Tag Archives: insurance companies

Illinois Appellate Court Holds That Only Material Breaches Justify Nonperformance of Restrictive Covenants

Addressing an argument frequently encountered in restrictive covenant litigation, an Illinois Appellate Court recently reiterated that only a material breach of a contract containing a restrictive covenant will relieve the other party of its contractual obligation to abide by the restrictive covenant.

In the case InsureOne Indep. Ins. Agency v. Hallberg, the plaintiffs purchased assets of several insurance companies owned or controlled by James Hallberg, and subsequently hired Hallberg to become the company’s new president. Hallberg’s employment agreement – as well as the Asset Purchase Agreement (APA) that governed the original sale of assets – contained noncompetition and nonsolicitation clauses. The APA also contained details for computation and payment of the contingent purchase price, which was a portion of the overall purchase price based on renewal business from Hallberg’s former entities.

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Some communications between insurance companies and counsel for insureds are now privileged in Ohio

Many employers today rely on employment practices liability insurance to cover potential employment claims and risks. As a result, insurance policies and companies that provide them hold an important place in many employment-related lawsuits, and rightfully so.

Historically, insurance companies, insureds and counsel have communicated carefully about potential claims, litigation strategies, and other confidential subjects because it was not clear whether the attorney-client privilege protected communication with the insurance companies.  Instead, the privilege arguably applied only to communications between the attorney and the insured/client.

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