Alliant Insurance Services Receives Favorable California Rulings in Aon Litigation

Court Finds Aon’s Non-Compete Covenants Violate State Law

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Alliant Insurance Services, the nation’s largest specialty insurance brokerage firm, today announced that it recently received several favorable rulings from a U.S. District Court in California in its litigation against Aon Corporation and its subsidiaries.

In June 2011, Alliant joined with former Aon employees Peter Arkley, Ken Caldwell and Michael Parizino in a lawsuit challenging the enforceability of restrictive covenants, which Aon included in its employment agreements with these California residents, who are now members of Alliant’s Construction Services Group.

In a June 13, 2012 order, U.S. District Court Judge Dale Fischer struck down the non-compete provisions in Aon’s employment agreements and in various equity plans between the company and each of these former employees. The Court found these covenants not to compete void and unenforceable under California law. The Court further found that Aon’s use of these restrictive covenants constituted an unfair business practice under California’s unfair competition law.

“These important rulings reject Aon’s attempt to use illegal employee covenants to restrict Alliant’s brokers from working with their clients,” said Jeffrey S. Klein, Chair of the Employment Litigation practice at Weil, Gotshal & Manges LLP and lead counsel for Alliant in the multi-jurisdictional disputes between the parties. “From the beginning of this dispute, Aon has sought to stifle fair competition in the marketplace. Alliant will continue to vigorously defend its right to compete.”

Alliant has built one of the most talented teams of construction insurance and surety professionals in the country. Alliant Construction Services Group, the industry’s first new construction services organization in nearly 20 years, is redefining the space by providing clients trusted risk advice, premier customer service and innovation – The New Option.

About Alliant Insurance Services:

Headquartered in Newport Beach, Calif., Alliant Insurance Services, Inc. is one of the largest insurance brokerage firms in the United States and has a history dating back to 1925. Alliant provides property and casualty, workers' compensation, employee benefits, surety, and financial products and services to some 20,000 clients nationwide, including public entities, tribal nations, healthcare, energy, law firms, real estate, construction, and other industry groups. More information is available on the company's web site at: www.alliantinsurance.com.

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Source: Alliant Insurance Services