Lockton unit pushes back on USI’s bid for new ‘pie-in-the-sky’ damages trial

A Lockton Cos. LLC unit asked a federal judge in Tampa, Florida, Thursday to deny USI Insurance Services LLC’s motion for a new trial in a broker poaching dispute, saying USI is seeking “pie-in-the-sky” damages not available under Florida law.

Southeast Series of Lockton Companies LLC said in a brief filed in Matthew Simmons et al. v. USI Insurance Services LLC et al. that the trial judge correctly refused to allow USI to seek four types of damages: punitive, fair market value, lost gross profits and disgorgement prior to a trial that ended in July.

At the conclusion of that trial, the jury awarded $3 million in damages to USI after finding that former USI brokers Matthew Simmons and Jack Mitchell were liable for breach of contract and breach of fiduciary duty. The jury also found Lockton liable for aiding and abetting the brokers’ breach of fiduciary duty and tortiously interfering with contractual relationships.

USI filed a motion for a new damages-only trial in October, saying it should have been allowed to present a fair market value damages model to the jury to demonstrate the actual value of business lost from the departure of the brokers to Lockton. USI also said its claim for more than $5 million in punitive damages was wrongfully dismissed prior to trial.

A spokesperson for USI said, “We appreciate that Lockton and the departing employees want to put this matter behind them. However, USI believes — and the jury agreed — that the attempted raid by the defendants was deemed extraordinary for the brokerage industry, and USI will continue to pursue its legal remedies to the fullest extent.”

A spokesperson for Lockton said the brokerage had no comment.