LAWRENCEVILLE, Ga. – A jury has awarded an international arms dealer $3.6 million in damages, after he accused Boeing Co. of reneging on a deal to buy two Russian-made missile launchers and ruining his reputation among other potential customers.
Friday’s judgment gave Milton Blane, owner of Cumming-based Blane International Group Inc., $3.5 million in punitive damages and $100,000 in compensation for the missile launchers Boeing allegedly had intended to resell to the U.S. Navy.
In 1999, Blane approached the giant Chicago-based military contractor and offered to broker a deal with Russia for air-to-surface missiles that were available for purchase after the collapse of the Soviet Union, according to court documents.
Boeing was interested, but first asked Blane to arrange the purchase of two Russian-made missile launchers, apparently to make him “prove what he could do” before getting a larger order, said Blane’s attorney, Lawrence Newlin.
The company backed out of its agreement to pay $80,000 for the missile launchers, then proceeded to discredit Blane after he filed the lawsuit in 2002, Newlin said. The company wrote at least three letters to Ukrainian officials branding Blane an illegal arms dealer, he said.
Blane claimed the smear campaign cost him at least $27 million in lost business.
However, Boeing attorney Michael King argued that Blane’s business relationships were not hurt, saying the businessman met with Ukrainian officials as recently as last week.
Boeing attorneys declined comment on the verdict Friday, but Boeing spokesman Walt Rice called the Gwinnett County jury award “excessive and unjustified” and said the company would appeal.
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