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Article published May 3, 2009 Blount military contractor sued for $80 million
By Joel Davis of The Daily Times Staff
A business battle between two military contractors that began in Iraq is now being waged in Blount County Circuit Court.
EOD Technology Inc. of Lenoir City on Wednesday filed an $80 million lawsuit against Maryville-based Critical Mission Support Services, claiming the former employees who run CMSS stole trade secrets and violated a non-compete agreement.
Friendsville resident Eric Barton, president of CMSS, is named as a defendant in the case as well as Stephen J. Barton of Mississippi, Daniel J. Smith of Greenback, Kenneth D. Biles of Texas and Donald M. Patton of Lenoir City. The lawsuit alleges that the defendants founded CMSS while still working for EODT."While employed by EODT, S. Barton, E. Barton, Patton, Smith, and Biles were entrusted with proprietary and confidential business know-how ... and, as such, owed to EODT a fiduciary duty of loyalty not to convert and use such information for their own gain," wrote attorneys for EODT in the lawsuit.
Eric Barton said his company had been served Tuesday and was talking with its lawyers.
"The process will prove that 100 percent of what they said was false," Barton said. "It is a David and Goliath story. They made $275 million last year. ... They are very upset that we are successful."
Erik Quist, director of business and legal affairs for EODT, on Friday confirmed the lawsuit.
"EODT confirms it has taken legal action against the defendants listed in the lawsuit and take the matter very seriously," he said. "... We're not going to comment any further."
EODT claims in the lawsuit that the competing business has received nearly $80 million in federal contracts, ranging from a $17 million contract for vehicle maintenance in Iraq to $2 million for security services in Afghanistan.
"The foregoing contracts .... represent work that could have been performed by EODT's Critical Mission Support Business Unit," attorneys wrote in the lawsuit.
EODT and Barton made national news in 2007 when the U.S. Army Suspension and Debarment Office threatened to prohibit the company from participating in further federal contracts because of allegations that Barton used inside information to secure contracts. The Army dropped the department proceedings against Barton in December 2007 and those against EODT in January 2008.