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New York Court Upholds Non-Compete Agreement in Cross-Country Dispute

Posted on Jan 01, 2016

Two insurance companies are at arms regarding employees violating their non-compete clauses. An insurance broker company named Aon has filed an injunction against Alliant Insurance Services, Inc., saying that the Newport Beach, California-based company was poaching employees and business. Aon is alleging that these actions have led to serious losses for its Construction Services Group.

The New York Supreme Court awarded a preliminary injunction win for Aon, which forbids former Aon employee Michael Cusack and his new employer Alliant from entering into any business with clients or companies that had been contacts of Alliant employees when they were working with Aon. The injunction also forbids Alliant from soliciting employees of Aon’s Construction Services Group to move to their company.

Former CEO of Aon Construction Services Group left the company the same day as Cusack to move to Alliant; fifteen clients and thirty-eight other employees also made the move.

New York Supreme Court Justice Bernard J. Fried found that many former Aon employees were in violation of their non-compete agreements when they went to Alliant, which had recently begun negotiations with the Construction Services Group of Aon. But Judge Fried stated that it is not evident that Cusack and others took company secrets, about the negotiations or otherwise, of Aon to Alliant.

Aon will likely succeed in showing that Cusack and others were in violation of their agreements after leaving Aon, according to Justice Fried. He also stated that there are other unspecified, but related, standards of employment that Cusack and others have violated for which they will be held accountable.

The violation, or stronghold, of a non-compete agreement can be detrimental to your career. To learn more about your rights under a non-compete agreement, contact a New York non-compete agreement attorney today.

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