United States District Court, E.D. Louisiana
BREWSTER G. STALTER, II
ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, INC., ARTHUR J. GALLAGHER OF LOUISIANA, INC., AND ARTHUR J. GALLAGHER & CO., COMPANY
ANN VIAL LEMMON UNITED STATES DISTRICT JUDGE.
AND REASONS IT IS HEREBY ORDERED that Defendants' Motion
for Summary Judgment on the Defense of Prescription (Doc.
#14) is GRANTED.
FURTHER ORDERED that Defendants' Rule 12(c) Motion for
Judgment on the Pleadings, and Alternative Motion for Summary
Judgment (Doc. #15) is GRANTED.
Brewster G. Stalter, II, was employed by defendants, Arthur
J. Gallagher Risk Management Services, Inc., Arthur J.
Gallagher of Louisiana, Inc., and Arthur J. Gallagher &
Co., Company (collectively “AJG”), as an account
executive and risk management service agent from March 1,
2001, until October 1, 2007. Stalter specialized in procuring
insurance products for large accounts, including
municipalities and public entities. Stalter's
compensation was 100% commission-based.
Stalter's employment with AJG ended, he and AJG entered
into a contract whereby Stalter would receive a portion of
future commissions earned on accounts that he initiated. The
agreement provided in pertinent part:
Going forward, [A]G] agree[s] to broker accounts for
[Stalter] provided that [Stalter] meet[s] all of the
conditions required of [A]G] sub-agents. This includes (but
not limited to) retaining a valid property and casualty
insurance license and maintaining sufficient errors and
omissions coverage (currently 1 Million in coverage). [A]G]
agree[s] to the following commission splits:
• 35% on existing accounts (see attached expiration
report). Commissions to be paid on existing accounts shall
exclude all installments on the Jackson Kearney 07-08
• 50% on all new brokered accounts.
• Any payments will be made once [A]G] has received
payment on a given transaction and when all required
documentation is in [A]G's] receipt.
existing accounts listed on the expiration report are: Evans
Industries, Inc.; Excel Home Health Services; Home Medical
Resources, Inc.; Neeb-Kearney & Company, Inc.; KTCJ
Holding LLC; Orleans Levee District (policy professional
liability coverage only); Port of New Orleans; Safeguard
Storage Properties; and, Vital Health Services, Inc.
24, 2016, Stalter filed this action in the Civil District
Court for the Parish of Orleans, State of Louisiana against
AJG alleging that AJG has failed to pay commissions to
Stalter for the Loyola University of New Orleans
(“Loyola”) and New Orleans Public Schools/Orleans
Parish School Board (“OPSB”) accounts. Stalter
alleges that, beginning in 2003, he was the lead account
executive for AJG on the Loyola and OPSB accounts in an
attempt to gain their insurance business for AJG. To that
end, Stalter development professional relationships and
produced bids for insurance products to be sold to Loyola and
OPSB. Stalter alleges that in March 2004, AJG managers asked
him to add insurance brokers to the Loyola account, including
John McLaughlin, Bill Powell, and Nancy Sylvester. Stalter
added the agents to the accounts, and AJG agreed to pay
Stalter 50% of the commission generated from the Loyola
alleges that in 2006, AJG sold insurance policies to Loyola
and OPSB that were produced by Sylvester. Stalter claims that
AJG sold those insurance products surreptitiously to deprive
him of commissions on accounts that he claims to have
generated. Stalter alleges that the Loyola and OPSB accounts
were included in the October 1, 2007, termination agreement
as accounts for which he would receive future commissions.
Stalter also alleges that from October 1, 2007, until March
2015, AJG periodically made commission payments in accordance
with the termination agreement, but has not made any ...