REIT claims ex-VP stole trade secrets.(News)(real estate investment trusts)(Milestone Realty Trust)

Automotive News, May, 2004 by Harris, Donna

Byline: Donna Harris

The two real estate investment trusts that serve new-car dealers in the United States are locked in a legal battle that has stalled the newer trust's effort to expand.

Capital Automotive REIT of McLean, Va., a 7-year-old publicly held trust, filed a lawsuit in March against Michael Burkitt, the CEO of a newly formed rival, Milestone Realty Trust of Herndon, Va. The suit, brought in a Virginia court, claims Burkitt, a former Capital executive, stole trade secrets. It seeks $5 million in damages.

In response, Milestone sued Capital in April for more than $450 million in damages, alleging that Capital has interfered with its business.

Capital and Milestone buy dealership properties and lease them back to dealers in...

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