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Broker wants former employer’s poaching suit tossed

Posted On: Apr. 17, 2024 8:33 AM CST

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A Florida-based insurance broker on Monday moved to dismiss a suit accusing him of continuing to do business with at least three former clients after he left to join a competing brokerage.

Robert T. Picht said in his motion to dismiss that RSC Insurance Brokerage Inc., which does business as Risk Strategies Co., cannot show that it is seeking $75,000 in damages and therefore cannot litigate the case in federal court in Tampa.

Lawsuits can only proceed in federal court if the parties are from different states and damages exceed $75,000.

Boston-based RSC said in an amended complaint filed April 1 that Mr. Picht, who left the brokerage in April 2023 and joined competitor Rowley Insurance Agency Inc., breached nonsolicitation agreements when he solicited at least three clients: Aures Technologies Inc., Screen Creations Ltd. and Retail Technology Inc., court records show.

Mr. Picht contends he did not violate the nonsolicitation agreement and that any alleged damages sought by RSC could only be 80% of the commissions he made from doing business with the three accounts, or roughly $35,216.

Mr. Picht also argues that RSC’s claims for unfair competition, unjust enrichment and tortious interference with a business relationship fail because they are intertwined with its breach of contract claim.

Mr. Picht was an employee of Stephens & Associates Inc. when it was purchased by RSC in January 2022. As part of the acquisition, Mr. Picht entered into a book purchase agreement that sold to SAI any rights to 20 accounts he serviced.

Representatives for the parties did not respond to requests for comment.