Jury awards USI $3 million in noncompete countersuit in opposition to Lockton

A Florida jury awarded $3 million to dealer USI Insurance coverage Providers in a countersuit claiming that Lockton Corporations LLC’s southeast operation and former brokers breached noncompete and nonsolicitation agreements in a “fastidiously orchestrated scheme” to steal enterprise, as per case paperwork.

The case began when former USI workers sued the corporate, hoping a court docket would rule its noncompete and nonsolicitation agreements unenforceable.

The workers stated the agreements have been anti-competitive, violated state regulation, and meant to instill a “concern of retribution” to retain workers. The go well with additionally famous that the Federal Commerce Fee had proposed a rule to ban the practices.

Within the preliminary criticism, former producer and lead litigant Matthew Simmons stated a USI regional govt warned him that if he left “the quantity of litigation USI company will put you thru can be even worse to your well being.”

The workers additionally stated they left USI over “inadequate sources and assist,” based on their criticism. For instance, USI dismantled its personal fairness diligence crew, forcing Simmons to rebuild his enterprise centered on personal fairness placements.

USI responded with a countersuit, alleging that Simmons orchestrated a “long-developed and punctiliously structured scheme” to take its purchasers to Lockton, which supported and inspired the plan. In its counterclaim, USI stated it paid Simmons thousands and thousands of {dollars} in retention bonuses for purchasers that he took to his new employer.

USI additionally alleged that the workers filed the preliminary lawsuit as a proactive measure, realizing they might be hit with a breach of contract go well with.

The countersuit additionally named Simmons’ protégé Jack Mitchell, who left the corporate to hitch Lockton lower than 20 minutes after Simmons resigned. As well as, six USI workers, not social gathering to the countersuit, adopted Simmons and Mitchell.

In the course of the trial, USI offered emails despatched to Simmons and Mithcel at their USI e-mail addresses, by which a consumer particulars receiving the paperwork to maneuver their account to Lockton. The consumer then despatched a discover of dealer change type to Lockton, together with within the e-mail a message that stated, “Matt (Simmons) and his crew are merely the BEST!” Simmons was additionally copied on this e-mail at his USI account.

USI defended its contract agreements within the countersuit by stating they’re normal within the business. One in every of its spokespeople stated, “We respect the jury recognizing that Lockton purposely interfered with the USI employment contracts, which include the identical kind of restrictions Lockton locations by itself workers.”

The jury’s verdict ordered Lockton to pay $915,000 to USI for aiding and abetting the scheme. Simmons was ordered to pay a complete of $1.98 million for breach of contract and breaking his fiduciary responsibility, whereas Mitchell should pay $152,500 for a similar prices.

Julie Gibson, a Lockton spokesperson, stated in an emailed assertion the corporate would have most popular a distinct verdict however was happy the jury solely awarded USI a fraction of the damages it sought.

“Matt Simmons and Jack Mitchell are nice additions to the Lockton crew,” Gibson stated.