Gallagher sues broker and ex-employee

Arthur J Gallagher is suing ex-employee Graham Hudson and Scottish broker George Stubbs over allegations of attempted client poaching.

Insurance Times understands the case which is being heard in the Scottish courts relates to alleged activities of client dealing and solicitation during Hudson’s restricted period following his departure from Gallagher.

The Top 50 broker alleges that George Stubbs induced Hudson to breach his contractual obligations - which he was bound by for 12 months following his departure.

A spokesperson for Gallagher toldInsurance Times: “Gallagher is pursuing legal proceedings against Graham Hudson, a former broker within its Aberdeen branch, and his new employer, independent insurance broker GS Group, for breach of covenants.

“We will continue to respond robustly, to protect our business and seek redress, where we reasonably believe individuals have not honoured their contractual commitments to Gallagher and have acted in breach of their legal obligations.”

Last month, lawyers for George Stubbs tried to lodge an application to get Gallagher’s case against George Stubbs dismissed after claiming the allegations were “irrelevant and lacking in specification”

But the judge Sheriff Philip Mann from the Sheriffdom of Grampian Highland and Islands rejected the motion by George Stubbs saying: “In this case, [George Stubbs] do no more than maintain that the pursuers’ pleadings are irrelevant and lacking in specification.

“They do not point to anything in the pleadings that calls for the kind of explanation sought… nor do they produce any extraneous material.”

George Stubbs also sought leave to appeal the decision on 7 February but permission to appeal was refused by the judge.

A procedural hearing is taking place on Friday where directions could be made on the next steps of the case.

A number of things could be decided on Friday; such as whether the Sheriff should list a date for a further hearing or whether parties should be given more time to adjust their pleadings.

Hudson was previously a branch director in Gallagher’s Aberdeen office.

He joined George Stubbs in November 2014 to lead development in Aberdeen and the North East of Scotland.

George Stubbs has said it will not comment while proceedings are ongoing.

Hudson was unavailable for comment.