Arthur J Gallagher and Alliant settle $900,000 poaching dispute

Broker Arthur J Gallagher and Alliant have settled a dispute over Gallagher employees hired by intermediary services provider Alliant.

Gallagher had sued Alliant over the hiring of former Gallagher insurance broker Charles Long, which was contractually prohibited from working for direct competitor Alliant, according to the claim.

“Nonetheless, Mr. Long and Alliant, with knowledge of Long’s post-employment restrictive covenants, have wrongfully solicited Gallagher’s clients and employees. As a result of Mr. Long and Alliant’s improper and unlawful conduct, including but not limited to, their wrongful solicitation of Gallagher clients and employees, Gallagher has suffered at least $900,000 in lost business and will continue to suffer substantial harm if their misconduct is allowed to continue,” according to a filing at the United States District Court for the District of Massachusetts.

With the assistance of Alliant, Long solicited two other Gallagher employees which were also subject to various post-employment obligations and encouraged them to leave Gallagher and join him at Alliant, according to the suit document.

Since the departure of Long and the two other employees, approximately nine Gallagher clients previously serviced by Long have executed broker of record authorisation forms to facilitate the transfer of their accounts from Gallagher to Alliant, Gallagher claimed.

Earlier in the year Alliant had won a similar dispute, when a California jury in March dismissed the poaching claims made by re/insurance broker Aon, and ruled in favour of insurance brokerage firm Alliant Insurance Services.

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