Holland Ins. Grp. LLC v. Senior Life Ins. Co.

The restrictive covenant in the parties' now-terminated agency agreement was unreasonable and unenforceable because it penalized the plaintiff for accepting unsolicited business from the defendant's former clients, regardless of who initiated the contact.

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William Holland and Senior Life Insurance Company “Senior Life” entered into an agreement “Agreement” authorizing Holland to sell Senior Life’s insurance products as an independent agent. Senior Life subsequently terminated the Agreement and notified Holland that it “suspended” payment of commissions to Holland pending an investigation of whether Holland had violated restrictive covenants contained in the Agreement. Holland then filed a complaint against Senior Life seeking injunctive relief and a declaratory judgment that the Agreement’s restrictive covenants are overbroad and thus, unenforceable.1 Holland filed a motion for judgment on the pleadings, which the trial court denied. Senior Life then filed an amended counterclaim seeking enforcement of the forfeiture provisions of the agreement based on Holland’s alleged violation of restrictive covenants. Senior Life then sought a preliminary injunction for the return of all confidential documents, including completed insurance applications and “Leads” information regarding prospective clients. Senior Life also sought to enjoin Holland and his sub-agents from using and distributing such information after the termination of the Agreement. The trial court granted that motion. Holland appeals from both of the trial court’s

rulings.2 For the reasons below, we affirm in part and reverse in part.

Holland Ins. Grp. LLC v. Senior Life Ins. Co.

The restrictive covenant in the parties' now-terminated agency agreement was unreasonable and unenforceable because it penalized the plaintiff for accepting unsolicited business from the defendant's former clients, regardless of who initiated the contact.

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