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USI, former employee exchange accusations

Posted On: Jan. 5, 2023 10:22 AM CST


USI Insurance Services LLC and a former brokerage official who left the company to join a rival have filed accusations against each other in federal court.

Todd Morris was a senior vice president at CB Insurance LLC, which was acquired by USI in January 2021, according to USI’s complaint filed in U.S. District Court in Denver in USI Insurance Services LLC v. Todd Morris.

The complaint charges that Mr. Morris, in violation of the nonsolicitation and confidential information and trade secrets agreement he signed, obtained confidential information with the help of another former CB employee, then “abruptly and unexpectedly” announced he was resigning. He and the fellow employee joined competitor Denver-based Moody Insurance Agency. 

The complaint charges Mr. Morris with breach of contract, trade secret misappropriation and civil theft and seeks injunctive relief.

Mr. Morris denied the charges in a filing with the court on Tuesday. He said he did not disclose confidential information and characterized the agreement he signed as a “take it or leave it” contract.

Mr. Morris asked the court to dismiss USI complaint and declare the agreement void. He also seeks penalties and damages.

Earlier this week, a Minnesota state court ruled in USI’s favor in poaching litigation it filed against Alliant Insurance Services Inc. and a former USI employee who left to join Alliant.