Engineer Sues Boeing Over Legal Costs

Boeing Co., the second-biggest U.S. defense contractor, was sued Tuesday by a former worker who wants the company to pay legal costs for his defense in a criminal case involving trade secrets.

William Erskine, a 13-year engineer with Boeing and McDonnell Douglas, which Boeing acquired in 1997, was indicted last year by a federal grand jury in Los Angeles in connection with illegally obtained Lockheed Martin Corp. documents that helped Boeing win a contract to develop a rocket that launches military satellites.

Erskine and another former employee also indicted in connection with the trade-secret case, Kenneth Branch, filed wrongful-termination suits against Boeing that were dismissed in 2002.

“Erskine acted in good faith and in a manner he believed to be in” the “best interests of Boeing, and Erskine had no reasonable cause to believe his conduct was unlawful,” according to the suit filed in Orange County Superior Court.

A Boeing spokesman said the company hadn’t seen the suit and declined to comment.

Erskine claims he was indicted for acts he performed as part of his duties, and Boeing investigations found he never used the confidential documents. Under California law, employers are obligated to pay the legal costs of employees who face legal actions that arise from their duties, Erskine’s complaint says.

Shares of Chicago-based Boeing fell 18 cents to $42.36 on the New York Stock Exchange.