John Pochiro and Karen Pochiro, Husband and Wife v. The Prudential Insurance Company of America

ORDER

Appellee’s petition for rehearing is denied.

The Court’s opinion filed on July 14, 1987, is hereby withdrawn.

OPINION

In January 1983, the Prudential Insurance Company of America (Prudential) sued John Pochiro and his wife, Karen, in Arizona state court, pleading various causes of action based upon allegations that Pochiro appropriated for his own use confidential customer information obtained while Pochiro was an employee of Prudential (the Prudential action). In December 1983, the Pochiros sued Prudential in Arizona state court, pleading various causes of action based upon allegations that Prudential defamed John Pochiro by calling him “a crook” and engaged in other wrongful conduct intended to damage his competing insurance business (the Pochiro action). Prudential removed the Pochiro action to federal district court, and the district court denied the Pochiros’ motion to remand.

On August 23,1985, the Arizona superior court entered a final judgment for Prudential in the Prudential action. On October 8, 1985, the federal district court entered a final judgment dismissing the Pochiros' action as a compulsory counterclaim to Prudential’s state court action. The Pochiros…