Friends worked well together - until lines became too blurred | Dallas Morning News | Ne...

Page 1 of 2

Friends worked well together - until lines became too blurred

12:00 AM CDT on Thursday, March 20, 2008 By ANGELA SHAH / The Dallas Morning News ashah@dallasnews.com

Tony Alardin was sure he could turn his wireless surveillance system idea into a viable business. And as a first-time entrepreneur, he welcomed the advice and, later, the money of a close friend who already had his own business. That friend, Gregg Hoss, chief executive of Hoss Equipment Co. in Irving, had run the business since 1990, selling heavy construction and mining equipment all over the world. The two men's wives had been best friends, and the couples socialized often. "Gregg Hoss was my best man in our wedding and my wife, Kathryn Alardin, and his wife, Angela Hoss, were like sisters," he said. RICKY MOON/Special "He was hearing me talk about it all the time, and he gave me suggestions," Contributor Mr. Alardin said. "It seemed like a no-brainer to work together." Tony Alardin (above) went into business with Gregg So Mr. Hoss invested in Mr. Alardin's company, Remote Monitoring Hoss, who was the best Technologies, and the men joined forces in September 2001. man at his wedding. After a few years in business Mr. Alardin, who had largely been working from home, also took an office together, Mr. Alardin got at Hoss Equipment. And a couple of new employees for RMT went on the locked out of his office, Hoss payroll, Mr. Alardin said. and Mr. Hoss later sued Mr. Alardin over loans. The men jointly chatted up potential customers from Hoss Equipment's booths at trade shows. By the end of 2004, they were doing business under the name SiteWatch, and revenue had reached $127,000, about four times what they were in 2002, Mr. Alardin said. But all the connections eventually created the sort of gray areas that would send the men to court. "Looking back, things were too commingled," Mr. Alardin said. A personal dispute over comments Mr. Hoss claimed his partner had made about his wife spilled over into their business affairs, and Mr. Alardin said he found himself locked out of his office in March 2005. Mr. Hoss declined to speak about issues relating to the lawsuit. Mr. Hoss sued his now-former friend in January 2006, claiming that Mr. Alardin had failed to repay

http://www.dallasnews.com/sharedcontent/dws/bus/smallbiz/stories/DN-alardin_20bus.AR... 4/22/2008

Friends worked well together - until lines became too blurred | Dallas Morning News | Ne... Page 2 of 2

loans Mr. Hoss had made to him, according to court documents. Last month, a Dallas County jury awarded Mr. Alardin $3 million in damages but also directed Mr. Alardin to repay the loans from Mr. Hoss. The judge in the case is expected to hand down a final decision within the next month. In the meantime, both men said the experience taught them what might seem an obvious lesson: Get it in writing. "Contact legal representation and make sure all of the terms, conditions, liabilities and benefits of any joint venture are completely spelled out and agreed to," Mr. Hoss said. Mr. Alardin agreed, advising partners not to shy away from confrontation. "Don't be afraid to offend someone," he said. "If you do, chances are you should get out of it anyway." Despite the bitter legal batter, both say they would do business with a friend again. "The friendship wasn't why the business partnership failed," Mr. Alardin said.

http://www.dallasnews.com/sharedcontent/dws/bus/smallbiz/stories/DN-alardin_20bus.AR... 4/22/2008