Lockton unit takes former broker’s nonsolicitation fight to federal court

A Lockton Cos. LLC unit said a former broker’s lawsuit accusing it of violating California law when attempting to enforce restrictive covenants should proceed in federal court in Los Angeles.

The brokerage said in the June 7 filing in Mark Pastorius v. Lockton Cos. LLC-Pacific Series that the agreements signed by the former employee are governed by the Employment Retirement Income Security Act of 1974 rather than state law.

Mr. Pastorius sued Pacific Series in California state court May 8, alleging that the brokerage terminated his employment two days earlier for speaking with a competitor about a potential job opportunity. He has since started working for Irvine, California-based Alliant Insurance Services Inc.

During his employment at Lockton, he signed five agreements between 2008 and 2018 containing nonsolicitation provisions that barred him from sharing confidential information and speaking with clients for two years after he left the broker.

Mr. Pastorius said Lockton routinely puts Missouri choice-of-law provisions in its restrictive covenants that violate California law. Also, the nonsoliciation and noncompete agreements are void under California’s unfair competition law as well as its regulation banning such agreements, he said.

Lockton said in its filing that the agreements signed by Mr. Pastorius are governed by ERISA and that the federal statute preempts California’s law.

Representatives for the parties did not respond to requests for comment.