Three former Marsh & McLennan Companies executives involved in the startup of a London-based unit for Integro Ltd. brokerage cannot be sued in the United States, according to a U.K. Court of Appeal decree.
New York-based MMC, which encompasses Marsh Inc. brokerage and reinsurer Guy Carpenter Inc., sued the three executives after they left the Guy Carpenter London office to form an international insurance and reinsurance unit for Integro Ltd. Integro has a New York headquarters.
"A multinational business must expect to be subject to the employment laws applicable to those they employ in different jurisdictions," wrote Lord Justice Sir Simon Tuckey in his ruling.
In April, Julian Samengo-Turner, Ron Whyte and Marcus Hopkins left the Guy Carpenter London office to set up the new operation for Integro.
Marsh accused the three of violating nonsolicitation provisions.
The company claimed New York jurisdiction because the defendants' bonus plan was located there.
Kate Payne, London-based attorney for the defendants, said in a statement that "the case has important ramifications for big international insurance broking groups and financial institutions based in the U.S. with London operations."
MMC is not the only large U.S.-based brokerage to sue Integro in the wake of staff defections. Last year, Chicago-based Aon Group filed suit in Superior Court of Fulton County, Ga., claiming that New York-based Integro violated employment agreements by recruiting both the firm's personnel and business.
The suit accused Integro of pursuing an "ambitious and aggressive campaign to pirate employees from Aon Group." It was settled for undisclosed terms on April 10, 2006.
Integro opened its doors in 2005 under the leadership of Bob Clement, the founder of Arch Capital, based in Bermuda, and two former Marsh chief executives, Roger Egan and Peter Garvey.
This article updated 2:39 p.m.
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