Out-of-court settlement reached after six staff joined from Leeds branch

Yorkshire broker Hale Kavanagh has paid Arthur J Gallagher an undisclosed sum to settle a breach of contract claim brought against the company and several of its staff.

Legal action was started against Hale Kavanagh by Giles when its former Leeds regional managing director Paul Dempsey joined Hale Kavanagh as a business development director in February 2013 and was followed by five staff from Giles’ Leeds branch.

Giles started legal proceedings against the broker and its former employees, and the case was continued by Gallagher after its November acquisition of Giles.

Hale Kavanagh has now paid Gallagher an undisclosed sum to close the case.

The company said in a statement: “The parties are pleased to draw a line under the dispute and move on with their respective business plans.”

Rumour and speculation about the case in the local insurance market had stifled the broker’s progress, it added.

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