·  Issue: The central issue revolves around whether SysGen, a commercial IT service provider, can reset its client’s (Serinus’) administrator account passwords without notice, under the pretext of protecting the client’s systems during a billing dispute. The court ruled that this conduct is impermissible.

·  Facts:

• SysGen was Serinus’ IT service provider under a Field Service Maintenance Agreement (FSMA).
• A billing dispute arose, and SysGen changed Serinus’ administrator passwords, locking them out of their own systems.
• SysGen claimed this was to monitor a security threat, but failed to notify Serinus or return access.
• Serinus had to "break into" its own systems to regain control.

·  Claims: Serinus claimed breach of contract, conversion (illegal possession of property), breach of fiduciary duty, and intrusion upon seclusion (privacy breach).

·  Court’s Findings:

• Breach of Contract: SysGen breached the FSMA by locking Serinus out of its systems.
• Conversion: SysGen’s actions amounted to conversion, as it unlawfully took control of Serinus’ IT assets.
• No Fiduciary Duty: SysGen did not owe a fiduciary duty to Serinus.
• No Intrusion Upon Seclusion: The court did not find that SysGen intruded on Serinus’ privacy in a manner warranting this claim.

·  Damages:

• The court awarded Serinus compensatory and punitive damages, totaling $43,874.61 after offsetting SysGen’s counterclaims for unpaid invoices.