for the district court’s reconsideration in
light of our ruling that Van Alstyne was not entitled to statu-
tory damages. We express no opinion as to whether Van Als-
tyne, at this late stage, may yet again amend her complaint to
plead actual damages.
VACATED AND REMANDED WITH INSTRUCTIONS