USI Insurance Services LLC is suing a former employee, accusing him of urging his clients and employees to move to a competitor he controlled while still working for the brokerage.
Kenneth Dixon Wright was a co-owner of an insurance brokerage that USI’s predecessor, Wells Fargo Insurance Services USA Inc., bought for more than $1 million, according to the lawsuit filed March 9 in US District Court in San Francisco. USI Insurance Services LLC vs. Kenneth Dixon Wright; Surety Resource Connection Inc., dba Digital Insurance Services.
According to a purchase agreement that Mr. Wright and Wells Fargo/USI were included, Mr. Wright the sales proceeds and in return promised not to compete with USI, including not to solicit its customers or employees during his employment with USI and for two years after its termination.
The lawsuit states that USI found out around January that Mr. Wright, who was still working at the brokerage, broke his promises by trying to get USI̵7;s clients and employees to move to Petaluma, Calif.-based SRC.
“Despite USI’s repeated warnings that he was in breach of his contractual obligations, Wright refused to stop engaging in such efforts to compete with USI and admitted that he actively worked to transfer USI’s customers, revenues and employees to SRC,” it says that in the complaint.
It said he resigned from USI on March 3 but has continued to solicit USI clients, in violation of his contractual obligations.
The complaint charges him with breach of contract, fiduciary duty, and fiduciary duty, and all defendants with intentional interference with potential economic benefits,
USI and SRC did not respond to requests for comment.
USI recently filed poaching suits against Alliant Insurance Services Inc. in Arizona and California federal district courts.