Executive Forbidden to Contact Clients in Non-Compete Lawsuit
Posted on Jan 01, 2016
The Supreme Court of the State of New York recently issued an injunction in the continuing non-compete agreement battle between corporate entities Aon Construction Services Group and Alliant Insurance Services. The lawsuit involves accusations by Aon that several of its former executives, who are now employees of Alliant, collaborated with their new employer in attempts to convince other Aon employees and Aon clients to leave Aon for Alliant. The lawsuit was filed in 2011.
As a result of this recent injunction, a former CEO at Aon, Peter Arkley, cannot solicit or do business with Aon clients he produced or whose accounts he worked on during the two-year period before June 13, 2011. In addition, he is restricted from soliciting any Aon Construction Services Group employees to work for Alliant. The injunction does not apply, however, to clients who moved their business to Alliant prior to the issuance of the injunction.
As the battle in New York wears on, the two parties are also fighting in California courts. Alliant, Peter Arkley, and former Aon executives Ken Caldwell and Michael Parizino allege that Aon’s restrictive non-compete covenants are not enforceable. In June, the U.S. District Court for the Central District of California sided with Alliant and the executives with regard to the enforceability of the non-compete covenants contained in the executives’ employment agreements with Aon. The court further ruled that use of the covenants constituted an unfair business practice.
To learn more about this non-compete case and other business litigation matters, contact a New York non-compete attorney today at (888) 497-3410 for a consultation.