AssuredPartners scores win in poaching dispute

A federal district court judge Wednesday agreed to make permanent a temporary injunction issued in poaching litigation filed by AssuredPartners Inc. against a competitor and five departed employees.

Judge Robert C. Jones of U.S. District Court in Reno had issued a temporary injunction in AssuredPartners of Nevada LLC vs. L/P Insurance Services LLC et al. in October.

The litigation has been settled for an undisclosed amount, according to court papers. 

The injunction issued Wednesday permanently enjoins Reno, Nevada-based L/P Insurance Services and the five departed employees from disclosing any of AssuredPartners’ confidential information, using it for any purpose, contacting an agreed upon list of restricted clients and covers the period through Sept. 30, 2023. Exceptions include cases where the brokers have mutual clients.

In its request seeking the permanent injunction, AssuredPartners said under a plan with the code name “Project Forest Fire,” an L/P Insurance Services official had set a goal of hiring “most, if not all” of AssuredPartners’ Reno employees.

The five former AssuredPartners employees accounted for 75% of its Reno sales force and they “managed and influenced” about 80% of its revenue, court papers say.

After their departure, 27 AssuredPartners clients moved to L/P Insurance Services in seven days and the “irreparable harm” they caused only stopped when the temporary restraining order was issued, court papers say.

An AssuredPartners spokesperson said the company was “extremely pleased” with the permanent injunction. The statement said the settlement was for a seven-figure amount.

L/P Insurance Services attorneys did not respond to requests for comment.