TCT seeks injunction, files federal suit
Suit against Campbells alleges misappropriation of trade secrets
May 31, 2017
WORLAND —Tri-County Telephone Association has filed suit against a former board member and his wife, alleging Misappropriation of Trade Secrets.
The suit was filed, by TCT through attorney Bill Simpson, in Cheyenne U.S. District Court on May 26 against Joe Campbell and Barbara Campbell and “John and Jane Does 1-10.”
The suit claims that Campbell was a member of the Tri-County Telephone and TCT board from Feb. 24, 2003 until the board was dissolved following a vote to sell the company, effective Jan. 1, 2015.
The Campbells have filed a lawsuit against Tri-County Telephone and TCT claiming fraud and violation of Wyoming statute concerning the sale or disposition of assets of a cooperative utility. It also alleges civil conspiracy to defraud and breach of fiduciary duties.
According to the complaint, TCT was sold at the end of 2014 for $51 million, less $12 million to retire debt, less $10 million held back for “unforeseen liabilities” leaving $29 million paid to the “owners” or Tri-County Telephone cooperative members. The suit alleges that TCT held hard assets of over $90 million.
According to the federal suit filed by Tri-County Telephone, TCT claims that Campbell was the lone board member to oppose the sale and as a former board director had access to certain information that at the time was “confidential, proprietary, or otherwise not public information.”
The suit claims that Campbell failed to return his company-issued laptop, a laptop that the company alleges had “TCT’s trade secrets thereon.” Trade secrets, they allege, “derive independent economic value, actual and potential, from not being generally known … This is information that would significantly benefit TCT’s competitors if they were to obtain it.”
The Tri-County Telephone suit also claims intentional or tortious interference with a contract, specifically with Union Bank.
The suit claims that the Campbells have demonstrated knowledge of the contractual relationship between Union Bank and TCT, in addition to a credit agreement, by publicizing the relationship through a website and “other means including confidential documents.
TCT also claims “tortious interference with a prospective economic advantage” specifically with the Cody Data Center.
According to the complaint, “TCT had a business expectancy and prospective economic advantage with a developer to undertake the construction and build out of a lucrative data center in Cody, and also separately had engaged in advanced negotiations with another company to be the data center’s anchor tenant.
“While in advanced negotiations with both the developer and the anchor tenant. Defendants intentionally acted to prevent any such agreement from being entered into, souring the prospective economic advantage and disrupting the business expectancy. Specifically, Defendants intentionally disseminated or otherwise implicated TCT in business practices and/or business dealings which were allegedly unethical, illegal, or otherwise improper, causing developer and the anchor tenant to terminate their relationships with TCT.”
TCT also claims Campbells “intentionally interfered with certain customer agreements through their improper communications, publications and sharing of non-public information.”
The company alleges violation of the Computer Fraud and Abuse Act, alleging Campbell continues to access information from the TCT laptop he allegedly did not return to the company when the board was dissolved.
No specific monetary amount is sought in the suit except what is deemed just by the court.
The suit does seek a temporary injunction to prohibit the Campbells “from continuing to use trade secrets” during the civil cases that are in district court and now in federal court.
TCT claims in the suit, “TCT cannot be compensated adequately for the continued misappropriation and illegal use of trade secrets during the pending lawsuits.”