Claims Adjuster Can’t Take Business and Talent
A national general adjuster left his firm to join a direct competitor, McLarens Global Claims Services. He also lured seven of his direct reports over to the new firm who brought along with them several accounts. However, the adjuster had signed a noncompete agreement with the parent company in conjunction with receipt of stock options. The agreement prevented him from soliciting clients as well as employees of the firm. The lower court entered a preliminary injunction enforcing both provisions of the noncompete and nonsolicitation agreement. The Sixth Circuit affirmed citing centuries old precedent and the hyper-competitive nature of the business.