Gallagher vs Ardonagh day two: Defence argues 'hostility' to broker made Alesco exit 'inevitable'

Hostility towards top insurance broker Nawaf Hasan made his resignation from Alesco Risk Management “inevitable”, the High Court was told today.

The 2017 departure of Hasan and three senior colleagues from Alesco has sparked an epic legal battle over staff poaching in the insurance industry.

Alesco and two other members of the Arthur J Gallagher Group say they were victims of a conspiracy to strip away key personnel and harm their business.

Being sued are bitter Gallagher rivals, the Ardonagh Group, two of its subsidiaries, Hasan and fellow insurance broker, Peter Burton.

They unanimously deny any wrongdoing and have accused Gallagher of treating any dissatisfied employee who leaves for a competitor as an enemy.

“Hostility”

In his opening statement to the court, Richard Leiper QC, for Hasan, said he had been far from happy when working for Alesco.

The barrister claimed that messages exchanged at high level within Alesco revealed “hostility” towards him on grounds of his religion and race.

Leiper told the court: “The claimants make a number of wide ranging and serious allegations against Mr Hasan. They do so with a view to claiming millions of pounds by way of compensation following Mr Hasan’s lawful decision to resign… and to commence employment with (Ardonagh subsidiary) Price Forbes.”

But the barrister claimed that Hasan had been treated with no respect by senior management, was only “tolerated because of the income he generated” and had legitimate concerns about his treatment which more than justified his departure.

And he rejected as “fanciful” Gallagher’s arguments that, but for his recruitment by Ardonagh, Hasan would have been promoted and stayed on for five years.

“Mr Hasan’s resignation was inevitable, given his dissatisfaction with his ongoing employment,” the QC told Mr Justice Freedman.

“Prior to his resignation, he had been involved in discussions with a number of potential new employers with a view to leaving Gallagher.

“It is clear that Mr Hasan was respected by Alesco’s senior management for nothing other than the income he generated.”

Speculation

After his resignation, Alesco chief executive Simon Matson had stated that he “would like to lose all of Mr Hasan but the money,” Leiper claimed.

The allegation that Hasan had engaged in an unlawful conspiracy with Burton to take a team of key Alesco employees to Ardonagh was “based almost exclusively upon inference and speculation,” he added.

Far from plotting against Gallagher with Burton, Hasan’s evidence was that he “never really liked” Burton and that he “generally found him to be pretty unfriendly towards me.”

Leiper said: “In any event, Mr Hasan and the others said to form part of the unlawful team move were not a ‘team’.

“They were all members of the Alesco energy division, but that comprised over 80 employees. They worked in various different parts of that division.”

Gallagher’s accusations against Hasan were, he added, “wholly misplaced and unsupported by, and indeed contradicted by, the evidence.”

The truth, the court heard, was that Hasan was dissatisfied because promises of promotion that were made to him on recruitment had not been met.

Frustrations

His “frustrations grew” as difficulties in his relationship with Matson went from bad to worse, the court was told.

Matson’s approach to discussions about Hasan’s bonus “further demonstrated to Mr Hasan the lack of respect Mr Matson had for him.”

He was actively looking to leave Alesco, and Price Forbes was far from the only broker who sought to recruit him, said Leiper.

“It is plain from the way in which Mr Matson, in particular, but also other members of senior management, referred to Mr Hasan following his resignation, that Mr Hasan was tolerated only because of the income he generated.

“This is entirely consistent with the impression Mr Hassan developed during his employment. It is directly contrary to Gallagher’s case that Mr Hasan was a respected employee and that, were it not for his allegedly unlawful recruitment by the corporate defendants, he would have been promoted up the management ladder and remained in its employment for at least five years”.

Concerned

“Unguarded exchanges” between members of Alesco’s senior management revealed “a hostility towards Mr Hasan based on his race/religion and an environment in which such comments went unchecked,” Leiper alleged.

“Mr Hasan was right to feel that he was tolerated and no more than that and that Mr Matson and others did not respect him other, presumably, for his ability to generate money.”

Hasan was genuinely concerned about his treatment and “had no faith that any changes would be implemented in a manner that addressed his significant concerns.”

The High Court hearing, which is expected to last up to three weeks, continues.