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Former Axion President's noncompete clause not enforceable



A lawyer in Illinois has confirmed a lower court in favor of a former broker formerly a Hub International Ltd. official who was required to violate his non-competition agreement.

Downers Grove, Illinois-based Axion RMS Ltd. had brought an action against his former president Michael Booth, who is now Hub International's president of employment benefits and sales manager of the Hub International-Midwest.

The basis of the court by the Chicago-based Appellate Court of Illinois is that the non-competition agreement signed by Booth was innocent because he had earned less than two years after signing the agreement.

Mr. Booth was employed by Axion as vice president of sales in 201

0 and was promoted to President 2014, according to Friday's ruling in Axion RMS Ltd. against Michael Booth.

In January 2015, Mr Booth signed an employment contract that contained a noncompete clause in which he agreed not to apply for Axion's customers or employees for two years after termination.

Mr. Booth resigned with Axion and began working for Hub International in December 2015 and was alleged to have started applying for Axion's existing customers and employees, according to judgment.

Axion brought an action against Mr. Booth on charges including breach of contract based on his alleged violations of the noncompete clause. Mr Booth moved to reject the complaint on the basis that the only compensation given to an employee in exchange for not having entered into an agreement is continued employment, the employee must work at least two years for the agreement to be enforceable.

Axion argued that the court would not apply a "light line test" for two years of employment, but should apply a "totality test" instead.

The state service ruled in Booth's service, which was unanimously upheld by three judge's appeal court. It is "well established by this court that a pledge of continued employment for an employee of will is sufficient consideration to make a restrictive treaty enforceable, as long as there is at least two years of continued employment after the implementation of the restrictive union," .

"In summary, Axion pointed out in his verified complaint that Booth's only consideration was his continued employment and that he resigned less than two years later. This is insufficiently contemplated by current case law. complaint that there are no possible sets of documents that would make the non-competing clause in the employment contract enforceable.

"Thus, the court failed to reject Axion's confirmed complaint," said the court, who also held that they did not abuse their discretion when refusing Axion to submit a proposal for a modified complaint.

Neither Mr Booth nor an Axion official could be immediately reached for comment. 19659002] Disputes filed in several courts by Lockton Cos. LLC claimed rival brokers Alliant Insurance Services Inc. poached more than two dozen staffs reflecting a market where talent is scarce, observers say.

                    


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