Marko, in which line of code does that error happen? The compiler tells you. Look in your source code at that line. Please copy & paste the error message from the console window.
I don't see anything strange in the code you posted, and I've never seen that compiler error before.
I'll guarantee that message isn't coming from a Java compiler in the traditional sense; there's no such thing as "literal mode" when it comes to compiling Java source. But you mention Web Services, and so perhaps this message is coming from some Web Services-related tool, compiling a WSDL file or something.