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Stalter v. Arthur J. Gallagher Risk Managment Services, Inc.

United States District Court, E.D. Louisiana

May 18, 2017

BREWSTER G. STALTER, II
v.
ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, INC., ARTHUR J. GALLAGHER OF LOUISIANA, INC., AND ARTHUR J. GALLAGHER & CO., COMPANY

         SECTION "S" (4)

          ORDER

          MARY ANN VIAL LEMMON UNITED STATES DISTRICT JUDGE.

         ORDER AND REASONS IT IS HEREBY ORDERED that Defendants' Motion for Summary Judgment on the Defense of Prescription (Doc. #14) is GRANTED.

         IT IS FURTHER ORDERED that Defendants' Rule 12(c) Motion for Judgment on the Pleadings, and Alternative Motion for Summary Judgment (Doc. #15) is GRANTED.

         BACKGROUND

         Plaintiff, 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.

         When 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 renewal.
• 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.

         The 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.

         On May 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 account.

         Stalter 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 ...


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