In 2007 Atlantic Research Marketing Systems, Inc. (West Bridgewater, MA) sued Troy Industries, Inc. (West Springfield, MA) and its founder (a former A.R.M.S. employee) for misappropriation of trade secrets, breach of fiduciary duty, and deceptive trade practices in violation of 93A. A jury awarded A.R.M.S. $1.8M at trial for all but the 93A count, which Judge Saris reserved for later proceedings. Judge Saris just entered her decision, which can be found here.
The opinion summarizes the facts of the case, the salient points of which are: Troy worked at A.R.M.S. for a year or so before leaving following a disagreement with the owner. Very shortly thereafter Troy began marketing a similar product to one A.R.M.S. had in secret development while Troy was an employee. Troy was found to have engaged in misappropriation of trade secrets but there was no evidence that he had become an A.R.M.S. employee under false pretenses, that he intended any particular harm to A.R.M.S. through his actions, etc.
In her ruling Judge Saris found that Troy had engaged in deceptive trade practices but did not engage in overtly egregious behavior that was sufficiently “knowing and willful” to trigger the punitive remedy of enhanced damages. Because the plaintiff’s actual damages under 93A were covered in the jury’s award, the additional recovery was limited to an award of reasonable attorneys’ fees, expenses and costs, including expert fees.
Atlantic Research Marketing Systems, Inc. v. Troy Industries, Inc., 07-11576-PBS (D. Mass. May 11, 2010)
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