Agent Arrested For Violating Non-Compete

[Crabcake Johnny]

We've had a lot of discussions on non-competes and the ramifications of contacting clients if you don't own the book.

Insurance Agent Arrested Because He Won't Stop Selling Insurance

"After working as an independent contractor for McCashland-Kirby for a while, Hall terminated his contract with them and opened his own company called AIM Insurance, which used the same logo, website, and email address as the company he sold to McCashland-Kirby. He also began contacting the nearly 800 customers that came with the sale of his previous company to McCashland-Kirby, prompting the company to sue him in 2009.

A judge issued an injunction against Hall to prevent him from contacting his old clients and from using a company name similar to Associated Insuance Managers or AIM (Hall he has since changed the name of his company to Capitol City Insurance). In November 2010 the judge found Hall in contempt of court for violating the injunction and selling policies to his former customers, and it appears as if he's violated it again more recently."

 

[djs]

I wonder how long the non-compete was for????
Of course, if I'm reading this correctly, he sold his company (and the clients) and then went after the clients he just sold.

Probably not a good idea.

Dan

 

[Crabcake Johnny]

Article says it - four years.

 

[DHK]

"The devil is in the details"

Sure is. Let's take a look:

"violated a judge's orders"

A judge issued an injunction against Hall to prevent him from contacting his old clients and from using a company name similar to Associated Insuance Managers or AIM (Hall he has since changed the name of his company to Capitol City Insurance).

In November 2010 the judge found Hall in contempt of court for violating the injunction and selling policies to his former customers, and it appears as if he's violated it again more recently.

used the same logo, website, and email address as the company he sold to McCashland-Kirby

That's just undermining the sale of your previous business and downright unethical.


Let's put it this way: the guy was arrested for violating a judges order... and for the stupid way of going about selling his old customers.

Your non-compete will mean NOTHING if a judge finds you in violation of the spirit or letter of the law... and you STILL go out and violate the court orders.

 

[Mattschmidt]

You would think he would of stopped, after the Judge ordered him to quit it...what a dummy...Good lesson for others, who are thinking about violating the Non Compete cause

 

[wjw0006]

I read this as I received this via email from NOLHA.

It sounds like this guy pushed it too much. He sold the agency/book of business and then tried to write the same customers? You can't double dip like that....

 

[Crabcake Johnny]

Exactly - sold his agency then contacted all the clients. What's interesting about this is what kind of trouble you can end up in when violating a non-complete. Many agents may assume it's a civil case. But it turns criminal when a judge issues an injunction which is then violated.

 

[xrac]

You would think he would of stopped, after the Judge ordered him to quit it...what a dummy...Good lesson for others, who are thinking about violating the Non Compete cause

I would say this guy is a greedy, scumbag who deserves to be thrown in jail.

 

[wjw0006]

The key to this situation is right to work. This guy gave up his "right to work" those customers when he willingly sold his agency. Thus he cannot use the excuse that this is his job - the injunction is only in places versus the old customers he had. I do not think anyone would have an issue if it was legit new business that he was writing....

 

[bobson]

He also used the same logo, website, and e-mail, don't forget that. My guess is somehwere those are copyrighted items and he sold the copyright.