A New York State appeals court ruled that a preliminary injunction against a former Aon employee accused of poaching clients can remain in place as the case proceeds.

In a Jan. 10 ruling, the New York Supreme Court, Appellate Division, first Department issued a ruling keeping a Sept. 21, 2012 order in place granting insurance-broker Aon a preliminary injunction against Peter Arkley and other former Aon employees.

The court ruled that Aon has standing to bring its allegations in the New York court and says Arkley's purpose to seek dismissal is “to avoid his contractual obligations.” The court also says that Arkley's actions demonstrate that when “not subject to formal judicial restraint, [he] has been inclined to solicit Aon's employees and customers, in addition to making apparent use of its proprietary and confidential information.”

The case stems from when Arkley left Aon in June of 2011 and went to work for Alliant. In the subsequent days after his departure, 40 employees left Aon's Construction Services Group, allegedly gutting the operation, taking clients and costing Aon $15 million in revenue.

A suit in California, where Alliant is based and Arkley lives, was dismissed by a federal court in June. The judge in that case says that California law offers protections that Illinois law does not. Aon was based in Chicago prior to moving its corporate office to London last year and filed its claim under Illinois law.

However, the New York courts say the broker has standing in their state because it does substantial business there and Arkley freely accepted the contractual terms of a restrictive covenant in return for economic incentives.

The court went on to say that in the California ruling, the court “ignored the parties' choice of law provisions in favor of its own public policy.” The defendant has also not offered the court satisfactory argument why Illinois law should not be enforced by the New York courts.

In a statement, Aon says, “We are very pleased with the Alliant ruling.”

Special Reports /

New York Court Keeps Aon Poaching Suit Alive

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