A federal jury in Tampa, Florida, said Thursday that Lockton Cos. LLC and two brokers should pay about $3 million in damages to USI Insurance Services LLC for breaching noncompete agreements and interfering with nonsoliciation agreements.
Following a two-week trial, the jury in USI Insurance Services LLC v. Matthew Simmons et al., concluded the former USI brokers were liable for breach of contract and breach of fiduciary duty.
The jury said USI suffered damages of $1.9 million in damages from Mr. Simmons’ actions and $152,500 from Jack Mitchell’s conduct.
The jury also said Lockton should pay $915,000 in damages for aiding and abetting the brokers’ breach of fiduciary duty, and tortiously interfering with contractual relationships.
Mr. Mitchell, Mr. Simmons and four other former USI brokers sued the Valhalla, New York-based brokerage in Florida state court in January 2023, seeking an order saying the noncompete and nonsolicitation agreements they entered into were unenforceable after the Federal Trade Commission proposed a rule banning such provisions. The former brokers said they were forced to leave USI due to insufficient resources and support, and joined Southeast Series of Lockton Cos. LLC, court records show.
USI removed the case to federal court and filed counterclaims against Lockton, Mr. Mitchell and Mr. Simmons, alleging the brokers’ departure was part of a coordinated effort “with Lockton’s aid and assistance.”
USI sought damages of more than $5 million for lost profits as well as punitive damages. The trial judge dismissed the punitive damages claim.
“While Lockton would have preferred a complete defense verdict, we are pleased that the jury only awarded USI a fraction of the damages it sought,” a Lockton spokeswoman said.
A spokesperson for USI said, “We appreciate the jury recognizing that Lockton purposely interfered with the USI employment contracts, which contain the same type of restrictions Lockton places on its own employees.”
