Willis argues that last July, Alliant orchestrated a “massive resignation” of producers and other employees of its public entity and education practice in its Charlotte-based Willis Towers Watson Southeast (WTW SE) office, in North Carolina.
In the aftermath of Alliant’s alleged raid, Willis claims that to date, it has lost two of its top executives and top producers, as well as at least seven other employees who managed the business books attributed to these. producers. He also claims to have lost a public entity and education practice client to a competitor.
Willis is suing Alliant and six former employees Mark A Goode, Michael R. Honeycutt, Taylor Forst, Kim Rice, Rebecca Ann Lee and Sean Keenan.
Willis’ complaint alleges that Alliant instigated employees to leave and that employees violated their employment contracts by failing to give 15 days’ notice of their resignation and by soliciting Willis’ clients and, in some cases, employees. colleagues, within 24 months without notice. solicitation period had elapsed.
“This lawsuit stems from Alliant’s efforts to illegally destroy the highly specialized public entity and educational practice of WTW SE, based in Charlotte. Together with Alliant, several former employees of WTW SE are violating their valid and reasonable restrictive covenants, ”the complaint states.
Goode and Honeycutt were senior executives of the public entity and education practice of WTW SE and had knowledge of the compensation of all other members of the public entity team and the practice of the education, according to the complaint.
The complaint states that on July 20, 2021, Honeycutt and Goode resigned from WTW SE to work for Alliant within hours of each other with immediate effect. On July 21, 2021, Forst immediately resigned and the next day Keenan followed suit, according to the complaint.
The complaint accuses Goode of taking WTW SE’s customer account information and using that list to “contact and solicit customers, prospects and employees of WTW SE in violation of its contractual obligations.”
According to Willis, Alliant had offered Honeycutt an annual salary of $ 1.4 million with a five-year warranty, nearly $ 300,000 more than he earned at WTW SE, and “well above the market value, for the purpose of using it to unfairly poach WTW SE customers. and inducing other former WTW SE employees to solicit business in violation of their agreements.
Claiming that he will suffer irreparable harm if Alliant and the employees are not restricted, Willis seeks temporary and permanent injunctions against Alliant and the employees who continue to seek clients, as well as damages, including restitution of monies. won by the defendants, compensatory damages, punitive damages and attorney fees and costs.
Alliant response
Alliant asked the court to dismiss the injunctions. The California broker says Willis has failed to demonstrate that the defendants shared client information, stole trade secrets, inappropriately solicited clients or colleagues. Alliant also maintains that Willis has failed to demonstrate that it requires irreparable harm to obtain an injunction.
Alliant argues that because Willis is a giant global company with $ 9.35 billion and 46.00 employees, it will not suffer material harm if the injunctions are denied. “Losing a few producers, one (or a few) customers and a tiny percentage of Willis’s revenue will not irreparably harm such a large and diverse company,” says Alliant.
On the other hand, if the injunctions are granted, the defendant employees will be “denied the possibility of continuing the business relationships they have had for many years” with public entities and educational institutions and clients who have “made a free choice that they no longer wish to use Willis as a broker and now want to work with Alliant” will also be harmed.
Alliant claims the document Goode is accused of taking is a mailing list of public entities and employees of Willis that was used to send out a Willis newsletter and does not contain any information about customer purchases or policy details.
Alliant further asserts that Willis is not at risk of permanently losing such clients to the actions of the defendants. Alliant says Goode and Honeycutt’s book of about 30 clients at Willis was largely made up of public entities – state governments, county governments, municipalities and school boards. “The identity of these public entities and educational institutions is no secret and does not contain” extremely valuable “information, according to Alliant
Alliant claims that half of these clients cannot change insurance brokers without sending a formal request for proposal (RFP) and therefore Willis and any other interested brokerage firm can submit proposals and try to win the deal.
Alliant further disputes Willis’ injury complaints, noting that the complaint cites the loss of only one customer.
To the extent that Willis suffers harm, his remedy may consist of monetary damages, not injunctions, Alliant argues. “It is well established that the alleged damages are not irreparable if they are fully compensable by pecuniary damages,” said his response.
Alliant further claims that WTW’s employment contracts are vague and too broad and restrictive.
Alliant booklet
According to Willis, Alliant’s recent “raid” on its public entity and educational practices “was not an accident, but was in fact the operating mode and business plan.
The complaint alleges that Alliant has deployed “the same playbook” against itself and other insurance brokers in the past, resulting in the prosecution and banning of Alliant and former employees.
Less than three weeks ago, regarding the health and benefits practice of WTW SE in Knoxville, Alliant and two people were ordered by Chancellery Court for Knox County, Tennessee.
The complaint states that WTW SE and other insurance brokers have “successfully prohibited former employees and Alliant from engaging in this unlawful behavior. WTW cites similar cases against Alliant by Arthur J. Gallagher in 2020 and Lockton in 2019.