USI Insurance Services has sued three former producers, who “reneged on their contractual obligations” in a move to competitor Howden US, the brokerage alleged.
According to a lawsuit filed earlier this month in U.S. District Court for the Eastern District of Virginia, producers Peter Dunst, William Seidler, and Jacob Spencer resigned on June 1 to join Howden US Specialty who, in the words of USI, is a “known raider of insurance brokers.”
Multiple brokers have suits filed against former employees and Howden. Allegations include violations of employees contracts, taking clients, and stealing confidential information.
In the USI suit, the broker claims Dunst, Seidler, and Spencer – who each reside in Alexandria, Virginia – each signed employee agreements preventing them from soliciting USI clients for two years or prospective clients for one year if they were to leave USI.
Though the trio submitted 60-day notice as required by their contracts, shortly after this time period several clients managed and serviced by the defendants submitted broker-of-record letters showing Howden as their new broker, USI said.
The clients generated nearly $330,000 in annual revenue to USI, according to the suit. Dunst, Seidler, and Spencer presided over business for USI that brought in about $2.3 million in annual revenue.
“Upon information and belief, defendants have breached, are breaching, and intend to further breach the covenants of their employment agreements requiring them to refrain from soliciting clients and accepting or servicing USI client accounts and/or active prospective clients,” said USI, which seeks damages and injunctive relief.
USI claims that even if Dunst, Seidler, and Spencer did not directly solicit the accounts, a different clause in their employment agreements prohibits them from accepting or providing services to these accounts.
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