1. Richard and Suzanne Williams owned Sycamore City Cheese Co. Sycamore City sold its products to three major customers that used the cheese as a “filler” to blend into their cheeses. In 1982, Mark Case, a certified public accountant, became Sycamore City’s accountant and the Williams’ personal accountant. The Williams had known Case since he was seven years old, and even before he became their accountant, he knew the details of Sycamore City’s business. Case’s duties went beyond typical accounting work, and when the Williams were absent, he was put in charge of operations. In 1992, Case was made a vice president of the company, and a year later he was placed in charge of day to day operations. He also continued to serve as Sycamore City’s accountant. The relationship between Case and the Williams deteriorated, and in 1995, he resigned as Sycamore City’s employee and as its accountant. Less than two years later, Case opened Brent Foods, Inc., to make the same products as Sycamore City by the same process and to sell the products to the same customers. Case located Brent close to Sycamore City’s suppliers. Sycamore City filed a suit in a Connecticut state court against Case and Brent, alleging, among other things, misappropriation of trade secrets. Sycamore City argued that it was entitled to punitive damages because Case’s conduct was “willful and malicious.” Case responded in part that he did not act willfully and maliciously because he did not know that Sycamore City’s business details were trade secrets. Were Case’s actions “willful and malicious”? Were they ethical? Explain.
Answer
Mark Case was associated with Sycamore City’s business for a long time and was trustworthy to the owners of the company. He acted as an accountant and performed day-to day operations of the company. So it can be assumed the company secrets, account details and