Reference no: EM131675655

Case: INTERNATIONAL AIRPORT CENTERS v. JACOB CITRIN COURT OF APPEALS FOR THE SEVENTH DISTRICT

FACTS: The defendant, Mr. Citrin, was employed by the plaintiffs' real estate business, International Airport Centers (IAC). In the course of their business relationship, IAC lent Citrin a laptop to use to record work data. Eventually, Mr. Citrin quit his job at IAC and started his own business, which was in breach of his employment contract. Before returning the laptop to IAC, he deleted all of the business data in the computer. Ordinarily, pressing the Delete key on a computer merely removes the index entry, and such deleted fi les are easily recoverable. But Mr. Citrin loaded into the laptop a secure-erasure program to prevent the recovery of the fi les. Subsequently, CASE 20-1 IAC sued him for violating the Computer Fraud and Abuse Act and his duty of loyalty that agency law imposes on an employee. The district court dismissed the suit and IAC appealed.

REASONING: Citrin's authorization to access the laptop terminated when he resolved to destroy his employer's fi les, in violation of the duty of loyalty agency law imposes on an employee. Judge Posner cited an important precedent stating that the authority of the agent terminates if he acquires adverse interests or if he is otherwise guilty of a serious breach of loyalty to the principal

DECISION AND REMEDY: Reversed and remanded. IAC has a claim against Citrin for breaching his common law duty of loyalty.

SIGNIFICANCE OF THE CASE: When entering into agency relationships, all parties to the relationship need to understand their rights and duties. This case helps clarify an agent's duty of loyalty to his employer.

CRITICAL THINKING: Why do you think the original trial court ruled in the opposite manner? Why might you conclude that the agent in the case (Citrin) did not violate his duties to the principal (IAC)?

ETHICAL DECISION MAKING: Recall the WH framework for ethics. A classmate argues that Citrin made the correct decision in deleting the data because he himself was a stakeholder and deleting the data bettered his own position. Do you agree? Who are the relevant stakeholders negatively affected by Citrin's decision to destroy the business data on the computer?