Client Poaching Claim Fails

A £6 million claim against former employees accused of ‘poaching’ clients for the firm they joined after their former employer was taken over has been lost in the High Court.

Seven insurance brokers were sued for breaching their contracts, which prohibited the targeting of clients if they left the firm. It was alleged that their new employer had conspired with them to acquire clients of their former employer.

The Court found, however, that there was insufficient evidence that the clients had been deliberately targeted. It accepted the explanation that they had moved because they preferred to maintain a relationship with their trusted adviser and were dissatisfied with the service levels provided by the firm after the brokers had left.

Making a claim of ‘customer poaching’ against a former employee stick can be very difficult and it is essential to have a carefully drafted contract of employment in order to have a good chance of succeeding.

Contact DFA Law employment specialist Gary Lee for advice on any aspect of employment law.