Marsh sues Florida execs over departure for Howden

Marsh on Tuesday sued a group of former executives in Florida, alleging that they led more than 100 employees to join British rival Howden.

Marsh alleges that the four executives, “under cover of darkness,” laid the groundwork for Howden to create a U.S. business overnight.

In Marsh USA LLC v. Michael Parrish, Giselle Lugones, Robert Lynn, and Julie Layton, filed in U.S. District Court in New York, the broker alleges the executives are continuing to inflict harm on the company as they poach a growing number of employees.

According to the suit, London-based Howden was in talks earlier this year to acquire Risk Strategies, but when the talks broke down, it decided to enter the U.S. market through recruitment. Brown & Brown announced last month that it was buying Risk Strategies.

Marsh’s suit alleges that Howden set up at least two U.S. companies and recruited Michael Parrish, Marsh’s former Florida zone leader, as CEO of its U.S. business. Ms. Lugones was Marsh’s Florida health care practice leader, Mr. Lynn was Florida sales leader and Ms. Layton was risk management segment leader.

“Parrish and his lieutenants then worked covertly over many months, all while being handsomely compensated by Marsh, to aggressively solicit Marsh’s employees to join them at Howden,” the suit alleges.

The executives resigned July 21 to start work at Howden on Aug. 1, and “a flood of coordinated resignations followed,” Marsh says in the lawsuit.

Within hours of the resignations, clients began notifying Marsh that they would be moving their business to a competitor, Marsh alleges.

“To date, at least eight major Marsh clients have moved to Howden — resulting in millions of dollars in lost revenue,” the suit says.

The executives violated provisions in their employment agreements with Marsh not to solicit employees and clients or disclose confidential information, Marsh alleges.

Howden declined to comment on the suit.