Departing employee violated work agreement, USI charges

USI Insurance Services LLC is suing an employee whose resignation becomes effective later this month for allegedly violating her employment agreement, charging she plans to join Arthur J. Gallagher & Co. and has already lured away a major client.

USI filed suit against broker Amanda Terry in U.S. District Court in Providence, Rhode Island, on June 2, stating the eight-year employee had resigned from USI in April, effective June 27, and that it had learned that one of its largest Rhode Island-based clients would be transferring its business to another broker. The lawsuit is USI Insurance Services LLC v. Amanda Terry.

In a follow-up filing with the court on Monday that seeks expedited discovery, USI identified Gallagher as the broker that she planned to join. It said the client, Johnston, Rhode Island-based JR Vinagro, a construction company, was transferring its business to Gallagher, with Ms. Terry remaining as its broker.

USI is charging Ms. Terry with violating her employment agreement, which prohibits her from soliciting business from competitors, and with breach of duty of loyalty. Its lawsuit seeks injunctive relief and punitive damages.

Spokesmen for USI and Gallagher had no comment. Court papers do not identify an attorney for Ms. Terry.