Anniston Star
April 26, 2003

Company sues Centech, pursues action against county over contract to distribute preparedness equipment

By Nathan Solheim
Star Staff Writer
04-26-2003

A company has filed a $20 million lawsuit in U.S. District Court against the Centech Group, alleging breach of contract and fraudulent suppression of material facts. The lawsuit also seeks legal action against the Calhoun County Commission.

Centech won a $14 million county contract in March to distribute equipment such as air filters, shelter-in-place kits and protective hoods to county residents to provide protection in case of an accident at the Anniston Army Depot's chemical weapons stockpile.

Clean Air Systems, Inc. filed the lawsuit last week, saying Centech agreed to use Honeywell air filters, supplied by Clean Air, in a subcontractor-contractor relationship.

The Bellevue, Wash.-based company further alleges Centech suppressed or omitted information about the contract negotiations, about agreements between the two companies, and about another subcontractor.

"Throughout the pre-bid and bid process, Clean Air had a contract with Centech, whereby Centech agreed to use the Honeywell (air filters) supplied by Clean Air in the event Centech was awarded the contract," said Eddie Leitman, a Birmingham attorney retained by Clean Air.

Clean Air is seeking $5 million in compensatory damages and $15 million in punitive damages from Centech and the subcontractor that was eventually chosen to provide the item, Austin Air Filters Ltd. of Buffalo.

Leitman said he hopes to have the case in court by the end of the year.

Centech officials said Friday they were aware a lawsuit could be filed, but said they did nothing wrong.

"I am confident we have performed in good faith all our business obligations," said Fernando Galaviz, Centech president. "We are in the business to support our clients and support their needs."

Clean Air also has filed a statement of claim against the Calhoun County Commission, alleging it violated the bid law by accepting an air filter that had not been part of Centech's original bid and that was chosen only after the contract was awarded and had not received the proper federal certification.

The suit says the commission lowered the specifications required for the air filters, decreasing the vapor removal rate and the filtered airflow rate. The suit claims that with the change in specifications, Austin Air had an air filter that met the requirements.

When sealed bids were opened, the suit says, none of the nine respondents included an Austin product. They all included the Honeywell filter, the suit claims.

Clean Air's statement of claim against the county means the commission must investigate the matter within 90 days. If after the investigation the commission does not admit wrongdoing, both the county and the individual commissioners then would be added to the lawsuit.

Calhoun County Administrator Ken Joiner downplayed the suit's impact on the commission and on the effort to distribute protective equipment to local residents.

"We're not, hopefully, going to be involved in some hurt feelings between a subcontractor and a contractor," Joiner said. "Those negotiations were between them and we feel good about where we are and what's been done. Everything I can see has been done with the best interests of the people of Calhoun County."

The suit also alleges Austin Air maliciously and unjustifiably interfered with the business relationship between Clean Air and Centech.

The Calhoun County Commission awarded the contract to Centech with the recommendation of Jacksonville State University, which was brought in to objectively evaluate the bids. Dr. Barry Cox, who works for the Institute for Emergency Preparedness at JSU, led the effort.

Funds for the program falls under the Chemical Stockpile Emergency Preparedness Plan, or CSEPP.

Centech opened the CSEPP Training and Distribution Center in April and began giving out protective equipment to residents living closest to the chemical weapons incinerator.