For the second time in a span of a month, broking giant Marsh has launched a lawsuit alleging employee and client poaching, this time against another notable firm.
Marsh USA LLC has filed a lawsuit in New York against its outgoing aviation and space practice leader, Garrett Hanrahan (pictured above), accusing him of orchestrating a scheme with executives from Willis Towers Watson (WTW) to recruit a large portion of Marsh’s aviation brokers and clients.
According to the complaint, Marsh alleges that Hanrahan conspired with John Rooley, CEO of WTW's global aviation and space unit, to target and recruit the core members of Marsh’s aviation and space teams in the United States, Canada, and the United Kingdom.
The goal, Marsh claims, was for the employees to move to WTW and bring their clients with them.
Last month, Marsh also launched a lawsuit accusing Aon Risk Services Companies of orchestrating the mass departure of key personnel from its construction surety practice, including senior leadership.
The WTW suit claims that Hanrahan, who previously served as CEO of the Americas for WTW’s Global Aerospace Practice from 2008 to 2013, violated contractual obligations that prohibited him from soliciting Marsh employees and clients or using confidential information.
Marsh alleges Hanrahan shared compensation details about its employees to help WTW formulate more competitive offers.
The lawsuit also contends that WTW agreed to indemnify Hanrahan for any breaches of his employment agreement related to the alleged plan, and also committed to indemnifying other Marsh employees who were subject to similar restrictions.
The plan allegedly began to unfold in April, when Hanrahan submitted his resignation, effective May 12. Since then, five more employees have resigned to join WTW, and the complaint states more than a dozen others have been approached.
According to Marsh, some of the employees who left have already indicated they intend to solicit clients from their former employer. The company said it is attempting to retain the remaining staff but alleged that Rooley expressed WTW’s intent to continue its recruitment efforts.
Marsh is seeking a temporary restraining order and a permanent injunction to prevent Hanrahan and other former employees from violating their contracts. The company is also asking the court to bar WTW from soliciting additional personnel from its aviation and space practice and is pursuing monetary damages to be determined during the trial.
What are your thoughts on this story? Please feel free to share your comments below.