Opinion ID: 344913
Heading Depth: 3
Heading Rank: 2

Heading: The Subjective Standard

Text: 55 Yet even if constructive knowledge of the danger to Sundstrand of omitting certain facts is imputed to Meers, an omission caused because Meers genuinely forgot about these facts would not be actionable, even if such an omission derived from inexcusable neglect. Cf. SEC v. Bausch & Lomb, 420 F.Supp. 1226, 1241-1244, nn. 3 & 4 (S.D.N.Y.1976). But we need not remand for a factual determination here since a subsequent pre-January 9 event removed Meers' omission from the putative realm of mere inexcusable neglect. At the January 2, 1969, board meeting to approve the Sundstrand merger proposal, in Meers' presence Burke asked if Sundstrand had been told of the Burke and Ernst & Ernst reports and Huarisa replied that it had not. Therefore, rather than putting the question out of his mind, Meers must have consciously decided not to disclose (and did not disclose) 25 the substance of the reports to Sundstrand. 26 Thus recklessness is established as a matter of law by the facts found by the trial court. Bailey v. Meister Brau, Inc., 535 F.2d 982, 993-994 (7th Cir. 1976). 56