HomeMy WebLinkAbout13-2235 Supreme Co X lansylvania
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C, il.71.,v_,,er Docket No:
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Commencement of Action:
Ej Complaint [3 Writ of Summons OPetition
S Transfer from Another Jurisdiction 01 Declaration of Taking
Lead Plaintiff's Name: Lead Defendant's Name:
C Gunn Mowery,LLC Christopher A.Connolly
T Dollar Amount Requested: Owithin arbitration limits
I Are money damages requested? E3 Yes El No (check one) n outside arbitration limits
0
N Is this a Class Action Suit? 0 Yes El No Is this an MDJAppeal? 0 Yes El No
A Name of Plaintiff/Appellant's Attorney: Thomas A.French/Nicole Radziewicz
0 Check here if you have no attorney(are a Self-Represented 1Pro Sel Litigant)
Nature of the Case: Place an"X"to the left of the ONE case category that most accurately describes your
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you consider most important.
TORT(do not include Mass Tort) CONTRACT(do not include Judgments) CIVIL APPEALS
0 Intentional [3 Buyer Plaintiff Administrative Agencies
E3Malicious Prosecution 0 Debt Collection:Credit Card Board of Assessment
E] Motor Vehicle [3 Debt Collection:Other Board of Elections
Q Nuisance r7l Dept.of Transportation
[] Premises Liability r3 Statutory Appeal:Other
S Product Liability(does not include n Employment Dispute;
E mass tort) Discrimination
0 Slander/Libel/Defamation 13 Employment Dispute:Other [3 Zoning Board
C 0 Other: n Other:
T
[3Other:
O MASS TORT
E] Asbestos
N [3 Tobacco
n Toxic Tort-DES
Q Toxic Tort-Implant REAL PROPERTY MISCELLANEOUS
E] Toxic Waste nEjectment 0 Common Law/Statutory Arbitration
n Other: n Eminent Domain/Condemnation E] Declaratory Judgment
B OGround Rent Mandamus
E3Landlord/Tenant Dispute Non-Domestic Relations
13 Mortgage Foreclosure:Residential Restraining Order
PROFESSIONAL LIABLITY El Mortgage Foreclosure:Commercial Quo Warranto
13Dental n Partition Replevin
0 Legal 13 Quiet Title Other:
13 Medical [3Other: Equity-Injunction
E3Other Professional: —
Updated 11112011
4
Thomas A.French,Esquire » 'r � (�" () ?-+� Y
i
Attorney I.D.No.39305
Nicole Radziewicz,Esquire t fit jl i
Attorney I.D.No.314061
Rhoads&Sinon LLP +�i . �r�^��` �� �Y
One South Market Square �'`F1'P �'
P.O.Box 1146 LVANIA
Harrisburg,PA 17108-1146
P: (717)233-5731
F: (717)238-8622
Email: tfrench @rhoads-sinon.com
nradziewicz@rhoads-sinon.com
Attorneys for Plaintiff
GUNN MOWERY, LLC, IN THE COURT OF COMMON PLEAS,
OF CUMBERLAND COUNTY
Plaintiff
CIVIL ACTION-EQUITY
V. s eIV
, ;/
CHRISTOPHER A. CONNOLLY, : NO.
Defendant
NOTICE
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Cumberland County Bar Association
32 S. Bedford Street
Carlisle, Pennsylvania 17013
(717) 249-3166
1-800-990-9108
S
a� �
883100.1 'N O�XLI S<Q
AVISO
USTED HA SIDO DEMANDADO/A EN CORTE. Si usted desea defenderse de las demandas
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USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI
USTED NO TIENE UN ABOGADO, LLAME 0 VAYA A LA SIGUIENTE OFICINA. ESTA
OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN
ABOGADO.
SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE
QUE ESTA OFICINA LE PUEDA PROVEER INFORMA- CION SOBRE AGENCIAS QUE
OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE
CUALIFICAN.
Cumberland County Bar Association
32 S. Bedford Street
Carlisle, Pennsylvania 17013
(717) 249-3166
1-800-990-9108
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Thomas A.French,Esquire
Attorney I.D.No.39305
Nicole Radziewicz,Esquire
Attorney I.D.No.314061
Rhoads&Sinon LLP
One South Market Square
P.O.Box 1146
Harrisburg,PA 17108-1146
P: (717)233-5731
F: (717)238-8622
Email: tfrench @rhoads-sinon.com
nradziewicz@rhoads-sinon.com
Attorneys for Plaintiff
GUNN MOWERY, LLC, IN THE COURT OF COMMON PLEAS,
OF CUMBERLAND COUNTY
Plaintiff
CIVIL ACTION-EQUITY
V.
CHRISTOPHER A. CONNOLLY, NO.
Defendant
COMPLAINT
NOW COMES, Plaintiff Gunn Mowery LLC ("Gunn Mowery"), by and through its
attorneys, Rhoads & Sinon LLP, and files the within Complaint as follows:
INTRODUCTION
1. Gunn Mowery brings this action seeking preliminary injunctive relief to enjoin its
former employee, Defendant Christopher A. Connolly ("Mr. Connolly"), from unlawfully
diverting Gunn Mowery's insurance accounts in derogation of his employment agreement,
pending a final arbitration award. The Defendant's actions in unjustly competing with the
Plaintiff have resulted in a loss of business, and a continuing breach of contract, requiring the
intervention of equity.
PARTIES
2. Plaintiff Gunn Mowery is a limited liability company organized under the laws of
the Commonwealth of Pennsylvania, with a primary address of 650 North 12th Street, Lemoyne,
Pennsylvania 17043.
3. Gunn Mowery is a licensed insurance broker in the Commonwealth of
Pennsylvania that, in general, sells, solicits, and negotiates contracts of insurance for businesses
and individuals.
3. Defendant Christopher A. Connolly is an adult individual residing at 834 Hillaire
Road, Lancaster, Pennsylvania 17601.
4. Mr. Connolly is a licensed resident insurance producer in the Commonwealth of
Pennsylvania with a license number of 341690. He is authorized to sell Accident and Health,
Casualty and Allied, Life and Fixed Annuities, and Property and Allied lines of insurance.
JURISDICTION AND VENUE
5. Jurisdiction and venue are proper in this Court as the contract at issue was
executed in Cumberland County, Pennsylvania, and it is where the cause of action sued upon
arose.
6. Venue in this Court is proper pursuant to Pennsylvania Rule of Civil Procedure
1006.
7. This Court maintains jurisdiction of the matter, and has the power to issue a
preliminary injunction, prior to the issuance of a final arbitration award. See Am. Eutectic
Welding Alloys Sales Co. v. Flynn, 161 A.2d 364, 367 (Pa. 1960) (affirming lower Court's
issuance of a preliminary injunction pending the final outcome in an AAA arbitration, reasoning
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that: "arbitration would become a `hollow formality' if parties were able to irretrievably alter the
status quo pending the outcome of the underlying dispute.").
STATEMENT OF THE FACTS
8. Gunn Mowery is a Pennsylvania limited liability company engaged in the
business of providing insurance services to clients. Gunn Mowery has an office in Lemoyne,
Pennsylvania, among other places.
9. Gunn Mowery has been operating as an insurance broker in the community for
approximately thirty (30) years. At great expense and through persistent efforts, it has developed
a valuable book of business centered upon its client relationships.
10. Gunn Mowery takes great care to preserve its existing insurance accounts, and it
has entered into employment agreements containing restrictive covenants with employees as a
condition of employment.
11. Christopher A. Connolly became an employee of Gunn Mowery as part of Gunn
Mowery's acquisition of Community Banks Insurance Services ("CBIS"), whereby Gunn
Mowery acquired CBIS' book of insurance accounts and related assets.
12. On or about June 18, 2008, prior to the acquisition, and in consideration of
employment, Mr. Connolly entered into a Solicitor Agreement ("the Agreement") that contained
an initial three year term of employment, followed by an extended term of at-will employment.
The Agreement expressly provides that the insurance and client accounts developed by or
serviced by Connolly became the property of Gunn Mowery as a function of the acquisition. A
true and correct copy of the Agreement entered into between Gunn Mowery and Mr. Connolly is
attached hereto as Exhibit"A," and it is incorporated herein by reference.
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13. Contained in the Agreement was a Confidentiality & Non-Piracy provision ("the
Non-Piracy provision") coextensive with those contained in the employment agreements of all
other producers joining Gunn Mowery as part of the acquisition of CBIS.
14. The Non-Piracy provision was agreed upon to protect Gunn Mowery's legitimate
business interests in its existing customers. Mr. Connolly's agreement to abide by the provision
was a condition precedent to his employment with Gunn Mowery.
15. The Confidential & Non-Piracy provision, set forth in Paragraph 10 of the
Agreement, states that, "[i]n recognition of the fact that [Gunn Mowery] is engaged in a personal
service business involving personal relationships with its customers, the success of which
business is due to continuation of such personal relationships," Solicitor covenants and agrees:
"(a)... that he shall not following the start of his employment and for a period of three (3) years
of the termination of his employment with [Gunn Mowery] for any reason, directly or indirectly,
solicit, service, accept or otherwise divert any insurance business of any nature from any of the
insurance accounts of [Gunn Mowery] nor directly or indirectly assist or be employed by any
other party in doing so."
16. Paragraph 10(b) of the Agreement addresses the scenario in which Mr. Connolly
is sought out by existing clients, without any solicitation on his part. It provides he may accept
said business at his discretion, on the condition that he compensate the agency by paying
liquidated damages in the amount of "two (2) times the first year's commission on any such
policies/ risks accepted by [him], within thirty (30) days after the effective dates of the policies
in question being written by [him] or transferred through an agent-of-record letter."
17. In the event of a breach of Paragraph 10, Paragraph 10(d) explicitly provides for
"an injunction restraining Solicitor from the commission of such breach to the full extent hereof,
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or to such lesser extent as an arbitrator or court of competent jurisdiction may deem just and
proper for the reasonable protection of the rights and interests of[Gunn Mowery]," in addition to
other remedies, including damages for accounts lost valued at "three (3.0) times the net annual
commissions and/or fees earned by Agency during the preceding twelve (12)months."
18. In signing the Agreement, Mr. Connolly specifically acknowledged, in Paragraph
10(f), that a violation of Paragraph 10 "constitutes irreparable harm to [Gunn Mowery]."
19. Moreover, in Paragraph 10(f)(1)-(2), the Agreement specifically states that the
Non-Piracy provision was not meant by Gunn Mowery to unduly limit Mr. Connolly's
livelihood. Significantly, the Non-Piracy provision does not prohibit "employment in business
activities which are not in conflict with this sectionl0 [sic]" -rather- it only limits his ability to
divert existing business. Mr. Connolly acknowledged that "the enforcement of a remedy [under
the Agreement] by way of injunction would not prevent him from earning a reasonable
livelihood."
20. In addition to the Confidential and Non-Piracy provision, Paragraph 9 of the
Agreement contains a Confidential Information provision that states that information about Gunn
Mowery's customers constitutes confidential information, and that the Solicitor agrees not to use
to his benefit, nor divulge said information.
21. Also, the Agreement contains Enforceability and Severability terms that preserve
the enforceability of the various provisions of the Agreement, including the Confidential &Non-
Piracy provision, despite the invalidity or unenforceability of any other provision of the
Agreement.
22. Paragraph 11 of the Agreement addresses dispute resolution, and it provides that
controversies or claims thereunder are to be "submitted and determined by arbitration in
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Cumberland County, Pennsylvania in accordance with applicable rules in the American
Arbitration Association." The Agreement goes on to state that the arbitrator may award
injunctive relief, in addition to other remedies. As noted herein supra, the Plaintiff invokes this
Court's jurisdiction for the limited purpose of obtaining a preliminary injunction pending a final
arbitration award.
23. In regard to Mr. Connolly's work performance, Gunn Mowery's records reflect
that Mr. Connolly was a poor employee. There were a number of issues that arose with respect to
his improper handling of insurance applications (and paperwork generally), his inability to
generate new business, and his negative attitude towards his co-workers.
24. In particular, there was substantial concern that Mr. Connolly was engaged in
drinking while on company time due to complaints from other employees and from insured
clients, who reported erratic behavior and the strong odor of alcohol on his breath consistent with
the consumption of alcohol.
25. Resultantly, on or about November 17, 2011, after his initial three year term of
employment had expired, and at a time when Mr. Connolly was an at-will employee, a meeting
was held between partner Theodore Mowery and Mr. Connolly, at which time Mr. Connolly was
given notice of unsatisfactory performance and placed on probation.
26. During the meeting, Mr. Mowery specifically discussed with Mr. Connolly the
problems associated with his performance, including: his conduct in connection with certain
accounts, issues with his insurance and benefits, his attitude, and concerns about drinking on the
job.
27. During the meeting, Mr. Connolly was provided with a formal written notice of
unsatisfactory performance ("the Notice"), which set forth the terms of his probation. Both he
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and Mr. Mowery signed the Notice. A copy of Notice is attached hereto as Exhibit `B" and it is
incorporated herein by reference.
28. The Notice set forth various criteria that Mr. Connolly was required to satisfy in
order to retain his job. The Notice expressly states that termination would result if the criteria
were not met.
29. The criteria, inter alia, required Mr. Connolly to provide Mr. Mowery with a
weekly report "...on the weeks' activities in service and sales in all lines of production
[identifying] any service or claim issues you handled or were part of by the end of the day each
Friday." He was mandated to arrange an appointment approximately thirty days into the
probation period with Mr. Mowery to discuss Mr. Connolly's "remedial plan," which included
"how to increase trust from co-workers" and his plans to increase production. He was also
informed of the complaints against him regarding drinking on the job, and was notified that such
conduct would not be tolerated.
30. Mr. Connolly failed to meet the criteria outlined in the Notice. Specifically, he
failed to provide timely reports, he failed to arrange the required meeting with Mr. Mowery, and
he had ongoing service issues. Moreover, there were continuing reports that he still appeared to
be drinking while at work. Consequently, pursuant to the Notice, Mr. Connolly was terminated
on January 11, 2012.
31. Sometime following termination from Gunn Mowery, Mr. Connolly secured a
position as an employee or independent insurance producer for Heritage Insurance Agency,
located at 272 Locust Street, Columbia, Pennsylvania 17512.
32. Recently, Gunn Mowery learned that one of its accounts previously serviced by
Mr. Connolly, House of Pizza, Inc., retained Heritage Insurance Agency as its broker, and that
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Mr. Connolly is currently working as the individual insurance producer on the account, in
violation of the Non-Piracy provision contained in Paragraph 10 of his Solicitor Agreement.
Further, on information and belief, Mr. Connolly has solicited business from other Gunn
Mowery customers, including Warwick Machine Shop and Hummer's Meats.
33. Accordingly, by letter dated March 12, 2013, the managing partner of Gunn
Mowery, Mr. Greg Gunn, notified Mr. Connolly that he was in breach of the Non-Piracy
provision of his Solicitor Agreement. A true and correct copy of letter is attached hereto as
Exhibit"C" and it is incorporated herein by reference.
34. The letter enclosed an invoice for $2,768.10, which was equal to liquidated
damages in relation to the lost account valued at three (3) times the net annual commissions
earned by Gunn Mowery during the preceding twelve (12) months, pursuant to Paragraph 10(d)
of the Agreement. A true and correct copy of invoice is attached hereto as Exhibit "D" and it is
incorporated herein by reference.
35. Mr. Connolly responded to Gunn Mowery's March 12, 2013 letter through an
undated correspondence, later in March. In this correspondence, Mr. Connolly stated that "[d]ue
to the fact that I was terminated from my employment, the covenant ...referenced is not
enforceable." A true and correct copy of the undated correspondence from Mr. Connolly is
attached hereto as Exhibit`B"and it is incorporated herein by reference.
36. Contrary to Mr. Connolly's conclusions of law, he is bound by the Solicitor
Agreement he entered into with Gunn Mowery, and the Non-Piracy provision contained therein.
Mr. Connolly received valuable consideration in exchange for his covenants, in the form of an
initial three year term of employment followed by ongoing at-will employment, in addition to
other benefits and training. Furthermore, "[i]t is clear that a restrictive covenant can be enforced
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even if an employee is terminated by an employer." Shepherd v. Pittsburgh Glass Works, LLC,
25 A.3d 1233, 1246 (Pa. Super. Ct. 2011).
37. In response to Mr. Connolly's undated correspondence, Gunn Mowery's counsel
sent Mr. Connolly and Heritage Insurance formal cease and desist letters. Gunn Mowery's
counsel advised Mr. Connolly that legal action would be instituted against him if he did not
abide by the terms of his Solicitor Agreement and stop soliciting Gunn Mowery's clients.
Counsel further reasserted Gunn Mowery's rights to injunctive relief as contemplated by the
Solicitor Agreement. Copies of the Cease and Desist Letters are attached hereto as Exhibit"F."
38. The cease and desist letter furnished to Mr. Connolly stated that if he failed to
confirm, within ten (10) days of receipt of the letter, that he would honor the terms of the
Agreement going forward, legal action would be commenced and an injunction would be sought.
Mr. Connolly, to date, has failed to respond to the letter.
39. As a result of Mr. Connolly's actions in breaching his Solicitor Agreement, Gunn
Mowery has lost a valuable business account, which it took active steps to protect from
diversion. Further, Mr. Connolly has stated and demonstrated through his actions that he intends
to continue to solicit Gunn Mowery clients in breach of the Solicitor Agreement, causing
continuing harm and damages to Gunn Mowery.
40'. Pursuant to the Solicitor Agreement, Gunn Mowery has filed a Demand for
Arbitration before the AAA seeking permanent injunctive relief and damages as permitted by the
Solicitor Agreement. A true and correct copy of the Demand for Arbitration is attached hereto as
Exhibit"G."
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COUN'LI-PRAYER FOR INJUNCTIVE.RELIEF
41.. The averments contained in Paragraphs 1-40 above are incorporated by reference
as if set forth more fully herein.
42. A preliminary.injunction enjoining Mr. Connolly from violating the Solicitor
Agreement through.servicing House of Pizza, and other Gunn Mowery accounts (including
Warwick Machine Shop and Hummer's Meats), during the pendency of,binding arbitration.is
reasonable in.scope, as it will preserve the status quo, and will ensure that the arbitration is not a
"hollow formality." See Am. Eutectic Welding Alloys Sales Co. v. Flynn, 161 A.2d 364, 367
(Pa. 1960) (affirming, lower Court's issuance of a preliminary injunction pending the final
outcome in an AAA arbitration, reasoning that: "arbitration would become.a `hollow formality'
if parties were able to irretrievably alter-the status quo pending the.outcome of the underlying
dispute.").
43. The Non-Piracy provision contained in Paragraph 10. of the Solicitor Agreement
is clear and unambiguous in its terms prohibiting Mr. Connolly from soliciting Gunn Mowery's
existing insurance accounts for a period of three years post-employment.,
44. The Defendant understood and accepted said terms in the Agreement, in
consideration of employment, as evidenced by his signing of the same on June 18, 2008.
45. Mr. _Connolly violated his Non-Piracy provision by servicing one of Gunn
Mowery's accounts, namely House of.Pizza, Inc., within three years of his termination (he was
terminated on 1/11/12, and as of 3/12/13 he was acting as the insurance producer for House of
Pizza, Inc.).
46. The restrictions set forth in Paragraph 10 of the Solicitor Agreement are
enforceable.
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47. The Defendant has violated and materially breached the terms of his Solicitor
Agreement through diverting one of Gunn Mowery's accounts within three years of his
termination.
48. Further, Defendant has anticipatorily breach the Solicitor Agreement by refusing
to cease and desist soliciting Gunn Mowery's clients and in stating that the Solicitor Agreement
is "unenforceable," thereby expressing his intention to continue to solicit and accept business
from Gunn Mowery clients and to refuse to pay liquidated damages to Gunn Mowery, all in
breach of the Solicitor Agreement.
49. Defendant's violation of the Non-Piracy provision, and anticipatory breach of the
Solicitor Agreement, has caused and will continue to cause irreparable harm to the Plaintiff
through the ongoing loss of business relationships. Plaintiff established valuable relationships
with its customers over the course of years. Mr. Connolly's.unbridled and continued violations of
the Solicitor Agreement have resulted in incalculable damage to Gunn Mowery's business due to
the interference with these relationships, constituting justification for equitable intervention. See
John G. Bryant Co., Inc. v. Sling Testing & Repair, Inc., 471 Pa. 1, 9, 369 A.2d 1164, 1168
(1977) (affirming preliminary injunction, in non-compete context, where interest sought to be
protected was a customer relationship, which is an interest that is "clearly incapable of adequate
protection by monetary damages," and which warrants equitable relief).
50. A preliminary injunction pending a final arbitration award is required to
reasonably abate further immediate and irreparable injury to the Plaintiffs business interests and
opportunities, and it will restore the parties to the status quo as it existed prior to the Defendant's
unlawful actions.
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51. Plaintiff will likely prevail on its breach of non-compete covenant claim against
Mr. Connolly in arbitration, as he is subject to a binding Solicitor Agreement, which: sets forth a
reasonable, clear and unambiguous Non-Piracy provision, is incident to his Solicitor agreement,
and has been violated through his actions in diverting one of Gunn Mowery's insurance
accounts.
52. Gunn Mowery has no adequate remedy at law to compensate for the loss of its
relationship with House of Pizza.
53. Greater harm will result if a preliminary injunction is not granted because Mr.
Connolly will be permitted to continue his actions in diverting Gunn Mowery's business, and,
specifically, because he will be able to further interfere with the House of Pizza account, in
derogation of the Solicitor Agreement. If a preliminary injunction is granted, Mr. Connolly will
still be able practice his trade, and he may otherwise lawfully pursue his livelihood, beyond
House of Pizza.
WHEREFORE, Plaintiff respectfully requests a Preliminary or Special Injunction, after
expedited discovery and an evidentiary hearing, to remain in place until a Final Order is issued in
the arbitration proceedings before the American Arbitration Association between the parties,
prohibiting Defendant from the following:
(a) Soliciting, inducing, recruiting, encouraging, assisting, advising, or directing any of
Gunn Mowery's clients to cease doing business with Gunn Mowery and/or assisting or
participating in any way in the transfer of business from Gunn Mowery to Heritage
Insurance Agency, or any other agency or entity.
(b) Continuing to Solicit the House of Pizza, Inc. account;
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(c)Violating the terms of the Solicitor Agreement,
together with other relief that this Honorable Court deems as appropriate.
Respectfully submitted,
RHOADS & SINO LLP
By:
Thomas A. French
Nicole Radziewicz
One South Market Square, 12th Floor
P.O. Box 1146
Harrisburg, PA 17108-1146
(717)233-5731
Attorneys for Plaintiff Gunn Mowery, LLC
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VERIFICATION
G7 .z� , for Gunn Mowery, LLC deposes and says, subject to the
penalties of 18 Pa. C.S. § 4904 relating to unswom falsification to authorities, that he is
authorized to execute this Verification in his capacity as Mg,,,n;. xsd that the facts set
forth in the foregoing"Complaint"are true and correct to the best of his knowledge, .information
and belief.
Date: /
16
EXHIBIT "A"
GUNN—MOWERY LLC / CONNELLY
SOLICITOR AGREEMENT
p�-
THIS AGREEMENT is made and entered into this .01day of To fA e, 2008 by
and between:
• GUNN-MOWERY LLC, a Pennsylvania, limited liability company having its
principal place of business at 650 North Twelfth Street in Lemoyne,
Pennsylvania (the "Agen-cy") ; and
# CHRISTOPHER A. CONNOLLY ("Solicitor")
RECITALS
A. Solicitor is duly licensed by the state of Pennsylvania to engage in the
insurance business for the purposes set forth herein,
a. Agency conducts'-,. as 'general insurance agency business duly. licensed., as...,,
such by the State of Pehh yl- ania-.
C. Agency desires to retain Solicitor as an employee and not as an
.independent contractor, and. Solicitor desires to be so retained -..as an .
employee upon the terms and conditions hereinafter set forth.
D. Solicitor understands that Agency is undertaking a major acquisition of
a book. of. insurance accounts and related assets from CommunityBanks Insurance
Services ("CBIS-") for which Solicitor has heretofore been a producer, and
that Agency would not consummate that agency acquisition from CBIS without
the protection of this Agreement being executed in advance by Solicitor and
other producers coming over to Agency in conjunction with that acquisition.
In order for him to remain involved with the book of business, carried under
his name at - CBIS, Solicitor has induced Agency : to proceed with that
acquisition 'in reliance upon Solicitor's -wil-lingness to execute and become
bound by this Agreement well in advance of Agency's acquisition of that CBIS
agency..
E. Solicitor understands that Agency would ' not even consider undertaking
the acquisition of CBIS without Solicitor and other CBIS producers executing
Agreements at or before closing of that -acquisition and before he starts work
at Agency. Solicitor understands and agrees that Agency' s undertaking that
acquisition shall in and of itself .,constitute timely and legally sufficient
considera,tion to Solicitorp b-r., becoming bound by the provisions of this
Agreement.
NOW TFEREFORE, in consideration of the mutual covenants and agreements
con--ained herein, the parties agree as follows:
1. Tenn. Agency retains Solicitor as an employee on the terms and
conditions hereinafter specified, to commence employment or. the 1st day of
August., 2008 which is the. anticipated Closing date for Agency' s acquisition
n-.kfo—v sots r or ;t;r reex.o= Page
of the' OBIS assets (or whatever day the Ciosing of Agency' s acquis.Lt..Lun ul.
the CiIS assets takes place within 30 days on either side of that anticipated
Closing date) , contingent only on Agency's consummating that purchase from
CBIS.
(a) The initial term of this relationship shall be for a period of
three (3) years, (the "Initial Term") unless terminated earlier in
accordance with the Termination Section 12 below,
(b) Agency will be spending a lot of money and time henceforth on due
diligence and professional fees, etc. , preparing for the purchase of the
CBIS agency operation, all in reliance upon Solicitor 'honoring this
Agreement. Agency would suffer substantial damages, i-n the event
Solicitor were to refuse to honor it, including his doing so during the
time between now and the anticipated August 1, 200.8 Closing of 'Agency's
acquisition of the CBIS assets, thereby contributing to Agency having to
abandon the purchase. Therefore, Solicitor agrees that this is- a
mutuall y binding obligation and Solicitor shall be liable to Agency for
its loss an'd/6i- dainaqes shou
Id Solicitor refuse to. honor, this-..Aqreemen-t,:•
,
henceforth. Solicitor shall also remain bound by the Section ' 10
Confidentiality & Non-Piracy restrictive covenants below in the event he
were to otherwise refuse to honor this Agreement and Agency nevertheless
consummates- its -purchase of the CBIS ..assets.
2.. Solicitor's Obligations. During the term of this relationship, Solicitor
agrees to devote full time and efforts on behalf of Agency and shall
diligently and faithfully pursue 'the business of Agency. He shall be
responsible for the solicitation and production of general insurance bus'iness
on behalf of Agency. He shall be generally available to assist in the
servicing of the needs of tffe accounts -generated and to serve as a liaison
between Agency, its markets, accounts, ' and such account executives or
employees along with other reasonable tasks as may be . assigned to such
accounts in order to assist in the retention of such business.
3. Exclusive RelationshAp. All insurance business, including renewals,
produced by Solicitor during the continuation of this relationship shall, be
written through Agency and if brokered, it shall be done only in the name of
Agency, and only with Agency' s written consent.
4. Ownership of Accounts. Notwithstanding the fact that Solicitor may have
had an ownership interest year ago in some of the accounts presently carried
under his producer code, that has not been the case for some time and all
business produced by Solicitor heretofore or henceforth as well as business
produced by any producing arms, related affiliates, subsidiaries, wholly-
owned agencies or other entities under the ownership and control of this
.Agency are and . shall remain the properiy, of the agency regardless of source
code, including policy expirations and the right to renew the same, as may be
coded or otherwise identified to indicate its source of production, however,
notwithstanding such identification, all such business, including the
expiration data and all files and records in connection therewith, shall be
the sole and exclusive property of Agency. and shall continue to be so after
the termination of this relationship, however caused,, and although he
acknowledges that he has no ownership rights in that book of business while
Agreement saga 04!
employed by CBIS, Solicitor nevertheless, hereby- unconciit3.ona.L1y ana
'
irrevocable waives and releases all claims of right or ownership thereto and
cbvenants that he shall not make or retain copies of such property,
s, correspondence and Funds. All correspondence shall be carried on in
Agency' s name. All premium's shall be billed by and shall be owed to Agency,
all checks and drafts. in payment of such premiums shall be made payable to
Agency, and all money received in payment of premiums or other fees. shall be
turned over to Agency within 24 hours of receipt in the form received. and
deposited in Agency' s account,
6. Compensation. As full compensation for the solicitation, production and
servicing of insurance business hereunder and for all ' services of every
nature rendered by Solicitor - under and -pursuant to t'his Agreement, Agency
agrees to compensate Solicitor� with a salary in the amount of $7, 333.34 per
month, adjustable January 1st of- each year going forward at an annualized
figure equal to: (i) thirty percent (30%) of gross revenues collected during
the prior 12 months , (not including contingents or . profit sharing , from
-carriers) from Solicitor I s book-of' businets :carried under,. his prod.ucer -code;
plus (ii) a monthly subsidy equal to one-twelfth times a $25, 000. 00
annualized total the first year, reducing by $5,000.00 annualized per year
for each full year of employment'. His salary may be otherwise renegotiated in
addendum to this Agreement reflecting any such changes.
,(a) Solicitor shall also receive additional bonus compensation monthly
equal to one-twelfth times a $10,000•.00 annualized total the first year,
reducing by $2, 000.00 annualized per year for ' each full year of
employment;
(b) He shall receive a Car Allowance of $400. 00 per month or
equivalent, $25.00 per month cell phone reimbursement, up to $100. 00 per
month reimbursement for general and entertainment expense allowance; and
(c) Other agency-wide employee benefits such as group medical coverage
shall be provided- in accordance with Agency' s standard program.
7. Timm on all new or renewal business written by Solicitor, all
outstanding accounts must be paid into Agency not later than the (Ist) day of
the second calendar month after the effective date of the insurance. If not
paid in by that time, the same shall be charged to the account of Solicitor.
a. charge-Backs. Any sums paid to Solicitor pursuant to this Agreement
shall be subject to an adjustment in the event that subsequent to said
payment Agency shall be required to pay and return premiums on business for
which Solicitor shall have been paid a portion of the premium on such
business. The provisions of this paragraph shall continue after the
termination of Solicitor' s employment, however caused, and Agency shall be
entitled to set off against any sums due Solicitor such amount of return
commissions that he shall owe to Agency hereunder and Agency shall be
entitled to collect such charge-backs from Solicitor even after termination
of this relationship for any reason.
Page 3 at 1."
—--2- .
9. ,Confidential information. Solicitor agrees , that aii information or any
kind whatsoever governing the insurance of Agency's customers (inclusive of
b.ut not limited to those accounts produced by Solicitor) including expiration
data, risk profiles, computer database, customer or contact lists, prospects
or projections, Internet web site information, email addresses, processes,
policy contracts and - expiration dates and any other compilations in
connection therewith constitute confidential information and trade secretes
of Agency and will be treated by him as such, and that both during and after
the term of this relationship, however , it may be terminated, he shall not
directly or indirectly make use of such information or any other confidential
information concerning Agency' s business for his own benefit, nor divulge
such information to any other parties not duly entitled thereto nor retain. or
create any lists of Agency' s customers for his own.- personal use nor reveal
the same to any other party.
10. Confidentiality In recognition of the fact that Agency is
engaged in a personal service business involving personal relationships with
: its customers, the success of which business is due to . continuation of such
personal relations hips Solibi tbr� do e s hereby covenant and agree-as follows.
(a) Solicitor agrees and covenants that he shall not following the
start of his employment and for a period of three (3) years after
termination---of- his- employment -with- -Agency- for -any - reason,- .,directly or
indirectly, solicit, service, accept or otherwise divert any insurance
business of any nature from any of the insurance accounts of Agency nor
directly or indirectly assist or be employed by any other party in doing
SO.
(b) Notwithstanding the above, however, the parties hereto agree that
in the event any such customers of Agency actively seek out Solicitor's
assistance and, without any solicitation. or interference of Solicitor
request Solicitor to accept insurance from them, then Solicitor may, at
his discretion, accept said business. In the event any such business is
accepted, however, Solicitor agrees to compensate Agency by way of
paying to Agency two (2) times the first year' s commission on any such
policies/risks accepted by Solicitor. Payment to Agency shall be made
within thirty (30) days after the effective date of policies in question
have been written by Solicitor or transferred over on an agent-of-record
letter.
(c) In the event of a breach or threatened breach by Solicitor of the
provisions of this section 10, it is agreed that the terms of the
provision may be enforced by an injunction restraining Solicitor from
the commission of such breach to the full extent hereof, or to such
lesser extent as an arbitrator or court of competent jurisdiction may
deem just and proper for the reasonable protection of the rights and
interests of Agency. Nothing herein contained shall be construed as
prohibiting Agency from pursuing any other remedies available for such
breach or threatened breach including the recovery of money damages .
(d) It is further agreed that in the event of a breach by Solicitor of
the terms of this section 10, which breach shall have been the proximate
cause of any loss of business to Agency, and in the event an arbitrator
or court of competent jurisdiction shall award damages to Agency ds a
- result of such breach, then, it is agreed by the parties that the
measure of such damages shall be three (3.0) times the net annual
commissions and/or fees earned by Agency during the preceding twelve
(12) months from all insurance written by Agency for all accounts lost
by Agency as a result of Solicitor' s actions in breach of this
paragraph, which shall constitute liquidated damages hereunder. .
(e) The covenants contained. in this paragraph shall be construed as
independent- of any other provisions in this agreement, and the existence
of any other- claim o= cause of action by Solicitor against Agency or any
of its agents or employees and the -same shall not constitute a defense
to the enforcement of the within -covenants. Solicitor shall. and does
hereby agree to reimburse the agency for its expense, including without
limitation its reasonable attorney' s and expert witness . fees, in the
enforcement of this section.
(f) Solicitor- acknowledges that any violation of this paragraph by
'Solicitor . constitutes. : -irreparable• harm, to
the, agency, its . agents,
servants, employees, affiliates, subsidiaries, producing arms and other
related entities entitling the agency and any such other entities to
injunctive relief.
(1) Solicitor -further acknowledges, agrees and stipulates that in
the event of termination of his employment with Agency, his
experience and capabilities are such that he can obtain employment
in business activities which are not in conflict with this
sectionl0 and that the enforcement of a remedy hereunder by way of
injunction would not prevent him from earning a reasonable
livelihood.
(2) The provisions of this Agreement shall be enforceable
notwithstanding the ,existence of any claim or cause of action by
solicitor against Agency, - any affiliate, or a-ny person or entity
affiliated therewith, whether predicated on this Agreement or
otherwise. -
11. Dispute Resolution. The parties are desirous of avoiding litigation.
Therefore, they agree that any controversy or claim involving this Agreement
or this relationship shall be submitted to and determined by arbitration in
Cumberland County, Pennsylvania in accordance with the applicable rules in
the - American Arbitration Association. The decision rendered by such
arbitration will be binding, conclusive, and final on the parties and judgment
upon the award •rendered by the arbitrator may be entered in any court having
jurisdiction thereof. . A single arbitrator shall be used. "The arbitrator
shall follow and apply the laws of the Commonwealth of Pennsylvania. The
arbitrator may award injunctive relief or any other remedy available from a
judge, but shall not have the power to award exemplary or punitive damages.
In any arbitration proceedings hereunder the substantially prevailing party
shall be entitled to reimbursement from the other party for all out of pocket
expenses, including reasonable attorneys ' and expert witness fees sustained
or incurred as a result of such arbitration proceedings (and any appeal or
Page 5 of 10
a.ption• for enforcement by a court of an arbitrator' s rinaings li 11ec:c5tiaiy)
as determined by the arbitrator.
12 . _Termination. Solicitor' s employment during the 3-year Initial Term of
this relationship may be terminated by Agency only upon one 'or more of the
following events:
(a) Death. By solicitor' s death;
(b) Disability. If . Solicitor becomes Permanently Disabled as .defined
below, Solicitor' s commissions and employee benefits shall be paid .,in
full following the onset of a condition. that may develop .into a defined
:P.ermanent Disability until the effective : date of .termination or any
leave of absence; . or
(c.) .For cause. In .addition, Solicitor may be terminated for "Cause",
defined as follows:
(11) Immediate Termination.. : Cause for :':.immediate termination shall
be-
(i) Fraud or dishonesty;
(iii) Violation of a State or Federal law involving,
commission of a crime against Agency;
(i:ii) Conviction of a felony; or
( -V) Loss of his Pennsylvania State insurance license.
(2) Arb-itrated..Termination., Cause for termination following notice
and arbitration .pursuant to paragraph (d) below, shall be defined .
as:
(i) Failure or refusal to, faithfully and diligently perform
the usual and customary duties of the position - for which
Solicitor was employed or to adhere to the provisions of this
Agreement;
(ii) Failure or refusal to comply with the employment
policies, standards or regulations established by Agency from.
. time to time not in conflict with provisions of this
Agreement;
(iii) Negligence in the performance of or inattention to the
duties properly assigned to him;
(iv) Intentional injury to Agency, its customers or its
assets
(v) Engaging in prohibited harassment or creating a hostile
work environment in violation of Agency policy;
.Owe--y Sc._c_'.. A=ee-
(vi) Misuse of alcohol or controiled sunstances i.n d uid11«cJ.
which materially impairs Solicitor' s ability to perform his
duties hereunder; or
(vii) Material default by Solicitor with respect to the NON-
COMPETE Section below.
(d) Notice of Cause.
(1)
For Immediate Termination: • Whenever a breach of this
Agreement pursuant to paragraph 12 (c) (1) above is . asserted by
Agency as the basis for terminating this relationship, . Agency may
give Solicitor notice and terminate him immediately.
(i) Provided, however, that if Solicitor notifies Agency
within- 30 days following such notice that he disputes the
Cause for termination, then the issue of sufficient Cause
shall immediately be submitted to arbitration as :set forth
herein' and .
In the event the arbitrators determine that termination
was inappropriate according to terms hereof, then Solicitor
shall be immediately reinstated with retroactive compensation
and benefits.
(2) •For Arbitrated Termination. Whenever a breach of this
Agreement pursuant to subparagraph 12 (c) (2) above is asserted by
Agency as Cause for terminating the relationship, before such
termination can become effective Agency shall give Solicitor at
least thirty . (30) days' written notice of the existence and nature
of the Cause, and an opportunity to correct it during that 30-day
period.
(i:)• If the breach is not cured within that time period, this
relationship may be terminated; provided, that if Solicitor
notifies Agency during that time period that he disputes that
determination of "Cause", then the issue of sufficient Cause
as defined above must be submitted for arbitration as set
forth below and a determination made by the arbitrator that
there was sufficient Cause before any such termination can be
effected.
(ii) This notice and cure provision shall apply only where
breach of this Agreement for Cause is asserted as the basis
for termination, and shall not apply in any other situation.
(®} Without cause. If Solicitor is terminated by Agency during the
Initial Term without "Cause" as defined above, then he shall be
entitled to his base salary and benefits pursuant to this Agreement
through the end of the Initial Term hereof, less any amounts thereafter
received by him during such Initial Term `rom other employment or from
unemployment insurance.
���-H.vert n'.._sz��r Aes rimer.:
M By Solicitor. Soiicitor may VuluiLLc1111y +«s+ u
emplroyment during the Initial Term upon thirty (30) days prior notice
to Agency.
(g) During Any Extended Term. Following that 3-year Initial Term,
Solicitor shall be and remain an employee "at-will" and either party
may terminate Solicitor's employment for any reason or for no reason at
all upon thirty (30) days prior notice to the other during any such
extended .term.
(h) Payments Due Deceased Employee. If Solicitor were to .die. during
his employment hereunder, any compensation and/or benefits due him
under this 'Agreement - for services prior to his death shall be paid. to
his administrators, heirs, personal representatives, or their
successors and assigns. In no event shall anyone be entitled to assume
solicitor' s employment rights or responsibilities under this Agreement.
(i) "Permanent Disability" or "Permanently. Disabled" . For purposes of
this Agreement, Solicitor shall be deemed . to be "Permanent'l'y: Disabled"�
if (a) he suffers from bodily infirmities o-r disorders, diseases,
injuries (including self-inflicted injuries) , addiction to substances
hazardous t.o health (including narcotics and alcohol) , or mental
illness, and (b) if one of the following conditions is also satisfied.
(1) Under the terms of a bona fide disability income insurance
policy which insures him, the insurance carrier that underwrites
such policy determines that he is partially or totally disabled for
purposes- af such';insurance policy;
('2�) The State determines that he is partially or totally disabled
for purposes of collecting benefits under State industria-1
insurance;
(3) •p physicia•n licensed to practice medicine in the state in which
he resides, who has been jointly selected by him (or the
conservator of his estate) and Agency, certifies that he is
partially or totally disabled such that he will be unable to be
employed gainfully for a six (6) -month period in the position that
he occupied prior to the onset of such condition (the costs and
expenses of the evaluation and report by that physician shall be
borne by Agency) ; or
(4) He and Agency agree in writing that he is disabled in such a
manner.
13. General Provisions.
(a) Enforceability. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or
enforceability of the remaining provisions, and this agreement shall be
construed as if such invalid or unenforceable provisions were omitted.
as
Cr_ aY tame p a 3 a. ..
(b) Modification. Modifications, changes and amendments to this
' Agreement and the relationship established thereby shall be valid only
if in written form and signed by the parties to this Agreement or their
authorized agents.
(c) Entire Agreement. This Agreement supersedes all previous oral or
written agreements between Agency and Solicitor.
(d) Notice All notices, requests, demands, and other communications
with ' respect hereto shall be in writing -sent either by national
overnight courier or by certified mail,, return, receipt requested, to the
party's address s.et forth on the signature page below. Any, party may
change its 'address for purposes of this Section by giving the • other
party notice ' thereof in that same manner. Notice shall be deemed
effective the date of delivery to the recipient if by courier, or three
(3) days following mailing in the prescribed manner.
.(e). Seyerabili.ty. It -is intended that each provision he_reo_£'-,,,be -.viewed, ,,
as separate and divissble, and if any provision is :held £o hp i,nvalid,. -
void or unenforceable, the remaining I provisions shall continue in full
force and effect and the parties agree that they shall rewrite the
unenforceable provision (s) to effect the original intent hereof.
(.f) No Presumption. Sho.uld any provision hereof require judicial
interpretation, the arbitrator or court interpreting or construing same
shall not apply a presumption that the terms hereof shall be more
strictly construed against one party, by reason of the rule of
construction that •a document is to be construed more strictly against
the party who itself or through its .agents prepared same, it being
acknowledged that both parties hereto have participated in the
preparation hereof.
(g) Counterparts. This Agreement may be executed in any .number of
c6unteiparts, each of which shall be deemed to be an original.
Signatures transmitted by facsimile shall be deemed original signatures.
(h) Su-ccessors and Assigns. • This Agreement shall be binding upon and
inure to the benefit of the parties hereto, and their respective heirs,
successor and assigns and including without limitation any transfer of
the agency' s business by way of asset sale, stock sale, merger or
otherwise; and Solicitor shall remain bound by the restrictive covenants
herein following any such transfer of Agency' s business without the need
for any additional consideration to Solicitor.
(i) Time. Time is of the essence of this Agreement.
(j) Ages ncy' s Rights_ of Offset. In the event of a material default by
Solicitor pursuant to this Agreement or any Exhibits hereto, including
specifically but without limitation the confidentiality and non-piracy
provisions, or if Agency incurs a subsequent loss or damages as a result
of Solicitor' s violation hereof, then Agency shall be entitled to offset
and deduct the amount of the resultant loss or damages from any amounts
that still remain owed to Solicitor pursuant to this Agreement at that
?a 70 9 2:f!I*Var� So:s.�_��r ayraeaer.: ,•>
time. In the event that the amount of such orrsem ana aeauuu.Lun
°inadequate to fully compensate for the events described above, then
Agency shall be entitled to recoup from Solicitor whatever portion
thereof that is required to fully compensate Agency for the loss
suffered. Notwithstanding anything herein to the contrary, Agency' s
election of "offset, deduction and/or recoupment shall .not prevent Agency
from pursuing any claim for. any remaining unrecovered damages.
16. Separate :Coums.el. Solicitor hereby- acknowledges that - he has carefully
read all of the terms hereof, and agrees. that they are necessary for the
reasonable and., .proper .protection of Agency'.s:. business; that Agency has been
induced to enter nto .:tls Agreement upon the representation of Solicitor
that he will abide by and be bound by each of the aforesaid provisions THE
AGENCY HAS BEEN REPRESENTED BY ITS OWN LEGAL COUNSEL. SOLICITOR HAS BEEN
ADVISED TO SEEK INDEPEND.'ENT LEGAL COUNSEL OF HIS OWN; HE HAS "EI:THER DONE 50:
.TO HIS SATISFACTION, OR BY SIGNING BELOW CONFIRMS THAT HE HAS INTENTIONALLY
WAIVED HIS OPPORTUNITY TO DO SO. THERE IS NO JOINT REPRESENTATION.
IN THE WITNESS, -wHEREOF;';the parties have hereunto set. their.-hands-on. : . .the: date;•
and year first above written for the purposes set forth in this Agreement.
AGENCY:
GUNK-MOWEFtY LLC
W' nu
Its . .Ma.-r�at n; rtner
�
SAL OR:
n•
fitne's's CHRISTO HER A. CONN:i�iLLY
Street Address For Solicitor: Agency Address :
650 North Twelfth Street
Lemoyne, Pennsylvania 17043
EXHIBIT " B "
November 17,2011
GUNN MOWERY
the uprids of Ineunvoe
Christopher Connelly
Account Executive
Momrt Joy Office 050 N.1Wa1B1t Street
Lemoyne,PA 17043
PQ Box 900
Camp HIO,PA 17001
Re:Formal Notice of Unsatisfactory Performance P(rj7)701-4600
t=pj7)791•ei6e
7F(600)840•i243
www.gurAii4owerV.com
Dear Chris, •
This is to give you formal notice that I do not feel you are satisfactorily
performing the duties of an Account Executive.I am putting you on probation
-•• .fora period of sixty(60)days beginnitrg November 17,2011.You,will be
available to meet with me by phone or in person on a regular basis;
Issues and Criteria:
y
• Provide me with areport on the weeks' activities in service and sales in
all lines of production and identify any service or claim issues you
handled or were sit of b end of the day {r•�`� '"�''`='y
1? Y each Friday. •'•�°.D`.:...: .�,.
•
Arrange appointment with me during the second week of December to
discuss your"remedial plan".Your`�•emedial plan"should include how
to increase trust from co-workers and how you plan to increase
production,
You will have a meeting with each of your co-workers to apologize and
• tell them that you plan to improve. '
• Any issues of distrust or lack of initiative from the CSR's will be
addressed accordingly.
• Let CSR's handle paperwork,to give you time to work on new i
business.However if it requires your involvement it is to be done
promptly and professionally. {:
• There must be no drinking while on company business.
c'
If at the end of the sixty(60)days you have not met the criteria defined above,
you will be terminatedicThis agreement is not intended to alter the
employment-at-will relationship.
Page 1 of 2
921 W.Mein skeet 1 East Harrleburg 61reet 1400 Marlin Street
Mount Joy,PA 17652.0477 OlAsbury,PA 17019 State College,PA 168D3
P (717)003.1461-F(717)953.9174 P (717)432.9635-F p17)432-3074 P(814)237.2491-F(B14)237.1201
I .
I am confident that you can accomplish my expectations and I assure you that I(`jUNN MOWEKY
will be available to assist in any way I can,Please feel free to call me at any tna uprlda of I murmw
time the need arises.
866 N,iWeifth 8lraat
Sincerely, LarnoMe,PA 17643
P.O.Soft ooh
Cupp HIM,PA 17001
P(7y7)781-0188 17)7a1.4666
Theodora W.Mowery,Partner (77
F
7F(�0)840.1243
w)wa6unnmofvaryaom
Acknowledgemen '•���,;
• •/.,-Via.//" .t,• ..
The M •Dato
r;a,i.•,
Christopher Connelly Date
Page 2 of 2
• f
f
321 W.Main Strout 1 East Harrleburg Street 1450 Martin Street
Mount Joy,PA 17862-0477 6lpaburg,PA 17019 State collage,PA 18803
P (717)853.1481•F(117)e53.8174 P(717)432.9836•F(717)432.3074 P(814)237.2491•F(814)237-1201
t
EXHIBIT " C "
_c
March 12, 2013
Mr. Christopher A. Connolly,
-Heritage Insurance,Agency GUNN M0WEKY
the upsldeiplInsurance
272 Locust Street
Columbia-.PA-17512' ;m
650 N."i1 (fth'Street
Lemoy. A'17043
Dear Chris: Box 900
Camp FA.17001
It has come to our attention that you are now the broker for House of Pizza.lnc. P v "'pe1-4800
F(!' .861.6169
The Solicitor Agreement between us dated June 18,2008 and attached states under rF( ' 0-1243
vAvw n" ery com
paragraph 10 (a)that you are not,for a period of three (3)years after termination of
your employment with us,to solicit, service, accept br otherwise divert any insurance.
business from us.
The agreement also states under paragraph 10(d)that if you do, damages shall b.e three
(3)times the net annual commissions earned by the Agency during the preceding twelve.
(12) months.
Attached is our invoice for the amount listed above. If you intend to abide by the
agreement; please acknowledge within the next 10 days and forward your or your
agency's check for the full amount within the next 30 days.
Our expectation is that you would also provide a list to us monthly of any other business
L•
that you divert away from us. G;
As you know, we have had several producers leave us over the years and they have all
� .
generally honored their agreements-with us and we have been able to handle items like
this cordially and without either side incurring any-legal costs. Our strong preference is
to handle this situation.in the same manner and hope that you are amenable to that. If
not, we will obviously have to protect our interest as I am sure you can understand.
t.
Chris, we wish you the best of luck in your new position and hope this.issue can be s `Y«
resolved quickly and without conflict. ; •L;
a�Z� yls
Thank you. '
pectfu!I y. '
Res '�/:
hy'}Yrr
�yyYYtt'i-Z�i'��
G. Greg CIC { µ
E x;. a:.
Managing Part er
205 Granite Run Drive 1 East Harrisburg Street 1450 Martin Street
Lancaster,PA 17601 Dillsburg,PA 17019 State College,PA 16803
P (717)653-1481•F (717)653-9174 P (717)432-9635•F (717)432-3674 P (814)237-2491•F (814)237-1201
lv.u2.�`ft
EXHIBIT " D"
, s
INVOICE
CLIENT House of PIZZ8
' DATE 311112013
nVolce 100
WEB: Duetater12a1a
GUNN
tttfs clL'3;>trlc� Ui ifs�.�.trar�r:[t
Bill:tat
Heritage Insurance Agent PAYMENT INFARMATI4N
ocust Street.
olunbia,FA 17512,. P E T $2,768.10
Thank You
�° D RlRTJAN, v ►1G141J1 :,
3xannual agency commercial:commission $2,768.10
for:
Houga of.Pizza Inc
$2,768.10
Dillsburg Lemoyne
Lancaster
State College 1 E Harrisburg Street 650 N 121'St.,Lemoyne,PA 17043
State South Atherton St Lancaster,PA 17601 205 Granite Run,Suite 210 Dillsburg,PA 17019 PO Box 900,Camp Hill,PA 17001
State College,PA 16801 P(717)432-9635 P(717)7614600
P(814)237-2491 P(717)735-5000 F(717)432-3674 F(717)761-6159
F(814)237-1201 F(717)735-1185
EXHIBIT " E "
Christopher A.Connolly
834 Hlllaire Road
Lancaster,PA 17601
Gunn Mowery,LLC
620 North Tweltlh Street
P.O. Box 900
Camp Hill,PA 17001
Attn:W. Greg Gunn
Re:Letter&'Invoice dated March 12,2013
Dear Greg,
I have received the above referenced correspondence,and wanted to respond with the following
positions:
1) •Due to the fact that I wasAerminated from my employment,the covenant you referenced is not
enforceable.Restrictive covenants are only intended to protect an employer's jegitimate
business interest Since I was terminated,Gunn Mowery has indicated'tl at my sales ability,and
services are not valuable,and.you should not need to protect your business from me and any
insurance sales-activities,:I.engage m. Iq attorney assures.me there is case law that supports
this position.
2) Generally speaking,courts do not favor restrictive covenants because they inhibit trade.
Attempting to impose a fee on an account that was not directly solicited(part of a non-accept)
can be interpreted as-an"unfair restraint of trade"that attempts to deprive a client of the ability
to choose a Broker they would otherwise want to do business with.
I believe both of these positions make your claim to any current or future payments void.
Thank you for your good wishes,and my best to all of you at Gunn Mowery..
Sincerel
Chris A. Connolly
i -
i
EXHIBIT " F "
Thomas A. French
ph(717)233-5731
RHOADS & SINON LLP � (71 @rhoads22
tfrench@rhoads-sinon.com
FILE NO: 12723/01
April 2, 2013
Re: Gunn Mowery, LLC
Mr. Christopher A. Connolly
834 Hillaire Road
Lancaster,PA 17601
Dear Mr. Connolly:
This firm represents your former employer, Gunn Mowery, LCC ("Gunn Mowery"). It
has come to Gunn Mowery's attention that you are engaging in conduct that, if proven, would be
unlawful and in violation of the terms of the Solicitor Agreement ("Agreement") you entered
into with Gunn Mowery on June 18, 2008. Said Agreement contains a Confidentiality & Non-
Piracy provision which, in part, states:
(a) Solicitor agrees and covenants that he shall not following the start of his
employment and for a period of three (3) years after termination of his
employment with [Gunn Mowery] for any reason, directly or indirectly,
solicit, service, accept or otherwise divert any insurance business of any
nature from any of the insurance accounts of[Gunn Mowery] nor directly
or indirectly assist or be employed by any other party in doing so.
Under paragraph 10(d), the Agreement provides that, should you solicit Gunn Mowery's
business, you shall be liable for damages measured by three (3) times the net annual
commissions earned by Gunn Mowery during the preceding twelve (12) months on such
business.
Gunn Mowery specifically has knowledge that you are now the broker for House of
Pizza, Inc. ("House of Pizza"). As you are aware, prior to your diversion, House of Pizza
maintained an insurance account with Gunn Mowery. Pursuant to the terms of the Agreement,
particularly paragraph 10(a), you had an obligation to refrain from soliciting this account.
Contrary to the assertions contained in your undated correspondence to Mr. Greg Gunn,
you are bound by the terms of the Agreement. Accordingly, you are hereby directed to cease and
desist from violating the Agreement, and unlawfully competing with Gunn Mowery. Further,
this letter shall serve to remind you that, by virtue of Pennsylvania law, you are not permitted to
One South Market Square, 12th Floor • P.O. Box 1146 • Harrisburg, PA 17108-1146 • ph: 717.233.5731
88!578•' www.rhoads-sinon.com
i
April 2,2013
Page 2
use any of Gunn Mowery's confidential or proprietary information and/or trade secrets in your
current or future work.
Enclosed is a copy of the invoice previously sent to you by Gunn Mowery for payment in
the amount of 3 times the annual agency commission for the House of Pizza, Inc. account.
Payment on this invoice is now overdue.
Please respond within ten (10) days from the date of this letter and confirm that, going
forward, you will honor the terms of your Agreement with Gunn Mowery, and remit payment of
the above invoice. If we do not hear from you, we will understand that you have chosen not to
honor this request. Should that occur, Gunn Mowery will be forced to seek legal intervention,
and will pursue injunctive relief in additional to all other available remedies. We trust that you
will not make this necessary.
Very truly yours,
RHOADS&SiNoN UP
By:
Thomas A. French
Enclosure
TAF/nr
INVOICE
CLIENT ] House of Pizza
DATE 3/11/2013
Invoice 100
U N N = Mm!�)' -JU/ Due Date 4/1/2013
Bilt to:
Heritage Insurance Agency PAYMENT INFORMATION
272 Locust Street
Columbia,. PA 17512 PAYMENT AMOUNT $2,768.10
Thank You
<DES.GRII?TIO.N ,_._. AMOUNT:-`
3x annual agency commercial commission $2,768.10
for:
House of Pizza Inc
-.TOTAL-
$2,768.10
.State College Lancaster Dillsburg Home Office
1500 South Atherton Street 205 Granite Run,Suite 210 1 E Harrisburg Street 650 N 12'h Street,Lemoyne,PA
State College,PA 16801 Lancaster,PA 17601 Dillsburg,PA 17019 17043
P(814)237-2491 P(717)735-5000 P(717)432-9635 PO Box 900,Camp Hill,PA 17001
F(814)237-1201 F(717)735-1185 F(717)432-3674 P(717)761-4600 (800)840-1243
www.gunnmowery.com www.gunnmowery.com www.gunnmowery.com F(717)761-6159
www.gunnmowery.com
Thomas A.French
ph(717)233-5731
RHOADS & SINON LLP tf (71 @23 tfrench@rhoads-sinon.com
rhoads-sinon.com
FILE NO: 12723/01
April 2, 2013
Re: Gunn Mowery,LLC
Nathan Bunty, Managing Partner
Heritage Insurance Agency
272 Locust Street
Columbia, PA 17512
Dear Mr. Bunty:
This firm represents Gunn Mowery, LCC.("Gunn Mowery"), your employee Christopher
Connolly's former employer.
As you may be aware, Mr. Connolly entered into a Solicitor Agreement ("Agreement")
with Gunn Mowery at the commencement of his employment. Contained in that Agreement is a
Confidentiality and Non-Piracy provision which prohibits Mr. Connolly from directly or
indirectly soliciting business from Gunn Mowery. That provision, in part, states:
(a) Solicitor agrees and covenants that he shall not following the start of his
employment and for a period of three (3) years after termination of his
employment with [Gunn Mowery] for any reason, directly or indirectly,
solicit, service, accept or otherwise divert any insurance business of any
nature from any of the insurance accounts of[Gunn Mowery] nor directly
or indirectly assist or be employed by any other party in doing so.
The Agreement provides that damages measured by three (3) times the net annual commissions
earned by Gunn Mowery during the preceding twelve (12) months, are available upon Mr.
Connolly's breach. Additionally, the Agreement contemplates damages in the event that a client
of Gunn Mowery's should seek out the services of Mr. Connolly, and other remedies including
injunctive relief.
Gunn Mowery specifically has knowledge that Mr. Connolly is now the broker for House
of Pizza, Inc:("House of Pizza"). Prior to Mr. Connolly's diversion, House.of Pizza maintained
an insurance account with Gunn Mowery. Pursuant to the terms of his Solicitor Agreement, Mr.
Connolly had an obligation to refrain from soliciting this or any other Gunn Mowery insurance
client.
One South Market Square, 12th Floor • P.O. Box 1146 • Harrisburg, PA 17108-1146 • ph: 717.233.5731
881580.1 www.rhoads-sinon.com
1 I
April 2, 2013
Page 2
Under Pennsylvania common law, you have an obligation to abstain from interfering with
the Agreement between Mr. Connolly and Gunn Mowery. You are requested to refrain from
assisting, inducing, or permitting, Mr. Connolly's breaches of this Agreement, or from accepting
the benefits of such breaches, in the form of insurance business, commissions or otherwise.
While Gunn Mowery desires to maintain a professional relationship with you, you should
understand that Gunn Mowery will take appropriate action to protect its contractual and common
law rights and will not hesitate to pursue all available legal and equitable remedies should it
become necessary to do so. Please respond within ten (10) days from the date of this letter and
confirm that, going forward, you will not induce, permit or ratify the actions of Mr. Connolly in
diverting business away from Gunn Mowery. If we do not hear from you, we will assume that
you have chosen not to honor this request and will respond accordingly.
Very truly yours,
RHOADS&SINON LP
By:
Thomas A. French
TAF/nr
EXHIBIT " G "
Thomas A.French,Esquire
Attorney I.D.No.39305
Nicole Radziewicz,Esquire
Attorney I.D.No.314061
Rhoads&Sinon LLP
One South Market Square
P.O.Box 1146
Harrisburg,PA 17108-1146
P: (717)233-5731
F: (717)238-8622
Email: tfrench @rhoads-sinon.com
nradziewicz @rhoads-sinon.com
Attorneys for Claimant
AMERICAN ARBITRATION ASSOCIATION
GUNK MOWERY, LLC,
Claimant
V. NO. .
CHRISTOPHER A. CONNOLLY,
Respondent
DEMAND FOR ARBITRATION
NOW COMES, Claimant Gunn Mowery, LLC ("Gunn Mowery"), by and through its
attorneys, Rhoads & Sinon, LLP, and files the within Demand for Arbitration with the American
Arbitration Association:
INTRODUCTION
1. Gunn Mowery brings this action seeking relief in the form of an injunction and
damages due to the actions of its former employee, Respondent Christopher A. Connolly ("Mr.
Connolly"), who is unlawfully soliciting Gunn Mowery's insurance accounts in derogation of his
Solicitor Agreement. The Respondent's actions in unjustly competing with the Claimant have
resulted in a loss of business relationships, lost revenue, and a continuing breach of contract,
requiring arbitration.
883106.1
PARTIES
2. Claimant Gunn Mowery is a limited liability company organized under the laws
of the Commonwealth of Pennsylvania, with a primary address of 650 North 12th Street,
Lemoyne, Pennsylvania 17043.
3. Gunn Mowery is a licensed insurance broker in the Commonwealth of
Pennsylvania that, in general, sells, solicits, and negotiates contracts of insurance for businesses
and individuals.
4. Respondent Christopher A. Connolly is an adult individual residing at 834
Hillaire Road, Lancaster, Pennsylvania 17601.
5. Mr. Connolly is a licensed resident insurance producer in the Commonwealth of
Pennsylvania with a license number of 341690. He is authorized to sell Accident and Health,
Casualty and Allied, Life and Fixed Annuities, and Property and Allied lines of insurance.
ARBITRATION PROVISION
6. Paragraph 11 of the Solicitor Agreement ("the Agreement') at issue addresses
dispute resolution and provides that controversies or claims thereunder are to be "submitted and
determined by arbitration in Cumberland County, Pennsylvania in accordance with applicable
rules in the American Arbitration Association." The Agreement goes on to state that the
arbitrator may award injunctive relief, in addition to other remedies, including damages. A true
and correct copy of the Solicitor Agreement is attached hereto as Exhibit "A" and incorporated
herein by reference.
-2 -
STATEMENT OF FACTS
7. Gunn Mowery is a Pennsylvania limited liability company engaged in the
business of providing insurance services to clients. Gunn Mowery has an office in Lemoyne,
Pennsylvania, among other places.
8. Gunn Mowery has been operating as an insurance broker in the community for
approximately thirty (30) years. At great expense and through persistent efforts, it has developed
a valuable book of business centered upon its client relationships.
9. Gunn Mowery takes great care to preserve its existing insurance accounts, and it
has entered into employment agreements containing restrictive covenants with employees as a
condition of employment.
10. Christopher A. Connolly became an employee of Gunn Mowery as part of Gunn
Mowery's acquisition of Community Banks Insurance Services ("CBIS"), whereby Gunn
Mowery acquired CBIS' book of insurance accounts and related assets.
11. Mr. Connolly's duties with Gunn Mowery included, managing client accounts,
advising clients, retaining clients and developing new client relationships. As a result of his
position, Mr. Connolly was entrusted by Gunn Mowery to foster relationships with valuable
insurance clients on behalf of Gunn Mowery.
12. On or about June 18, 2008, prior to the acquisition, and in consideration of
employment, Mr. Connolly entered into the Agreement that contained an initial three year term
of employment, followed by an extended term of at-will employment. The Agreement expressly
provides that the insurance and client accounts developed by or serviced by Connolly became the
property of Gunn Mowery as a function of the acquisition.
- 3 -
13. Contained in the Agreement was a Confidentiality & Non-Piracy provision ("the
Non-Piracy provision") coextensive with those contained in the employment agreements of all
other producers joining Gunn Mowery as part of the acquisition of CBIS.
14. The Non-Piracy provision was agreed upon to protect Gunn Mowery's legitimate
business interests in its existing customers. Mr. Connolly's agreement to abide by the provision
was a condition precedent to his employment with Gunn Mowery.
15. The Confidential & Non-Piracy provision, set forth in Paragraph 10 of the
Agreement, states that, "[i]n recognition of the fact that [Gunn Mowery] is engaged in a personal
service business involving personal relationships with its customers, the success of which
business is due to continuation of such personal relationships," Solicitor covenants and agrees:
"(a)... that he shall not following the start of his employment and for a period of three (3) years
of the termination of his employment with [Gunn Mowery] for any reason, directly or indirectly,
solicit, service, accept or otherwise divert any insurance business of any nature from any of the
insurance accounts of [Gunn Mowery] nor directly or indirectly assist or be employed by any
other party in doing so."
16. Paragraph 10(b) of the Agreement addresses the scenario in which Mr. Connolly
is sought out by existing clients, without any solicitation on his part. It provides he may accept
said business at his discretion, on the condition that he compensate the agency by paying
liquidated damages in the amount of "two (2) times the.first year's commission on any such
policies/ risks accepted by [him], within thirty (30) days after the effective dates of the policies
in question being written by [him] or transferred through an agent-of-record letter."
17. In the event of a breach of Paragraph 10, Paragraph 10(d) explicitly provides for
"an injunction restraining Solicitor from the commission of such breach to the full extent hereof,
-4-
or to such lesser extent as an arbitrator or court of competent jurisdiction may deem just and
proper for the reasonable protection of the rights and interests of[Gunn Mowery]," in addition to
other remedies, including damages for accounts lost valued at "three (3.0) times the net annual
commissions and/or fees earned by Agency during the preceding twelve (12)months."
18. In signing the Agreement, Mr. Connolly specifically acknowledged, in Paragraph
10(f), that a violation of Paragraph 10 "constitutes irreparable harm to [Gunn Mowery]."
19. Moreover, in Paragraph 10(f)(1)-(2), the Agreement specifically states that the
Non-Piracy provision was not meant by Gunn Mowery to unduly limit Mr. Connolly's
livelihood. Significantly, the Non-Piracy provision does not prohibit "employment in business
activities which are not in conflict with this section10 [sic]" -rather- it only limits his ability to
divert existing business. Mr. Connolly acknowledged that "the enforcement of a remedy [under
the Agreement] by way of injunction would not prevent him from earning a reasonable
livelihood."
20. In addition to the Confidential and Non-Piracy provision, Paragraph 9 of the
Agreement contains a Confidential Information provision that states that information about Gunn
Mowery's customers constitutes confidential information, and that the Solicitor agrees not to use
to his benefit,nor divulge said information.
21. Also, the Agreement contains Enforceability and Severability terms that preserve
the enforceability of the various provisions of the Agreement, including the Confidential &Non-
Piracy provision, despite the invalidity or unenforceability of any other provision of the
Agreement.
22. As noted herein supra, Paragraph 11 of the Agreement addresses dispute
resolution, and it provides that controversies or claims thereunder are to be "submitted and
- 5 -
determined by arbitration in Cumberland County, Pennsylvania in accordance with applicable
rules in the American Arbitration Association." The Agreement goes on to state that the
arbitrator may award injunctive relief, in addition to other remedies.
23. In regard to Mr. Connolly's work performance, Gunn Mowery's records reflect
that Mr. Connolly was a poor employee. There were a number of issues that arose with respect to
his improper handling of insurance applications (and paperwork generally), his inability to
generate new business, and his negative attitude towards his co-workers.
24. In particular, there was substantial concern that Mr. Connolly was engaged in
drinking while on company time due to complaints from other employees and from insured
clients, who reported erratic behavior and the strong odor of alcohol on his breath consistent with
the consumption of alcohol.
25. Resultantly, on or about November 17, 2011, after his initial three year term of
employment had expired, and at a time when Mr. Connolly was an at-will employee, a meeting
was held between partner Theodore Mowery and Mr. Connolly, at which time Mr. Connolly was
given notice of unsatisfactory performance and placed on probation.
26. During the meeting, Mr. Mowery specifically discussed with Mr. Connolly the
problems associated with his performance, including: his conduct in connection with certain
accounts, issues with his insurance and benefits, his attitude, and concerns about drinking on the
job.
27. During the meeting, Mr. Connolly was provided with a formal notice of
unsatisfactory performance ("the Notice"), which set forth the terms of his probation. Both he
and Mr. Mowery signed the Notice. A copy of Notice is attached hereto as Exhibit `B" and it is
incorporated herein by reference.
- 6 -
i
28. The Notice set forth various criteria that Mr. Connolly was required to satisfy in
order to retain his job. The Notice expressly states that termination would result if the criteria
were not met.
29. The criteria, inter alia, required Mr. Connolly to provide Mr. Mowery with a
weekly report "...on the weeks' activities in service and sales in all lines of production
[identifying] any service or claim issues you handled or were part of by the end of the day each
Friday." He was mandated to arrange an appointment approximately thirty days into the
probation period with Mr. Mowery to discuss Mr. Connolly's "remedial plan," which included
"how to increase trust from co-workers" and his plans to increase production. He was also
informed of the complaints against him regarding drinking on the job, and was notified that such
conduct would not be tolerated.
30. Mr. Connolly failed to meet the criteria outlined in the Notice. Specifically, he
failed to provide timely reports, he failed to arrange the required meeting with Mr. Mowery, and
he had ongoing service issues. Moreover, there were continuing reports that he still appeared to
be drinking while at work. Consequently, pursuant to the Notice, Mr. Connolly was terminated
on January 11, 2012.
31. Sometime following termination from Gunn Mowery, Mr. Connolly secured a
position as an employee or independent insurance producer for Heritage Insurance Agency,
located at 272 Locust Street, Columbia, Pennsylvania 17512.
32. Recently, Gunn Mowery learned that one of its accounts previously serviced by
Mr. Connolly, House of Pizza, Inc., retained Heritage Insurance Agency as its broker, and that
Mr. Connolly is currently working as the individual insurance producer on the account, in
violation of the Non-Piracy provision contained in Paragraph 10 of his Solicitor Agreement.
- 7 -
Further, on information and belief, Mr. Connolly has solicited business from other Gunn
Mowery customers, including Warwick Machine Shop and Hummer's Meats.
33. Accordingly, by letter dated March 12, 2013, the managing partner of Gunn
Mowery, Mr. Greg Gunn, notified Mr. Connolly that he was in breach of the Non-Piracy
provision of his Solicitor Agreement. A true and correct copy of letter is attached hereto as
Exhibit"C"and it is incorporated herein by reference.
34. The letter enclosed an invoice for $2,768.10, which was equal to liquidated
damages in relation to the lost account valued at three (3) times the net annual commissions
earned by Gunn Mowery during the preceding twelve (12) months, pursuant to Paragraph 10(d)
of the Agreement. A true and correct copy of invoice is attached hereto as Exhibit "D" and it is
incorporated herein by reference.
35. Mr. Connolly responded to Gunn Mowery's March 12, 2013 letter through an
undated correspondence, later in March. In this correspondence, Mr. Connolly stated that"[d]ue
to the fact that I was terminated from my employment, the covenant ...referenced is not
enforceable." A true and correct copy of the undated correspondence from Mr. Connolly is
attached hereto as Exhibit`B" and it is incorporated herein by reference.
36. Contrary to Mr. Connolly's conclusions of law, he is bound by the Solicitor
Agreement he entered into with Gunn Mowery, and the Non-Piracy provision contained therein.
Mr. Connolly received valuable consideration in exchange for his covenants, in the form of an
initial three year term of employment followed by ongoing at-will employment, in addition to
other benefits and training. Furthermore, "[i]t is clear that a restrictive covenant can be enforced
even if an employee is terminated by an employer." Shepherd v. Pittsburgh Glass Works, LLC,
25 A.3d 1233, 1246 (Pa. Super. Ct. 2011).
- 8 -
37. In response to Mr. Connolly's undated correspondence, Gunn Mowery's counsel
sent Mr. Connolly and Heritage Insurance formal cease and desist letters. Gunn Mowery's
counsel advised Mr. Connolly that legal action would be instituted against him if he did not
abide by the terms of his Solicitor Agreement and stop soliciting Gunn Mowery's clients.
Counsel further reasserted Gunn Mowery's rights to injunctive relief as contemplated by the
Solicitor Agreement. Copies of the Cease and Desist Letters are attached hereto as Exhibit"F."
38. The cease and desist letter furnished to Mr. Connolly stated that if he failed to
confirm, within ten (10) days of receipt of the letter, that he would honor the terms of the
Agreement going forward, legal action would be commenced and an injunction and/or damages
would be sought. Mr. Connolly,to date, has failed to respond to the letter.
39. As a result of Mr. Connolly's actions in breaching his Solicitor Agreement, Gunn
Mowery has lost a valuable business account, which it took active steps to protect from
diversion. Further, Mr. Connolly has stated and demonstrated through his actions that he intends
to continue to solicit Gunn Mowery clients in breach of the Solicitor Agreement, causing
continuing harm and damages to Gunn Mowery.
40. Pursuant to the Solicitor Agreement, Gunn Mowery files this Demand for
Arbitration before the AAA seeking injunctive relief and damages as permitted by the Solicitor
Agreement.
COUNT I-BREACH OF CONTRACT
41. The averments contained in Paragraphs 1-40 above are incorporated by reference
as if set forth more fully herein.
42. Gunn Mowery and Christopher Connolly entered into a binding and enforceable
Solicitor Agreement on June 18, 2008.
- 9 -
J
43. Christopher Connolly's employment with Gunn Mowery was contingent upon,
and in consideration of, execution of the Solicitor Agreement.
44. The Non-Piracy provision contained in Paragraph 10 of the Solicitor Agreement
is clear and unambiguous in its terms prohibiting Mr. Connolly from soliciting Gunn Mowery's
existing insurance accounts for a period of three years post-employment.
45. The Respondent understood and accepted said terms of the Agreement, in
consideration of employment, as evidenced by his signing of the same on June 18, 2008.
46. Mr. Connolly violated the Non-Piracy provision by servicing one of Gunn
Mowery's accounts, namely House of Pizza, Inc., within three years of his termination (he was
terminated on 1/11/12, and as of 3/12/13 he was acting as the insurance producer for House of
Pizza, Inc.).
47. The restrictions set forth in Paragraph 10 of the Solicitor Agreement are
enforceable.
48. The Respondent has violated and materially breached the terms of his Solicitor
Agreement through diverting one of Gunn Mowery's accounts within three years of his
termination.
49. Further, Defendant has anticipatorily breach the Solicitor Agreement by refusing
to cease and desist soliciting Gunn Mowery's clients and in stating that the Solicitor Agreement
is "unenforceable," thereby expressing his intention to continue to solicit and accept business
from Gunn Mowery clients and to refuse to pay liquidated damages to Gunn Mowery, all in
breach of the Solicitor Agreement.
- 10 -
50. The Respondent has caused injury to the Claimant in diverting its business and
the Claimant is entitled to damages as set forth in Paragraph 10 of the Solicitor Agreement,
and/or equitable relief in the form of an injunction.
RELIEF REQUESTED
Gunn Mowery respectfully requests an award issuing the following relief:
a. That the AAA simultaneously send each party a list of proposed
arbitrators drawn from its National Roster in accordance with the Commercial Rules and
Mediation Procedures;
b. The scheduling of an Administrative Conference to address mediation,
discovery, a timetable for hearings, and any other pertinent administrative matters;
C. An injunction enjoining Christopher A. Connolly from breaching the Non-
Piracy provision contained in the Solicitor Agreement, specifically prohibiting him from
directly or indirectly soliciting Gunn Mowery's clients, until the end of three years post
the date of his termination(1/11/12-1/11-15);
d. Judgment in Gunn Mowery's favor in the amount of$2,768.10, together with
interest and costs, including reasonable attorney's fees pursuant to Paragraph 10 of the
Solicitor Agreement, and for all additional actual or liquidated damages resulting from all
of Mr. Connolly's solicitation or acceptance or business from Gunn Mowery clients up
until time of trial, including all such business which he caused or assented in causing to
be written through any broker.
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s ,
e
REQUESTED HEARING LOCATION
Pursuant to the "Dispute Resolution" Paragraph of the Agreement, Gunn Mowery
respectfully requests that the arbitration be held in Lemoyne, Pennsylvania, a location within
Cumberland County.
Respectfully submitted,
RHOADS & SINON LLP
By:
Thomas A. French
Nicole Radziewicz
One South Market Square, 12th Floor
P.O. Box 1146
Harrisburg,PA 17108-1146
(717)233-5731
Attorneys for Claimant Gunn Mowery, LLC
- 12 -
e
3
A
THE EXHIBITS HAVE BEEN OMITTED
IN THIS DEMAND FOR ARBITRATION
AS THEY ARE THE SAME
AS EXHIBITS "A" THROUGH "F"
IN THE COMPLAINT
Thomas A.French,Esquire THE A R0 p flO -
Attorney I.D.No.39305 ,Rt � t0 TA R i
Nicole Radziewicz,Esquire zl f91�}
Attorney I.D.No.314061 1, �Q: QQ
Rhoads&Sinon LLP
One South Market Square P� � A ND CC UjU T ,
P.O.Box 1146 $Y��A � 1
Harrisburg,PA 17108-1146
P: (717)233-5731
F: (717)238-8622
Email: tfrench @rhoads-sinon.com
nradziewicz@rhoads-sinon.com
Attorneys for Plaintiff
GUNN MOWERY, LLC, IN THE COURT OF COMMON PLEAS,
OF CUMBERLAND COUNTY
Plaintiff
CIVIL ACTION-EQUITY
V. n
CHRISTOPHER A. CONNOLLY NO.
Defendant
MOTION FOR
FOR PRELIMINARY OR SPECIAL INJUNCTION
NOW COMES, Plaintiff Gunn Mowery LLC ("Gunn Mowery"), by and through its
attorneys, Rhoads & Sinon LLP, and files the within Motion For Preliminary or Special
Injunction:
1. Movant Gunn Mowery is a limited liability company organized under the laws of
the Commonwealth of Pennsylvania, with a primary address of 650 North 12th Street, Lemoyne,
Pennsylvania 17043.
2. Gunn- Mowery has been operating as an insurance broker in the community for
approximately thirty (30) years. At great expense and through persistent efforts, it has developed
a book of business centered upon its valuable client relationships.
883102.1
3. Gunn Mowery takes great care to preserve its existing insurance accounts, for
example, by entering into Solicitor Agreements containing Non-Piracy provisions with
employees as a condition of employment.
4. The need for Non-Piracy provisions is crucial given the highly competitive nature
of the insurance services industry.
5. Gunn Mowery has brought the present action for immediate and preliminary relief
based upon its legal right to protect its valuable and legitimate business interest in its clientele.
6. Specifically, Gunn Mowery brings this action seeking preliminary injunctive
relief to enjoin its former employee, Defendant Christopher A. Connolly ("Mr. Connolly"), from
unlawfully diverting Gunn Mowery's insurance accounts in derogation of his Solicitor
Agreement, pending a final arbitration award. The Defendant's actions in unjustly competing
with the Plaintiff have resulted in irreparable harm in the form of harm to Plaintiffs business
relationships, which harm is substantial, and a continuing breach of contract, requiring the
intervention of equity.
7. Simultaneously.with the filing of this Motion, the Plaintiff filed a verified
Complaint seeking preliminary injunctive relief against Defendant, which Complaint is
s
incorporated herein by reference.
8. As set forth more fully in the Complaint, Christopher A. Connolly became an
employee of Gunn Mowery as part of Gunn Mowery's acquisition of Community Banks
Insurance Services ("CBIS"), whereby Gunn Mowery acquired CBIS' book of insurance
accounts and related assets, in summer of 2008.
- 2 -
9. Mr. Connolly's duties with Gunn Mowery included: managing client accounts,
advising clients, retaining clients and developing new client relationships. Mr. Connolly was
entrusted by Gunn Mowery to foster its relationships with valuable insurance clients.
10. On or about June 18, 2008, prior to the acquisition, and in consideration of
employment, Mr. Connolly entered into a Solicitor Agreement ("the Agreement") that contained
an initial three year term of employment, followed by an extended term of at-will employment.
The Agreement expressly provides that the insurance and client accounts developed or serviced
by Mr. Connolly became the property of Gunn Mowery as a function of the acquisition. A true
and correct copy of the Agreement is Exhibit"A"to the Complaint.
11. Contained in the Agreement was a Confidentiality & Non-Piracy provision ("the
Non-Piracy provision") mirroring those contained in the employment agreements of all other
producers joining Gunn Mowery as part of the acquisition of CBIS.
12. The Non-Piracy provision was agreed upon to protect Gunn Mowe ry's legitimate
business interests in its existing customers. Mr. Connolly's agreement to abide by the provision
was a condition precedent to his employment with Gunn Mowery.
13. The Confidential & Non-Piracy provision, set forth in Paragraph 10 of the
Agreement, states that, [i]n recognition of the fact that [Gunn Mowery] is engaged in a personal
service business involving personal relationships with its customers, the success of which
business is due to continuation of such personal relationships," Solicitor covenants and agrees:
"(a)... that he shall not following the start of his employment and for a period of three (3) years
of the termination of his employment with [Gunn Mowery] for any reason, directly or indirectly,
solicit, service, accept or otherwise divert any insurance business of any nature from any of the
Ii
I
- 3 -
I
i
insurance accounts of [Gunn Mowery] nor directly or indirectly assist or be employed by any
other party in doing so."
14. In the event of a breach of Paragraph 10, Paragraph 10(d) explicitly provides for
"an injunction restraining Solicitor from the commission of such breach to the full extent hereof,
or to such lesser extent as an arbitrator or court of competent jurisdiction may deem just and
proper for the reasonable protection of the rights and interests of[Gunn Mowery]," in addition to
other remedies.
15. In signing the Agreement, Mr. Connolly specifically acknowledged, in Paragraph
10(f), that a violation of Paragraph 10 "constitutes irreparable harm to [Gunn Mowery]."
16. Moreover, in Paragraph 10(f)(1)-(2), the Agreement specifically states that the
Non-Piracy provision was not meant by Gunn Mowery to unduly limit Mr. Connolly's
livelihood. Significantly, the Non-Piracy provision does not prohibit "employment in business
activities which are not in conflict with this sectionl0 [sic]" -rather- it only limits his ability to
divert existing business. Mr. Connolly acknowledged that "the enforcement of a remedy [under
the Agreement] by way of injunction would not prevent him from earning a reasonable
livelihood."
17. Paragraph 11 of the Agreement addresses dispute resolution, and it provides that
controversies or claims thereunder are to be "submitted and determined by arbitration in
Cumberland County, Pennsylvania in accordance with applicable rules in the American
Arbitration Association." The Agreement goes on to state that the arbitrator may award
injunctive relief, in addition to other remedies. The Plaintiff invokes this Honorable Court's
jurisdiction for the limited purpose of obtaining a preliminary injunction pending a final
- 4 -
arbitration award.' See Am. Eutectic Welding Alloys Sales Co. v. Flynn, 161 A.2d 364, 367 (Pa.
1960) (affirming lower Court's issuance of a preliminary injunction pending the final outcome in
an AAA arbitration, reasoning that: "arbitration would become a `hollow formality' if parties
were able to irretrievably alter the status quo pending the outcome of the underlying dispute.").
18. In regard to Mr. Connolly's work performance, Gunn Mowery's records reflect
that Mr. Connolly was a poor employee. There were a number of issues that arose with respect to
his improper handling of insurance applications (and paperwork generally), his inability to
generate new business, and his negative attitude towards his co-workers. In particular, there was
substantial concern that Mr. Connolly was engaged in drinking while on company time due to
complaints from other employees and from insured clients who reported erratic behavior and the
strong odor of alcohol on his breath consistent with the consumption of alcohol.
19. Resultantly, on or about November 17, 2011, after his initial three year term of
employment had expired, and at a time when he was an at-will employee, a meeting was held
between partner Theodore Mowery and Mr. Connolly, at which time Mr. Connolly was placed
on probation due to his poor performance. During the meeting, Mr. Connolly was provided with
a formal written notice of unsatisfactory performance ("the Notice"), which set forth the terms of
his probation. A copy of Notice is Exhibit"B"to the Complaint.
20. The Notice set forth various criteria that Mr. Connolly was required to satisfy in
order to retain his job. The Notice expressly states that termination would result if the criteria
were not met.
21. The criteria, inter alia, required Mr. Connolly to provide Mr. Mowery with a
weekly report "...on the weeks' activities in service and sales in all lines of production
' A Demand for Arbitration is simultaneously being filed with the American Arbitration Association. A copy of the
Demand for Arbitration is attached to the Complaint as Exhibit"G."
- 5 -
[identifying] any service or claim issues you handled or were part of by the end of the day each
Friday." He was mandated to arrange an appointment approximately thirty days into the
probation period with Mr. Mowery to discuss Mr. Connolly's "remedial plan," which included
"how to increase trust from co-workers" and his plans to increase production. He was also
informed of the complaints against him regarding drinking on the job, and was notified that such
conduct would not be tolerated.
22. Mr. Connolly failed to meet the criteria outlined in the Notice. Specifically, he
failed to provide timely reports, he failed to arrange the required meeting with Mr. Mowery, and
he had ongoing service issues. Moreover, there were continuing reports that he was still appeared
to be drinking while at work. Consequently, pursuant to the Notice, Mr. Connolly was terminated
on January 11, 2012.
23. Sometime following termination from Gunn Mowery, Mr. Connolly secured a
position as an employee or independent insurance producer for Heritage Insurance Agency,
located at 272 Locust Street, Columbia, Pennsylvania 17512.
24. Recently, Gunn Mowery learned that one of its accounts previously serviced by
Mr. Connolly, House of Pizza, Inc., retained Heritage Insurance Agency as its broker, and that
Mr. Connolly is currently working as the individual insurance producer on the account, in
violation of the Non-Piracy provision contained in Paragraph 10 of his Solicitor Agreement.
Further, on information and belief, Mr. Connolly has solicited business from other Gunn
Mowery customers, including Warwick Machine Shop and Hummer's Meats.
25. In an attempt to resolve the matter amicably, on March 12, 2013, Mr. Greg Gunn,
managing partner of Gunn Mowery, wrote to Mr. Connolly advising him that his actions were in
- 6 -
violation of his Solicitor Agreement. A true and correct copy of the letter is Exhibits "C" to the
Complaint.
26. Mr. Connolly responded through an undated correspondence stating that the Non-
Piracy provision was unenforceable because he was terminated. A copy of the letter is Exhibit
"E"to the attached Complaint.
27. Contrary to Mr. Connolly's conclusions of law, he is bound by the Solicitor
Agreement he entered into with Gunn Mowery, and the Non-Piracy provision contained therein.
Mr. Connolly received valuable consideration in exchange for his covenants, in the form of an
initial three year term of employment followed by ongoing at-will employment, in addition to
other benefits and training. Furthermore, "[i]t is clear that a restrictive covenant can be enforced
even if an employee is terminated by an employer." Shepherd v. Pittsburgh Glass Works, LLC,
25 A.3d 1233, 1246 (Pa. Super. Ct. 2011).
28. In response to Mr. Connolly's anticipatory repudiation, Gunn Mowery's counsel
sent Mr. Connolly and Heritage Insurance formal cease and desist letters. Gunn Mowery's
counsel advised Mr. Connolly that legal action would be instituted against him if he did not
abide by the terms of his Solicitor Agreement, and stop soliciting House of Pizza and other Gunn
Mowery clients. Counsel further reasserted Gunn Mowery's rights to injunctive relief. Copies of
the Cease and Desist Letters are Exhibit"F"to the Complaint.
29. The cease and desist letter furnished to Mr. Connolly stated that if he failed to
confirm, within ten (l 0) days of receipt of the letter, that he would honor the terms of the
Agreement going forward, legal action would be commenced and an injunction would be sought.
Mr. Connolly,to date, has failed to respond to the letter.
- 7 -
30. As a result of Mr. Connolly's actions in breaching his Solicitor Agreement, Gunn
Mowery has lost a valuable business account, which it took active steps to protect from
diversion.
31. Mr. Connolly has stated and demonstrated through his words and actions that he
is not willing to comply with the clear and unambiguous Non-Piracy provision contained in the
Solicitor Agreement, and that he intends to cause continuing harm to Gunn Mowery's client
relationships. Consequently, judicial intervention is required to return the parties to the status
quo as it existed before Mr. Connolly's wrongdoing, and to protect against irreparable harm, and
additional damages.
32. Unless the Defendant is immediately enjoined from violating the Non-Piracy
provision, irreparable harm will continue to result through the ongoing damage to and loss of
business relationships. Plaintiff established valuable relationships with its customers over the
course of years. Mr. Connolly's unbridled and continued violations of the Solicitor Agreement
have resulted, and will result, in incalculable damage to Gunn Mowery's business due to the
interference with these relationships, constituting justification for equitable intervention. See
John G Bryant Co. Inc. v. Sling Testing & Repair, Inc., 471 Pa. 1, 9, 369 A.2d 1164, 1168
(1977) (affirming preliminary injunction, in non-compete context, where interest sought to be
protected was a customer relationship, which is an interest that is "clearly incapable of adequate
protection by monetary damages," and which warrants equitable relief).
33. In light of the brazen and damaging misconduct of Defendant in the present
matter, it is necessary, to avoid the possibility of further irreparable harm, to promptly issue a
Preliminary or Special Injunction against the Defendant prohibiting him from, among other
- 8 -
actions, continuing to divert the House of Pizza, Inc. account, as well as from continuing to
solicit Plaintiff s other clients, including Warwick Machine Shop and Hummer's Meats.
34. Greater harm will result if a preliminary injunction is not granted because Mr.
Connolly will be permitted to continue his actions in diverting Gunn Mowery's business, and,
specifically, because he will be able to further interfere with the House of Pizza, and other
accounts, in derogation of the Solicitor Agreement. If a preliminary injunction is granted, Mr.
Connolly will still be able practice his trade, and he may otherwise lawfully pursue his
livelihood, beyond House of Pizza, and Gunn Mowery's other insurance accounts.
35. Plaintiff requests that the Court issue a Preliminary Injunction. As demonstrated
by Plaintiff s Complaint, Plaintiff is likely to succeed on the merits of the dispute as he is subject
to a binding Solicitor Agreement, which: sets forth a reasonable, clear and unambiguous Non-
Piracy provision, is incident to his Solicitor agreement, and has been egregiously violated
through his actions in diverting one of Gunn Mowery's insurance accounts.
36. The injunction is reasonably suited to abate Defendants' misconduct and the
public interest will not be adversely affected by the issuance of the injunction.
37. Pursuant to Pennsylvania Rule of Civil Procedure 1531(b), Plaintiff must post a
bond in support of a motion for special injunctive relief. In the present matter, the proposed
Preliminary or Special Injunction will have no meaningful effect on Mr. Connolly's ability to
conduct business, it will merely prohibit Mr. Connolly from conducting business in a manner
that is clearly unlawful. Therefore, Plaintiff avers that a bond in the amount of $500.00 is
sufficient.
38. No other Judge of this Court has ruled upon any matter in this case.
- 9 -
WHEREFORE, Plaintiff respectfully requests a Preliminary or Special Injunction, after
expedited discovery and an evidentiary hearing, to remain in place until a Final Order is issued in
the arbitration proceedings before the American Arbitration Association between the parties,
prohibiting Defendant from the following:
(a) Soliciting, inducing, recruiting, encouraging, assisting, advising, or directing any of
Gunn Mowery's clients to cease doing business with Gunn Mowery and/or assisting or
participating in any way in the transfer of business from Gunn Mowery to Heritage Insurance
Agency, or any other agency or entity.
(b) Continuing to Solicit the House of Pizza, Inc. account;
(c)Violating the terms of the Solicitor Agreement,
together with other relief that this Honorable Court deems as appropriate.
Respectfully submitted,
RHOADS & SINOY LLP
By:
Thomas A. French
Nicole Radziewicz
One South Market Square, 12th Floor
P.O. Box 1146
Harrisburg, PA 17108-1 146
(717)233-5731
Attorneys for Plaintiff Gunn Mowery, LLC
- 10 -
VERIFICATION
Mr Gunn Mowery, LLC deposes and says, subject to the
penalties of 18 Pa. C.S. § 4904 relating to unsworn ,falsification to authorities, that he is
authorized to execute this Verification in his capacity as that the facts set
forth in the foregoing "Motion for Preliminary or Special. Injunction" are true and correct to the
best of his knowledge,information and belief.
Date: Ae�!, , . , 2013
i
1'
FILED-Orrl C.
Thomas A.French,Esquire i! l � i' ! I
Attorney I.D.No.39305
Nicole Radziewicz,Esquire 2013 APR 24 AM 10: 06
Attorney I.D.No.314061
Rhoads&Sinon LLP CUMBERLAND COUNTY
One South Market Square PENNSYLVANIA
P.O.Box 1146
Harrisburg,PA 17108-1146
P: (717)233-5731
F: (717)238-8622
Email: tfrench @rhoads-sinon.com
nradziewicz@rhoads-sinon.com
Attorneys for Plaintiff
GUNN MOWERY, LLC, IN THE COURT OF COMMON PLEAS,
OF CUMBERLAND COUNTY
Plaintiff
CIVIL ACTION-EQUITY '
V.
CHRISTOPHER A. CONNOLLY, NO.
Defendant
MOTION FOR EXPEDITED DISCOVERY
NOW COMES, Plaintiff Gunn Mowery LLC ("Gunn Mowery"), by and through its
attorneys, Rhoads & Sinon LLP, and files the within Motion For Expedited Discovery as
follows:
1. Plaintiff Gunn Mowery is simultaneously filing a verified Complaint against
Christopher A. Connolly ("Mr. Connolly") setting forth a prayer for injunctive relief in relation
to Mr. Connolly's breach of contract.
2. Plaintiff is also filing a Motion for Preliminary or Special Injunction against
Defendant Connolly.
Q
3. It is anticipated that this Honorable Court will schedule a preliminary injunction
hearing in the near future.
4. In order to prepare for the preliminary injunction hearing in this case, it is
necessary that certain discovery, by way of depositions and production of documents, be
scheduled and completed before the date of such hearing, including the deposition of the
Defendant.
5. It may also become necessary to serve third-party subpoenas duces tecum on
other individuals or entities in order to obtain testimony and documents which are critical to the
proper preparation of the Plaintiff s case, but which are outside of the Plaintiff's control.
6. To complete this discovery prior to the preliminary injunction hearing, the time
periods for producing documents and taking depositions provided for in the Pennsylvania Rules
of Civil Procedure should be shortened and expedited, as Plaintiff is irreparably harmed each day
that passes in light of Defendant's misconduct.
7. The information sought by Plaintiff is in the exclusive possession of Defendants
and third parties, and cannot be ascertained without discovery.
8. The prospect and severity of continuing irreparable harm to Plaintiff and the
interests of justice require that the time period for depositions and document production be
expedited by this Court.
9.. No other Judge of this Court has ruled upon any matter in this case.
- 2 -
i
WHEREFORE, Plaintiff respectfully requests an Order permitting it to conduct discovery
on an expedited basis, as may be necessary to complete discovery prior to the Preliminary
Injunction hearing, in the form of the Order attached.
Respectfully submitted,
RHOADS & S1NON LLP
By: /V 4:�—
Thomas A. French
Nicole Radziewicz
One South Market Square, 12th Floor
P.O. Box 1146
Harrisburg,PA 17108-1146
(717)233-5731
Attorneys for Plaintiff Gunn Mowery, LLC
- 3 -
GUNN MOWERY, LLC, IN THE COURT OF COMMON PLEAS,
OF CUMBERLAND COUNTY
Plaintiff
CIVIL ACTION-EQUITY
V.
CHRISTOPHER A. CONNOLLY, NO.
CV11
Defendant
RULE TO SHOW CAUSE
�
AND NOW this Z 11 day of AV, 1 2013, it is hereby ordered that a
rule is issued upon the Defendant to show cause why the Plaintiff is not entitled to the relief
requested in Plaintiffs' Motion for a Preliminary of Special Injunction. Tlhe
S bt4 �,lcutiina"
a„ ggA,er to the mntinn 14AIhin tan .nays @j -him. A evidentiary hearing on
9:SO"4
disputed issue of material fact shall be held on Z 2013, at .m. in
Courtroom (0 at the Cumberland County Courthouse. Notice of this order shall be provided
to all parties by the Plaintiffsf 4 w..7 s LwJ
'rhoinas A.Placey J.
Distribution:
common Pleas Judge
.iristopher A. Connolly, 834 Hillaire Road, Lancaster, Pennsylvania 17601
I.-Tsomas French, Esq., Nicole Radziewicz, Esq., Rhoads & Sinon LLP, One South Market
Square, P. O. Box 1146, Harrisburg, PA 17108-1146
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GUNN MOWERY, LLC,
Plaintiff 'q2,
v.
IN THE COURT OF COMMON PLEAS
OF THE NINTH JUDICIAL DISTRICT
CHRISTOPHER A. CONNOLLY,
Defendant 2013-02235 CIVIL TERM
IN RE: MOTION FOR EXPEDITED DISCOVERY
ORDER OF COURT
AND NOW, this 291h day of April 2013, upon review of Plaintiff's Motion for
Expedited Discovery, a Rule is issued upon Defendant to show cause, if any, why the
relief requested should not be granted.
PLAINTIFF shall effectuate service of this Rule upon Defendant. Proof of
service must be filed prior to the court entertaining a motion to make rule absolute.
RULE RETURNABLE fifteen (15) days from the date of service by Plaintiff.
BY THE COURT,
Thomas . Placey C.P.J.
Distribution:
✓C;hristopher A. Connolly
yYhomas French, Esq. � �^M
+J
Nicole Radziewicz, Esq.
)>" :X
GUNN MOWERY, LLC,
Plaintiff i >> „4ul ill,
ou
v.
IN THE COURT OF COMMON PLEAS
OF THE NINTH JUDICIAL DISTRICT
CHRISTOPHER A. CONNOLLY,
Defendant 2013-02235 CIVIL TERM
IN RE: RULE TO SHOW CAUSE
ORDER OF COURT
AND NOW, this 30th day of April 2013, upon electronic request for a continuance
on the hearing for the Rule to Show Cause by Defendant, and concurrence from
Plaintiff, the request is GRANTED. The hearing is rescheduled to 5 June 2013 at 11:00
a.m. in Courtroom No. 6 of the Cumberland County Courthouse, Carlisle,
Pennsylvania. In the interim period, the preliminary injunction remains in full force and
effect.
BY THE CO RT
41
r
Thomas A. Placey C.P.J.
Distribution:
/irk L. Wolgemuth, Esq. ,
• may, c
/Thomas French, Esq. J •,. \' 'a3 �" ""=
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A
I-10E
Thomas A.French,Esquire 1 t HE ill f HON0
Attorney I.D.No.39305Afi
Nicole Radziewicz,Esquire
2013 PMy - t
Attorney I.D.No.314061 J f ,j: 3 5
Rhoads&Sinon LLP C UMBERL A Np
One South Market Square VENN D COUNTY
P.O.Box 1146 S}r
Harrisburg,PA 17108-1146
P: (717)233-5731
F: (717)238-8622
Email: tfrench @rhoads-sinon.com
nradziewicz@rhoads-sinon.com
Attorneys for Plaintiff
GUNN MOWERY, LLC, : IN THE COURT OF COMMON PLEAS,
: OF CUMBERLAND COUNTY
Plaintiff
: CIVIL ACTION-EQUITY
v.
•
CHRISTOPHER A. CONNOLLY, : NO. 13-2235 Civil
Defendant •
PROOF OF SERVICE
As evidenced by the letter attached hereto as Exhibit "A" and incorporated herein by
reference, the "Rule to Show Cause" and "Order Granting Preliminary Injunction" was served
via U.S. Mail on April 26, 2013.
RHOADS & SINON LLP
By: .lam
somas A. French
Nicole Radziewicz
One South Market Square
P.O. Box 1146
Harrisburg, PA 17108-1146
(717) 233-5731
Attorneys for Plaintiff
884890.1
EXHIBIT "A"
Thomas A. French
ph(717)233-5731
RHOADS & SINON LLP fx (717)228-8622
tfrench@rhoads-sinon.com
FILE NO: 12723/01
April 26, 2013
Re: Gunn Mowery, LLC v. Christopher A. Connolly,In the Court of Common Pleas of
Cumberland County, Pennsylvania, Civil Action—Equity No. 13-2235 Civil
VIA Email: chriscon565@comcast.net
and U.S. Mail
Christopher A. Connolly
834 Hillaire Road
Lancaster, PA 17601
Dear Mr. Connolly:
Enclosed for service upon you please find a "Rule to Show Cause" and "Order Granting
Preliminary Injunction"regarding the above matter.
Please note the Court has scheduled a short preliminary evidentiary hearing on May 2,
2013 at 9:50 a.m. in Courtroom 6 of the Cumberland County Courthouse.
Very truly yours,
RHOADS&SINON LLP
By:
Thomas A. French
Enclosures
TAF/lgr
One South Market Square, 12th Floor • P.O. Box 1146 • Harrisburg, PA 17108-1146 • ph:717.233.5731
884885.1 www.rhoads-sinon.com
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CERTIFICATE OF SERVICE
I hereby certify that on April 30, 2013, a true and correct copy of the foregoing Proof of
Service was served by means of United States mail, first class mail, postage prepaid, upon the
following:
Christopher A. Connolly
834 Hillaire Road
Lancaster, PA 17601
Cf)41e---- ,
SHERIFF'S OFFICE OF CUMBERLAND COUNTY'-
Ronny R Anderson
Sheriff tFIL�Ej{D� -.OF(''����i(CE ,?
�HE PROTHONO tTFt1WY
Jody S Smith r
Chief Deputy, «" L 201 MAY -3 PM 2-* 07
Richard W Stewart CUMBERLAND COON f Y
Solicitor OP 5 f�t- cr}�cr�r;fitF;
PENNSYLVANIA
Gunn Mowery, LLC
Case Number
vs.
Christopher Connolly 2013-2235
SHERIFF'S RETURN OF SERVICE
04/24/2013 Sheriff Ronny R Anderson, being duly sworn according to law, states he made diligent search and inquiry
for the within named Defendant to wit: Christopher Connolly, but was unable to locate the Defendant in
the Sheriffs bailiwick. The Sheriff therefore deputizes the Sheriff of Lancaster, Pennsylvania to serve the
within Complaint in Equity according to law.
04/29/2013 03:04 PM -The requested Complaint in Equity served by the Sheriff of Lancaster County upon
Christopher Connolly, personally, at 834 Hillaire Road, Lancaster, PA 17601. Mark S. Reese, Sheriff,
Return of Service attached to and made part of the within record.
SHERIFF COST: $37.00 SO ANSWERS,
May 02, 2013 RbNW R ANDERSON, SHERIFF
(c)CountySuito Sheriff,Teleosoft,Inc.
SHERIFF'S OFFICE OF LANCASTER COUNTY
Mark S. Reese All
Brad Harris
Sheriff t r Solicitor
Charles Hamilton
Marc Lancaster ,
Chief Deputy Lieutenant
GUNN MOWERY, LLC
vs. Case Number
CHRISTOPHER CONNOLLY 2013-2235
SHERIFF'S RETURN OF SERVICE
04/29/2013 03:04 PM - SERVED THE COMPLAINT&NOTICE BY PERSONAL SERVICE UPON CHRISTOPHER
CONNOLLY AT 834 HILLAIRE ROAD, LANCASTER, PA 17601. SO ANSWERS: DEPUTY KERRY GEIB,
DEPUTY SHERIFF OF LANCASTER COUNTY, PA.
KERRY GEIB, DEPUTY
SHERIFF COST: $42.15 SO ANSWERS,
V- A
April 29, 2013 MAIkK S. REESE, SHERIFF
COSTS
DATE CATEGORY MEMO CHK# DEBIT CREDIT
04/26/2013 Advance Fee Advance Fee 11165 $0.00 $150.00
04/26/2013 Receiving,Docketing&Return $9.00 $0.00
04/26/2013 Service $9.00 $0.00
04/26/2013 Affidavit $2.50 $0.00
04/26/2013 Deputy Time $10.00 $0.00
04/26/2013 Copies $6.00 $0.00
04/29/2013 Service Mileage $5.65 $0.00
04/29/2013 Refund $107.85 $0.00
$150.00 $150.00
BALANCE: 1$0.00 1.Plaintiff Attorney. RHOADS&SINON LLP, 0'NE SOUTH MARKET SQUARE, P.Q. BOX 1146; HARRISBURG, PA 17108
(c)cou.ty.ui.e 51, rdf leleosot Inc.
Thomas A.French,Esquire ` �� t�o T ONO
Attorney I.D.No.39305 rCf T`
Nicole Radziewicz,Esquire 2013NAY
Attorney I.D.No.314061 7 PH 1: 43
Rhoads&Sinon LLP tt tt�r�
`DUI"i(j�R
0 0.Boxh146ket Square PENNS Y�AP to �,
Harrisburg,PA 17108-1146
P: (717)233-5731
F: (717)238-8622
Email: tfrench @rhoads-sinon.com
nradziewicz @rhoads-sinon.com
Attorneys for Plaintiff
GUNN MOWERY, LLC, IN THE COURT OF COMMON PLEAS,
OF CUMBERLAND COUNTY
Plaintiff
CIVIL ACTION-EQUITY
V.
CHRISTOPHER A. CONNOLLY, NO. 13-2235 Civil
Defendant
PROOF OF SERVICE
As evidenced by the letter attached hereto as Exhibit "A" and incorporated herein by
reference, the "Order Of Court" regarding Plaintiff's Motion for Expedited Discovery, was
served via U.S. Mail on May 3, 2013.
RHOA:a LP
By:
Thomas A. French
Nicole Radziewicz
One South Market Square
P.O. Box 1146
Harrisburg, PA 17108-1146
(717) 233-5731
Attorneys for Plaintiff
884890.2
EXHIBIT "A"
Thomas A.French
Ph(717) 31 fx (717)228-8622 RHOADS & S INO ZIP tfrench @rhoads-si
n
on.com
FII.E No: 12723/01
May 3, 2013
Re: Gunn Mowery,LLC v. Christopher A. Connolly,In the Court of Common Pleas of
Cumberland County, Pennsylvania, Civil Action—Equity No. 13-2235 Civil
VIA Email: chriscon565 @comcast.net
and U.S. Mail
Christopher A. Connolly
834 Hillaire Road
Lancaster, PA 17601
Dear Mr. Connolly:
We enclose for service upon you a copy of an Order of Court, dated April 29, 2013. We
have been contacted by Kirk Wolgemuth who indicated that he would be representing you.
However, Mr. Wolgemuth has not filed an entry of appearance with the court and consequently
we are making service of this Order upon you and Mr. Wolgemuth simultaneously by copy of
this letter.
Should you have any questions, I suggest that you contact Mr. Wolgemuth.
Very truly yours,
RHOADS&SINON LP
By:
/omas . French
Enclosure
cc: Kirk Wolgemuth, Esquire (w/encl) (via email: kwolgemuth @palawyersI com)
TAF/lgr
One South Market Square, 12th Floor • P.O. Box 1146 • Harrisburg, PA 17108-1146 • ph: 717.233.5731
884885.3 www.rhoads-sinon.com
i
RHOADS & SINON LLP , . U.S.POSTAGE?>PITNEY BOWES
{ One South Market Square, 12th Floor
P.O. Box 1146 r { ZIP 17101 000.s6°
Harrisburg, PA 17108-1146 +r
r'�� 02 1YV
000136618/MAY 03 2013
t
Christopher A. Connolly
834 Hillaire Road
j Lancaster, PA 17601
li
CERTIFICATE OF SERVICE
I hereby certify that on May 6, 2013, a true and correct copy of the foregoing Proof of
Service was served by means of United States mail, first class mail, postage prepaid, upon the
following:
Christopher A..Connolly
834 Hillaire Road
Lancaster, PA 17601
a
GUNN MOWERY, LLC, IN THE COURT OF COMMON PLEAS,
OF CUMBERLAND COUNTY
Plaintiff, Civil Action No. 13-2235
V. ,
M --
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CHRISTOPHER A. CONNOLLY, `-"D + -70`-
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Defendant 7-
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ENTRY OF APPEARANCE
Please enter the appearance of the undersigned on behalf of the Defendant.
Respectfully submitted,
Wolgemuth & Dunlap Law Offices
Date: May 8, 2013 By:
Kirk L. Wolgemuth, Esquire
Attorney ID #: 45792
Attorneys for Defendant
PO Box 10305
Lancaster, PA 17605
717 / 392-0389
koggemuth@palawyers1.com
CERTIFICATE OF SERVICE
I certify that a copy of the Entry of Appearance was served by U.S. Mail to the following
individual:
Thomas A. French, Esquire
Rhoads & Sinon, LLP
PO Box 1146
Harrisburg, PA 17108-1146
Dated: May 8, 2013
J
Kirk L. Wolgemuth, Esquire
GUNN MOWERY, LLC, IN THE COURT OF COMMON PLEAS,
OF CUMBERLAND COUNTY
Plaintiff, Civil Action No. 13-2235 w
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V. c�J)t' co r
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CHRISTOPHER A. CONNOLLY,: 3' �-
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Defendant
DEFENDANT'S RESPONSE TO PLAINTIFF'S
MOTION FOR PRELIMINARY INJUNCTION
Defendant Christopher Connolly responds to Plaintiff's Motion for a Preliminary
Injunction as follows:
1. Admitted.
2. Admitted in part and denied in part. It is admitted that Plaintiff has been in business for
thirty years. It is denied that its business is centered upon client relationships.
3. Admitted in part and denied in part. It is admitted that Plaintiff requires Solicitor
Agreements with Non-Piracy provisions. It is denied that Plaintiff is responsible for
obtaining its existing accounts. To the contrary, Plaintiff's accounts are generated by its
Solicitors.
4. Denied. The Defendant is without knowledge or information sufficient to form a response
to the allegations in Paragraph 4 and the same are therefore denied.
5. Admitted in part and denied in part. It is admitted that Plaintiff has filed this action. It is
denied that Plaintiff has legitimate business interests in the clients of Defendant. To the
contrary, the clients Defendant served are legitimate business interests of the Defendant.
6. Admitted in part and denied in part. It is admitted that Plaintiff has brought an action
seeking a preliminary injunction. It is denied that Defendant is unlawfully diverting
insurance accounts in violation of the Solicitor Agreement or that his conduct is causing
irreparable harm to the Plaintiff. To the contrary, the Solicitor Agreement provides for
liquidated damages for any alleged breach therefore irreparable harm is not present in this
matter.
7. Admitted.
8. Admitted.
9. Admitted. In further response thereto, the clients were clients of the Defendant.
10. Admitted.
11. Admitted.
12. Admitted in part and denied in part. It is admitted that Plaintiff required Defendant to
sign the Solicitor Agreement. It is denied that the Agreement protected existing
customers of the Plaintiff. To the contrary, the customers were existing clients-of the
Defendant.
13. Admitted that the Solicitor Agreement contains the provisions cited in Paragraph 13.
14. Admitted in part and denied in part. It is admitted that the Agreement contains the
language cited in Paragraph 10. It is denied that an injunction is appropriate because the
Agreement provides for liquidated damages for any alleged breach.
15. Admitted in part and denied in part. It is admitted that the Agreement contains this
language. It is denied as a matter of law that the actions of Defendant are causing
irreparable harm to the Plaintiff because the Agreement provides for liquidated damages
for any breach of the Agreement.
16. Admitted that the language cited in Paragraph 16 is in the Agreement. It is denied that
these provisions are not limiting his ability to earn a reasonable livelihood. To the
contrary,these provisions are limiting his ability to earn a reasonable livelihood.
17. Admitted.
18. Denied. It is specifically denied that the Defendant was a poor employee and had
performance issues. To the contrary, the Plaintiff was not a good employer as evidenced
by its inability to keep solicitors employed after the acquisition.
19. Admitted in part and denied in part. It is admitted that a meeting was held on November
17, 2011 and that Defendant was placed on probation. It is denied that Defendant was
performing unsatisfactory. To the contrary, the problems existed with management of the
Plaintiff.
20. Admitted.
21. Admitted.
22. Admitted in part and denied in part. It is admitted that Defendant was terminated on
January 11, 2012. It is denied that Defendant failed to meet the requirements of his
probation. To the contrary, he met the probationary terms.
23. Admitted.
24. Admitted in part and denied in part. It is admitted that the House of Pizza, Inc. sought the
services of Defendant because it was not satisfied with the services of the Plaintiff. It is
denied that providing such services violates the Non-Piracy provisions of the Agreement.
To the contrary, the Plaintiff terminated the employment of the Defendant thereby ending
any requirement to abide by the terms of the Agreement.
"r
25. Admitted that the Plaintiff wrote the letter. The remaining allegations are conclusions of
law to which no response is required.
26. Admitted.
27. Denied. The allegations in Paragraph 27 are conclusions of law to which no response is
required.
28. It is admitted that counsel sent a letter to the Defendant as stated. It is denied that
Defendant violated the terms of the Agreement. To the contrary, the Plaintiff terminated
the services of the Defendant and thereby terminated the provisions of the Agreement.
29. Admitted.
30. Denied.The allegations in Paragraph 30 contain conclusions of law to which no response
is required.
31. Denied. The allegations in Paragraph 31 contain conclusions of law to which no response
is required.
32. Denied. The allegations in Paragraph 32 contain conclusions of law to which no response
is required.
33. Denied. The allegations in Paragraph 33 contain conclusions of law to which no response
is required.
34. Denied. The allegations in Paragraph 34 contain conclusions of law to which no response
is required.
35. Denied. The allegations in Paragraph 35 contain conclusions of law to which no response
is required.
36. Denied. The allegations in Paragraph 36 contain conclusions of law to which no response
is required.
37. Denied. The allegations in Paragraph 30 contain conclusions of law to which no response
is required.
38. Admitted.
WHEREFORE, the Defendant requests that the Motion for a Preliminary Injunction be
denied.
Respectfully submitted,
Wolgemuth & Dunlap Law Offices
Date: May 10, 2013 By:
Kirk L. Wolgemuth, Esquire
Attorney ID #: 45792
Attorneys for Defendant
PO Box 10305
Lancaster, PA 17605
717 / 392-0389
kwolgemuth[D-palawyers 1.com
CERTIFICATE OF SERVICE
I certify that a copy of the Defendant's Response to the Motion for a Preliminary
Injunction was served by the U.S. Mail to the following individual:
Thomas A. French, Esquire
Rhoads & Sinon, LLP
PO Box 1146
Harrisburg, PA 17108-1146
Dated: May 13, 2013 AeA�.�
Kirk L. Wolgemuth, Esquire
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION—LAW
GUNN MOWERY, LLC,
c.r
No. 13-2235 rn W ,
Plaintiff
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V. „ — '
CHRISTOPHER CONNOLLY, °
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Y'T?
Defendant
NOTICE TO PLEAD
You are hereby notified to file a written response to the enclosed Answer with New
Matter and within twenty (20) days from service hereof or a judgment may be
entered against you.
WOLGEMUTH&DUNLAP
Law Offices
By:_
Kirk L. Wolgemuth, Esquire
Attorneys for Defendant,
ID #45792
P.O. Box 10305
Lancaster, PA 17605-0305
(717) 392-0389
GUNN MOWERY,LLC, IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY
Plaintiff, Civil Action No. 13-2235
V.
CHRISTOPHER A. CONNOLLY,
Defendant
DEFENDANT'S ANSWER WITH NEW MATTER TO THE COMPLAINT
The Defendant, Christopher A. Connolly, answers Plaintiff's Complaint as follows:
1. It is admitted that Plaintiff has filed this action seeking preliminary injunctive relief. It is
denied that Defendant has unlawfully diverted Plaintiff's accounts in violation of his
employment agreement. To the contrary, Defendant was terminated by the Plaintiff and
is not subject to the employment agreement.
2. Admitted.
3. Admitted.
4. Admitted.
5. Admitted.
6. Admitted.
7. Admitted.
8. Admitted.
9. Admitted in part and denied in part. It is admitted that the Plaintiff has been in business
for thirty years. It is denied that Plaintiff has developed a valuable book of business
centered upon client relationships. To the contrary, the book of business was developed
by employees such as the Defendant.
10. Admitted.
11. Admitted.
12. Admitted.
13. Admitted.
14. Admitted in part and denied in part. It is admitted that Defendant had to sign the
Agreement to obtain employment. It is denied that the Agreement protected legitimate
business interests of the Plaintiff. To the contrary, the customers purchased by,the
Plaintiff were customers of the Defendant.
15. Admitted that the language cited is Paragraph 15 is contained in the Agreement.
However, it is denied that the Agreement is enforceable because the Plaintiff terminated
the Defendant from employment.
16. Admitted. However, the Agreement is not enforceable because the Plaintiff terminated
the employment of Defendant.
17. Admitted. However, the Agreement is not enforceable because the Plaintiff terminated
the employment of Defendant.
18. Admitted that Paragraph 10 of the Agreement has that statement. However, it is denied
that Defendant's actions have caused irreparable harm to the Plaintiff. The fact that the
Agreement specifies liquidated damages to be paid is proof that the damages are not
irreparable.
19. Admitted that the Agreement has the language cited in paragraph 19 of the Complaint. It
is denied that the Agreement is enforceable because the Plaintiff terminated the
employment of Defendant. To the contrary, the Agreement is not enforceable.
20. Admitted that the Agreement has the language cited in paragraph 20 of the Complaint. It
is denied that the Agreement is enforceable because the Plaintiff terminated the
employment of Defendant. To the contrary, the Agreement.is not enforceable.
21. Admitted.
22. Admitted. However, the Agreement specifies the appropriate liquidated damages to be
paid which is proof that the damages are not irreparable.
23. Denied. It is denied the Defendant's work performance was poor. 'To the contrary, his
work performance was satisfactory.
24. Denied. It is denied that the Defendant consumed alcohol while working. To the
contrary, he did not consume alcohol while working.
25. Admitted.
26. Admitted that a meeting was held. It is denied that Defendant had work performance
issues. To the contrary, his work performance was satisfactory.
27. Admitted.
28. Admitted.
29. Admitted.
30. Admitted in part and denied in part. It is admitted that Defendant's employment was
terminated on January 11, 2012. It is denied that Defendant failed to satisfy the terms of
the probationary period. To the contrary, the Defendant satisfied the terms of the
probationary period.
31. Admitted.
32. Admitted in part and denied in part. It is admitted that House of Pizza, Inc. sought out the
services of Defendant because it was not satisfied with the service of Plaintiff. It is
denied that Defendant's relationship with House of Pizza, Inc. violates the Agreement.
The Agreement is not enforceable because the Plaintiff terminated the employment of
Defendant.
33. Admitted that Plaintiff sent the letter to Defendant. It is denied that the Agreement is
enforceable because the Plaintiff terminated the employment of Defendant.
34. Admitted in part and denied in part. It is admitted that an invoice was sent. It is denied
that the invoice is accurate or the provision enforceable. To the contrary, the Agreement
is not enforceable because Plaintiff terminated the employment of Defendant.
35. Admitted.
36. Denied. It is denied that the Agreement is enforceable. To the contrary, the Agreement
is not enforceable because Plaintiff terminated the employment of Defendant.
37. Admitted that counsel sent correspondence to the Defendant.
38. Admitted.
39. Admitted in part and denied in part. It is admitted that the Defendant does not intend to
honor the provisions of the Agreement because the Agreement is not enforceable because
Plaintiff terminated the employment of Defendant.
40. Admitted.
41. Defendant incorporated its responses to Paragraphs 1-40 as if set forth herein.
42. Denied. The allegations in Paragraph 42 are conclusions of law to which no response is
required.
43. Denied. . The allegations in Paragraph 43 are conclusions of law to which no response is
required.
44. Admitted. However, the Agreement is not enforceable.
45. Denied. The allegations in Paragraph 45 are conclusions of law to which no response is
required.
46. Denied. The allegations in Paragraph 46 are conclusions of law to which no response is
required.
47. Denied. The allegations in Paragraph 47 are conclusions of law to which no response is
required.
48. Denied. The allegations in Paragraph 48 are conclusions of law to which no response is
required.
49. Denied. The allegations in Paragraph 49 are conclusions of law to which no response is
required. In further response thereto, the Agreement provides for liquidated damages
therefore the harm, if any, is not irreparable.
50. Denied. The allegations in Paragraph 50 are conclusions of law,to which no response is
required.
51. Denied. The allegations in Paragraph 51 are conclusions of law to which no response is
required.
52. Denied. The allegations in Paragraph 52 are conclusions of law to which no response is
required.
53. Denied. The allegations in Paragraph 53 are conclusions of law to which no response is
required.
Wherefore, the Defendant requests that the Court deny Plaintiff's Complaint for
Injunctive relief.
NEW MATTER
1. The Agreement is not enforceable because Plaintiff terminated the employment of the
Defendant.
2. If Plaintiff is not able to service his customers he will not be able to provide a living
to himself and his family.
3. Greater harm will result to the Defendant if an injunction is granted than would occur
to the Plaintiff if the injunction is denied.
4. Granting an injunction is not in the public's interest where, as here, the Defendant's
employment was terminated by the Plaintiff.
5. The Plaintiff will not suffer irreparable harm as the Agreement provides for liquidated
damages.
6. Granting an injunction is not in the interests of Plaintiff's customers who are unhappy
with the service provided by the Plaintiff.
WHEREFORE, the Defendant requests that the Plaintiff's Complaint for Injunctive
Relief be dismissed.
Respectfully submitted,
Wolgemuth & Dunlap
Date: May 13 , 2013 By: "
Kirk L. Wolgemuth, Esquire
Attorney ID #: 45792
Attorneys for Defendant
PO Box 10305
Lancaster, PA 17605
717 / 392-0389
kwolgemuth _,palawyers1.com
1, Christopher Connolly, verify that the facts set forth in this Answer to the Complaint are
true and correct. I understand that false statements herein are made subject to the
penalties of 18 Pa. C. S.A. Section 4904 relating to unsworn falsification to authorities.
Date: May 2013 --- ------ -----------------------
Christopher Connolly
CERTIFICATE OF SERVICE
I certify that a copy of the Defendant's Answer with New Matter to the Complaint was
served by the U.S. Mail to the following individual:
Thomas A. French, Esquire
Rhoads & Sinon, LLP
PO Box 1146
Harrisburg, PA 17108-1146
Dated: May , 2013
Kirk L. Wolgemuth, Esquire
C6
GUNK MOWERY, LLC, IN THE COURT OF COMMON PLEAS,
OF CUMBERLAND COUNTY
Plaintiff
CIVIL ACTION-EQUITY
V.
NO. 13-2235 Civil
CHRISTOPHER A. CONNOLLY,
Defendant
STIPULATED ORDER FOR PERMANENT INJUNCTION
NOW COME, Plaintiff, Gunn Mowery, LLC, and Defendant, Christopher A. Connolly,
by their respective attorneys, and stipulate to the entry of the following as an order of court.
1. Christopher A. Connolly is hereby permanently enjoined, until January 11, 2015,
from directly or indirectly, soliciting, servicing, accepting or otherwise diverting any insurance
business of any nature from any of the insurance accounts of Gunn Mowery, LLC and from
directly or indirectly assisting or being employed by any other party engaged in doing so, subject
to the provisions of Paragraph 10(b) of the Solicitors Agreement dated June 18, 2008, that is the
subject of the above captioned litigation, and existing law in Pennsylvania. Christopher A
Connolly is further enjoined from otherwise violating the terms of the Gunn Mowery
LLC/Connolly Solicitor Agreement.
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887249.1 F\1 "y
2. The bond posted by plaintiff in the amount of$500 is hereby dissolved and the
amount of the bond is released and ordered to be returned to the Plaintiff, Gunn Mowery, LLC.
RHOADS & SINON LLP WOLGEMUTH & DUNLAP
By: By:
Thomas A. French Kir Wolgemuth
Nicole Radziewicz P.O. Box 10305
One South Market Square Lancaster, PA 17605-0305
P.O. Box 1146 (717) 392-0389
Harrisburg, PA 17108-1146 Attorneys for Defendant
(717)233-5731
Attorneys for Plaintiff
# ,
Entered as an Order of Court this day of May, 2013.
BYE' O RT: .
Thomas AV la key, C.P.J. 4
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