United States v. Batti
2011 U.S. App. LEXIS 674
| 6th Cir. | 2011Background
- Batti worked in Campbell-Ewald's IT department for about six years before being fired in March 2007.
- He accessed Campbell-Ewald's server and copied confidential CEO files, later moved to a disk given to the Vice Chairman.
- The disk contained confidential information and GM advertising footage; Batti discussed weaknesses in security with Naporano.
- FBI and a computer-security firm investigated; Batti admitted accessing the system and Majoros's webmail account.
- Campbell-Ewald incurred $47,565 for the security firm's work and counsel; the district court valued the information by the $305,000 cost of the GM footage, and ordered restitution of $47,565.
- Batti was tried bench-wise on a single count under 18 U.S.C. §1030(a)(2)(C) and (c)(2)(B)(iii).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Value of information exceeding $5,000 | Batti argues no impact or loss in value. | Batti argues value not proven to exceed $5,000. | Value exceeded $5,000; district court properly valued. |
| Permissible valuation method | Value should be market value, if any. | Cost of production is a permissible method when market value is unavailable. | Cost of production is a permissible basis to determine value. |
| Restitution amount | Restitution should cover broader losses including employee time. | Only reasonable, necessary costs may be recovered. | District court did not abuse discretion; $47,565 restitution appropriate. |
Key Cases Cited
- United States v. Stegora, 849 F.2d 291 (8th Cir. 1988) (any reasonable method may be used to value stolen goods lacking market value)
- United States v. Cummings, 798 F.2d 413 (10th Cir. 1986) (valuation methods for non-market-valued information may be reasonable)
- United States v. Drebin, 557 F.2d 1316 (9th Cir. 1977) (jury instruction allowing 'any reasonable method' for value)