Crump Reaches ‘Standstill Agreement’ With Employee, R-T Specialty

NU Online News Service, Feb. 28, 2:38 p.m. EST

Crump Property & Casualty said it has reached a “standstill agreement” with a former employee and a competitor, Ryan Specialty Group's R-T Specialty LLC (RTS), pending the outcome of litigation.

As part of the pact, RTS and Crump’s former employee agreed not to solicit wholesale brokerage business from certain accounts for two years or until litigation is concluded, according to Crump.

Crump P&C, part of the Roseland, N.J.-based Crump Group, said its unnamed former employee left the company on Dec. 31, 2010 to go to RTS, Chicago. Crump then sued the former employee in Texas state court for breach of his non-solicitation agreement. Crump P&C has offices in Dallas and Houston.

Then Crump said it filed a temporary restraining order to block the former employee and RTS from taking Crump clients.

Crump said its former employee also agreed to not solicit Crump employees and honor his obligation to not share Crump’s confidential information.

Last year, a district court judge would not grant wholesale broker CRC Insurance Services Inc. an injunction against former employees at RTS.

CRC's request stems from the resignation of more than 120 employees on or about May 4. The brokerage then filed a lawsuit against the Ryan group and the former CRC employees, looking to enforce the confidentiality and non-solicitation agreements they signed. CRC said 39 employees also signed non-compete agreements. The injunction looked to stop them all from working for RTS, but with the ruling, the former employees now at RTS will remain employed.