Broking giant alleges ex-staff member ‘breached his contract’ and tried to take business
Giles Insurance Brokers has agreed a settlement with a former employee whom it claims attempted to take business from the company at the time of his departure.
The broking giant has also reiterated its tough approach to dealing with former staff who break their restrictive covenants.
A writ filed at the High Court on 5 June by Glasgow-based Giles and the consolidator’s holding company, DMWSL 585 Ltd, claimed that Adam Scott breached his contract “in relation to covenants set out in a trust and confidence agreement dated 5 August 2005 and a shareholders’ agreement dated 3 March 2008”.
Giles also made a further claim for breach of confidence.It is unclear when Scott, from south London, left Giles or where he is now employed.
In the writ, Giles claimed damages in excess of £15,000 and not exceeding £150,000. The full cost of the settlement has not been disclosed, however.
In a statement, a Giles spokesman said: “Giles can confirm that, following the instigation of court proceedings against Adam Scott for breach of contract on departure from the company, a settlement order has been agreed with immediate effect.”
It continued: “Giles always takes a robust and appropriate approach to any contractual issues and will make use of the legal system where former staff breach their contractual obligations.
“It is standard within contracts that when staff leave the business they are unable to contact existing clients for an agreed period.
“In the case of Adam Scott, other than a very small number of clients, he is now unable to contact clients for the full term of the restrictive covenant which he signed when joining Giles.” Scott could not be reached for comment.
The settlement comes just months after Insurance Times reported a backlash against consolidators by staff who walked away from independent brokers when they were acquired.
Giles has been on an acquisition spree since being acquired by Charterhouse Capital Partners in March last year – it has completed more than 20 as it seeks to smash the £1bn gross written premium barrier.