Florida-based brokerage moves USI broker poaching suit to federal court

A broker poaching lawsuit lodged by USI Insurance Services LLC should proceed in federal court in Pittsburgh because damages sought are at least $100,000, Longwood, Florida-based Insurance Office of America Inc. said Tuesday.

IOA also said in its notice of removal that the case, USI Insurance Services LLC v. Rachel Pagone et al., belongs in federal court because the parties are from different states.

Valhalla, New York-based USI sued Ms. Pagone and IOA in Pennsylvania state court in September, saying she breached her nonsolicitation agreement by doing business with two clients since resigning from USI in April. During her nearly two-year tenure at USI, Ms. Pagone signed a nonsolicitation agreement prohibiting her from contacting USI’s active clients for two years after her departure, court records show.

According to USI, Ms. Pagone contacted two of its clients, William H. Molyneaux Tile Co. and SAE International, and convinced them to do business with IOA. The departure of those clients will result in losses of at least $50,000, USI said.

USI said IOA intentionally interfered in its contractual relationship with Ms. Pagone.

Representatives from IOA and Ms. Pagone did not respond to requests for comment. A spokesperson from USI declined to comment.