Liberty Mutual Files Suit Accusing Aspen of Plotting to Steal Its Professional Liability Business

Liberty Mutual Group Inc. has filed a lawsuit against nine former employees and their current employer, Aspen Insurance Holdings Ltd., alleging they conspired to "raid" Liberty's professional liability insurance business.

The suit, filed in the Supreme Court of New York, names Bruce Eisler, a former senior vice president in the professional liability division of Liberty Insurance Underwriters Inc.; Rob Cunningham, Justin Camara, Ross Goodman and Ross Herlands, former vice presidents of the same division of LIU; former assistant vice presidents, Judith Olivier and Susan Dufresne; and former underwriting specialists, Bryan Nogaki and Douglas Sifert.

Bermuda-based Aspen and subsidiaries are also named in the lawsuit.

"We are aware of the complaint filed against Aspen by Liberty Mutual," said Aspen in a statement. "(While) it is not our policy to comment on ongoing litigation matters, we believe that the case is without merit and will act accordingly."

Liberty Mutual said in a statement distributed by a company spokeswoman it could not comment directly on the lawsuit. The company said a recently announced restructuring of LIU's specialty casualty team in the United States ensures the unit continues to provide "expert underwriting service." Liberty started the professional liability division of LIU in 2000.

According to court documents, Liberty alleges its former employees took part in a "plot to steal" its professional liability business while they were still employed with the company and it has the e-mails to prove it. The employees all submitted letters of resignation from Jan. 14 to Jan. 20. Liberty says Eisler submitted his own letter and letters from five others on Jan. 14.

Liberty alleges Eisler was in contact with Aspen late in 2009 to "discuss the possibility of moving Liberty professional liability insurance business over to Aspen." Later, Eisler "solicited Liberty employees to come with him to Aspen."

"The en masse departure of nine key employees of LIU's professional liability insurance unit was clearly the result of Aspen's conspiracy with Eisler and/or the other individual defendants...to recruit the Liberty employees whom they supervised," the suit reads.

Liberty alleges Aspen "pilfered" infrastructure from Liberty, a competitor, by "inducing" its employees to "breach their duty of loyalty by, among other things, taking with them Liberty's confidential proprietary information and trade secrets."

Liberty Mutual is seeking injunctive relief, as well as actual and punitive damages.

Liberty Mutual Insurance Cos. and Aspen Insurance Ltd. currently each have a Best's Financial Strength Rating of A (Excellent).

(By Chad Hemenway, associate editor, BestWeek: [email protected])