A legal row over allegations of client poaching made by a high-profile insurance brokerage against its former chief executive has ended with the executive undertaking not to take business from his old employer and to pay it €30,000.
The High Court case was filed by McGivern Flynn, a Dublin brokerage founded by businessman Hugh McGivern, against Stephen Patterson, who was chief executive until he left last year for a rival firm located north of Dublin.
Mr McGivern is a veteran of the Dublin commercial broking scene, and previously founded Trade Credit Brokers, which was later bought by listed financial services group IFG.
He was also an investor in the Monsoon retail chain alongside Celtic Tiger-era developer Paddy Kelly.
It is common in commercial broking, though often a bone of contention between firms, that senior brokers move around, sometimes taking major clients with them. Non-compete clauses in senior staff contracts are also common but are rarely invoked among insurers as the basis for legal action.
Proposed deal
Mr Patterson's contract with McGivern Flynn, drafted by top commercial lawyer Noel Smyth, included a two-year non-compete clause in the event he were to leave. When he quit last year, Mr Patterson asked Mr McGivern if they could do a deal to allow him take some clients with him.
In documents that were later submitted to the court as evidence, Mr Patterson wrote a proposal to Mr McGivern naming several prominent commercial clients he wanted to take “unchallenged”.
A text exchange between the two men submitted to the court included an exhortation from Mr Patterson to further discuss a deal.
Mr McGivern responded that he planned to stick to the contract he had with Mr Patterson, who expressed disappointment that his “compromise proposal” was rejected.
After it later began to suspect that it was losing business to Mr Patterson, McGivern Flynn, represented by Mr Smyth, went to the High Court earlier this month seeking an injunction on the back of the non-compete clause.
The case was settled less than three weeks later, after the judge urged both sides to agree a deal.
The terms included undertakings by Mr Patterson not to disclose to his new employer any confidential client information acquired while he worked at McGivern Flynn.
He also gave an undertaking to abide by the non-compete clause for a period of one year from last September, and to return to McGivern Flynn any documents and files that contain confidential information about its business.
Mr Patterson and McGivern Flynn declined to comment on Monday.
