Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, Farmers New World Life Insurance Company v. Steele Insurance Agency Inc., Troy Steele, Ted Blalock, Larry McCarren, Bill Henton, Cindy Jo Perkins, and Does 1 through 50, inclusive
Published: Dec. 17, 2016 | Result Date: Mar. 23, 2016 | Filing Date: Jan. 1, 1900 |Case number: 2:13-cv-00784-MCE-DAD Bench Decision – Permanent Injunction
Court
USDC Eastern
Attorneys
Plaintiff
Michael A.S. Newman
(Hinshaw & Culbertson LLP)
Royal F. Oakes
(Hinshaw & Culbertson LLP)
James C. Castle
(Hinshaw & Culbertson LLP)
Defendant
William B. Hanley
(William B. Hanley Attorney at Law)
Facts
Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Co., and Farmers New World Life Insurance Co. sued Steele Insurance Agency Inc., Troy Steele, Ted Blalock, Larry McCarren, Bill Henton, and Cindy Perkins,
Contentions
PLAINTIFFS' CONTENTIONS:
Defendants were employed by Farmers, as either district managers or agents, but were eventually terminated. Defendant Steele then formed his own business directly competing with Farmers' insurance business. Using the knowledge they gained form working with Farmers, defendants allegedly solicited Farmers' policyholder information from Farmers' computer database, soliciting Farmers' workers to work for Steele Insurance, and by other means. Farmers asserted causes of action for breach of contract, misappropriation of trade secrets, violation of the Computer Fraud Act, 18 U.S.C. Section 1030(a)(2)(C), violation of Section 1030(a)(4), and civil conspiracy.
DEFENDANTS' CONTENTIONS:
Defendants denied the allegations and asserted various affirmative defenses.
Result
The parties entered into a stipulated judgment, whereby defendants agreed to a permanent injunction. Among other things, defendants were required to immediately cease using confidential trade secret information relating to Farmers' policyholders and return any materials still in defendants' possession. Defendants were also required to comply with reporting requirements. Additionally, defendants must pay $2,500 for any violation of this permanent injunction and other relief.
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