Court Partially Denies Summary Judgment in Trade Secrets Case

Ruling involves insurance producer who violated restrictive covenants by taking client data to new employer

Mar. 31, 2026 at 2:21pm

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A photorealistic studio still life featuring a laptop, pen, and legal documents arranged elegantly on a clean, monochromatic background, conceptually representing the abstract corporate strategy and legal battles over trade secrets.A legal dispute over the use of proprietary client data highlights the ongoing tensions between employers and former employees in the insurance industry.NYC Today

A New York federal district court granted partial summary judgment to an insurance brokerage firm in a case involving an insurance producer who photographed client information before resigning and used it to solicit clients for his new employer, violating restrictive covenants. The court denied both parties' motions on misappropriation of trade secrets claims.

Why it matters

This case highlights the ongoing legal battles between employers and former employees over the use of proprietary client data and trade secrets, which can have significant financial implications for businesses.

The details

The Hilb Group of New York sued the insurance producer for breach of contract, breach of duty of loyalty, misappropriation of trade secrets, and tortious interference. The court granted Hilb's motion on the breach of contract and breach of duty of loyalty claims, but denied both parties' motions on the trade secrets claims under federal and state law.

  • The incident occurred in March 2026 when the insurance producer resigned from Hilb.

The players

The Hilb Group of New York

An insurance brokerage firm that sued a former employee for violating restrictive covenants and misappropriating trade secrets.

The insurance producer

A former employee of Hilb who photographed client information before resigning and used it to solicit clients for his new employer, violating restrictive covenants.

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What’s next

The court will now proceed to trial on the remaining trade secrets claims.

The takeaway

This case underscores the importance for employers to have robust non-compete and non-solicitation agreements in place, as well as effective measures to protect their proprietary client data and trade secrets.