MassMutual Sues Ex-Agency Manager Over MetLife Defection

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May 19, 2010 Wednesday

387 words

MassMutual sues ex-agency manager over MetLife defection

Tim Zawacki

The former general manager of MassMutual's Georgia agency has allegedly attempted to recruit certain colleagues to join him in his new role at MetLife.

Circumstances surrounding the May 12 resignation of a Massachusetts Mutual Life Insurance Co. agency general manager have led to litigation.

William "Bub" Brill served as general manager of MassMutual's Georgia agency since January 2007. He submitted a notice of termination to the company May 12, allegedly to join a new agency at MetLife Inc. unit Metropolitan Life Insurance Co. But MassMutual's breach-of-contract lawsuit against Brill alleges that he did not leave quietly.

The suit alleges that Brill openly recruited MassMutual employees to join him at MetLife. In one instance, he allegedly had lunch with a career agent at which point he asked why she would want to work for a mutual insurer as opposed to a stock company.

"Before leaving his office on Wednesday May 12, 2010, defendant was seen openly talking to many MassMutual sales representatives and was overheard saying that he 'had a lot of job openings at his new firm,' and instructing that 'his partner would be calling them,'" the complaint states. Such recruitment efforts, MassMutual argues, came in direct violation of Brill's general manager agreement with the company.

According to his LinkedIn profile, Brill now serves as managing director at MetLife and MetLife Securities Inc. According to the profile, "Our firm of 100+ advisors/staff works with businesses and individuals offering the full spectrum of financial products throughout the state of Georgia." Prior to joining MassMutual in 2004, Brill worked at New York Life Insurance Co. and what is now known as Prudential Financial Inc.

MassMutual said it faces the prospect of the imminent loss of clients that would result in damages that are "easily" in the hundreds of thousands of dollars. MetLife ranked as Georgia's largest writer of life insurance premiums and annuity considerations on a combined basis in 2009, according to SNL data, with market share of 8.9%. MassMutual ranked 15th, with share of 2.1%.

In addition to breach of contract, MassMutual charged Brill with breach of the implied covenant of good faith and fair dealing as well as tortuous interference with contractual relationships. The insurer is seeking an order restraining Brill from inducing any MassMutual employees or policyholders to leave the company. The matter is pending in the U.S. District Court in Massachusetts.

May 25, 2010