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B.G. Balmer & Co. Inc. v. Frank Crystal & Co.

Articles Discussing Case:

A Costly Change: Violation Of a Non-Solicitation Clause Results In a Multi-Million Dollar Award

Fisher Phillips • July 16, 2013
A recent ruling entered in Pennsylvania state court is a stark reminder to employers and employees about the dangers associated with violating post-employment restrictive covenants such as non-compete and non-solicitation provisions. The case, captioned as B.G. Balmer & Co. Inc. v. Frank Crystal & Co., centered around the question of whether a group of insurance brokers violated the non-solicitation clause in their employment agreements with Balmer. The group of departing employees first began to consider switching insurance brokers from Balmer to Crystal when they individually met with a recruiter in May 2003. Only a few months later, in July 2003, the group of employees all resigned from Balmer on the same day in order to start working for Crystal. Subsequent to their collective departure, approximately twenty clients switched insurance brokers from Balmer to Crystal.