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USI sues three former producers over alleged move of clients to Howden
USI says the departing producers triggered broker-of-record letters within the contract window, and that the clients involved generated nearly $330,000 in annual revenue and brought USI about $2.3 million in yearly revenue through their business.
USI Insurance Services has sued three former producers, alleging they breached contractual obligations after resigning to join Howden US, according to a lawsuit filed in U.S. District Court for the Eastern District of Virginia, reported by Insurance Journal.
The brokerage alleges that the producers, Peter Dunst, William Seidler, and Jacob Spencer, each signed employment agreements that barred soliciting USI clients for two years, and prospective clients for one year, after leaving. USI says the trio provided the required 60-day notice starting June 1, but later clients handled by the defendants submitted broker-of-record letters naming Howden as their new broker.
USI claims the alleged conduct included violations of employment contracts, taking clients, and stealing confidential information. The suit says the clients involved generated nearly $330,000 in annual revenue to USI and that the producers’ business generated about $2.3 million in annual revenue for the broker.
USI is seeking damages and injunctive relief, arguing the defendants have breached, are breaching, and intend to further breach non-solicitation related covenants, including a clause that it says limits their ability to accept or service USI client accounts even if they did not directly solicit them.