ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, April 23, 1996 TAG: 9604230082
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
SOURCE: LAURENCE HAMMACK STAFF WRITER
A Delaware company has filed a $70 million lawsuit against two former employees at its Roanoke plant, accusing them of taking the industry's business and starting their own company.
Newell Industrial Corp., which manufactures vinyl window moldings, made the allegations in a lawsuit filed last week in Roanoke Circuit Court.
The suit accuses William Morris and Earl Dodson, the two senior employees at the company's Roanoke plant, of taking Newell's business from a Rocky Mount customer, MW Manufacturers Inc., and using it to start their own business, Lineal Technologies Inc., in January.
Although the lawsuit makes no mention of a noncompetitive contract, it states that Morris and Dodson "were bound to act in good faith ... for the rights of Newell."
The the suit alleges that Newell lost $12 million in business from MW Manufacturers, but seeks a total of $20 million in compensatory damages. The suit, filed by Roanoke lawyer Bradley McGraw, further requests that the compensatory damages be tripled, and seeks another $10 million in punitive damages.
Dodson contested the allegations, but said he could not elaborate because he had not seen the lawsuit. "It's not true on its face," he said.
LENGTH: Short : 32 linesby CNB