That takes the cake: Downtown bakery owner sues former employee, owner of new bakery over use of trade secrets, proprietary information

QUINCY — Is there more than one way to bake a cake?

Krazy Companies, Inc. has filed a civil suit on April 28 in Adams County Circuit Court asking for $200,000 in damages from the owner of and an employee with The Mercantile Sweets + Goods, a local bakery and coffee shop that had its grand opening three days before the suit was filed.

Krazy Companies is the owner of Krazy Cakes, 512 Hampshire, which has been in business since 2012. Brian Lash is the owner of the restaurant and the president of Krazy Companies. Attorney Nick Rober represents Krazy Companies in the suit. 

Heather Risenhoover is the owner of The Mercantile Sweets + Goods, 6228 Broadway, and Christen Vogel is an employee. Vogel was hired in September 2021 by Krazy Cakes as a baker and the main cake decorator. Her employment with Krazy Cakes was terminated in May 2024, and the suit claims Vogel now is doing a similar job for The Mercantile Sweets + Goods.

The suit charges The Mercantile Sweets + Goods with stealing trade secrets, advertising materials and customers from Krazy Cakes. It lists four counts for which Krazy Companies is asking a judgment of $50,000 for each:

• Breach of contract (against Vogel)
• Tortious interference with prospective economic advantage or business expectancy, (against Vogel and Risenhoover)
• Misappropriation of trade secrets and proprietary information (against Vogel and Risenhoover)
• Unjust enrichment (against Vogel and Risenhoover)

A fifth count asks for an emergency temporary injunction and a permanent injunction, asking for Vogel and Risenhoover to be restrained from using proprietary information from Krazy Cakes or advertising goods or products owned or produced by Krazy Cakes. It also asks for The Mercantile’s website be made unavailable, and that the owners be restrained from using social media to promote the business or using any recipes, processes and trade secrets owned by Krazy Cakes.

Krazy Cakes offers coffee and espresso beverages, smoothies, breakfast items, a lunch menu, pastries and cupcakes. It also offers gluten-free, vegan and dairy-free options.

The Mercantile Sweets + Goods, which celebrated its grand opening on April 25, offers a selection of treats such cinnamon rolls, cupcakes, and coffee drinks.

The suit argues that when her employment was terminated by Krazy Cakes, Vogel contacted multiple Krazy Cakes clients, offering to complete their orders by herself. It claims several clients cancelled their requests and contracts with Krazy Cakes after Vogel’s dismissal.

The suit claims Vogel signed the Krazy Cakes employee handbook acknowledgement form, which included an agreement that “employees must carefully protect and must not disclose to any third party all confidential and proprietary information belonging to the Company or its customers.”

“Mercantile has posted photographs of Krazy Cakes’ designs as advertisements for their own baked goods,” the suit says. “The photographs on their Facebook page are good that were specifically designed and created by Krazy Cakes and specifically by Christen while employed at Krazy Cakes.”

The suit claims Mercantile has advertised cakes that were prepared and sold by Krazy Cakes, and the advertisements “confused and/or misrepresent(ed)” that they were prepared by and/or sold by Mercantile. It also claims the consultation process and posting Mercantile website is “substantially similar” to that used by Krazy Cakes.

The lawsuit asserts that Risenhoover is liable because “it was inevitable” Vogel disclosed Krazy Cakes secrets to her and used the secrets for her benefit.

When contacted about the lawsuit, Risenhoover declined to comment.

A hearing is scheduled for May 14 in Adams County Circuit Court before Circuit Judge Scott Larson.