Parties involved in the complicated case of an agent who did not deliver business to Delaware-based Lyons Insurance Group have been ordered to come up with a remedy.
According to the ruling, Howard Wilson joined insurance business specialist Lyons with the expectation of delivering his former book of business he had accumulated with USI Insurance Services. Lyons is based near Wilmington.
However, USI was able to bar Wilson from attempting to take that business for two years. USI is a national agency with 140 offices.
Wilson generated little new business during the two years at Lyons. During his time with Lyons, he was paid $205,000 a year, plus a $50,000 signing bonus.
Lyons later paid $500,000 to USI retrieve the business at the end of the two years. However, by that time Wilson decided he would have difficulty getting his old business back and joined GNG Insurance Agency, based in Bucks County, PA.
The court filing indicated that Wilson had suggested GNG to clients while waiting for the two year period to end.
Vice Chancellor Sam Glasscock III, ruled that Wilson breached his employment contract with Lyons, but dismissed against other claims filed by Lyons against GNG.
Glasscock ruled that the parties in the case should determine a remedy and set an Oct. 22 date to come up with a solution. If a remedy cannot be found, further action by the court would be required, he wrote in the memorandum opinion.
Click here for a link to the ruling.
