Legal Battle Unfolds: Willis Towers Watson vs. Lockton in Boston
Willis Towers Watson, a global insurance brokerage and risk management firm, has taken legal action in Boston following the sudden resignation of 18 employees who moved to a rival brokerage nearby. The mass departure occurred within 44 minutes on August 19, with senior leaders Michael Scott and Thomas Grandmaison leading the group. This move was seen as a coordinated effort by Willis Towers Watson, accusing Lockton, the rival brokerage, of orchestrating a breach of non-solicitation and confidentiality agreements.
The lawsuit filed in Suffolk Superior Court alleges that Lockton aided and abetted the breach by luring the employees away. Both Willis Towers Watson and Lockton have offices in close proximity in downtown Boston, with the former headquartered in the UK and the latter in Kansas City, Missouri. Willis Towers Watson has an annual revenue of around $10 billion, while Lockton is the largest privately held independent insurance broker in the U.S. with global revenue of approximately $4.5 billion.
The departing employees, primarily based in Massachusetts, Pennsylvania, Rhode Island, and Alabama, specialized in providing insurance and risk-management services to construction companies nationwide, generating over $5 million in annual revenue for their former employer. Within 48 hours of their departure, they allegedly took 13 clients and confidential business information with them.
Willis Towers Watson is seeking a temporary restraining order and a preliminary injunction against Lockton and the former staff members to prevent further solicitations, invalidate policies written with the new Lockton employees, and enforce the disgorgement of any gains and relationships Lockton obtained. The company views the incident as severe and outrageous, requiring significant judicial intervention to address the breach of client relationships.
A hearing on the preliminary injunction request was initially scheduled for August 26 but did not take place. It appears that both parties may be seeking an out-of-court resolution, although the case remains open for now. Willis Towers Watson Northeast declined to provide further comments, and Lockton did not respond to requests for comment.