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Guy Carp forced to take case across the pond


July 13, 2007   by Canadian Underwriter


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The UKs Court of Appeal handed down judgement that three former Guy Carpenter executives who defected to competitor Integro must be sued in the UK, where they live and work, not in New York, where Guy Carps parent company is based, says a statement from the firm representing the accused, Elborne Mitchell.
Guy Carpenter, a reinsurance unit of Marsh & MacLennan Cos., sued the three former employees who resigned from its global and UK facultative reinsurance business units for allegedly violating their contractual obligations, the statement says.
That suit, filed in New York federal court, also accused the trio of poaching numerous Guy Carp employees for Integro, A.M. Best reports.
But in the European Union, employees can only be sued by their employers in their home state, and faced with the trans-Atlantic tug-of-war, the Court of Appeal said:
A multinational business must expect to be subject to the employment laws applicable to those they employ in different jurisdictions.
Kate Payne, a partner in Elborne Mitchell, said the Court of Appeal took a commonsense view about the bonus arrangements.
She added that, the case has important ramifications for the big international insurance broking groups and financial institutions based in the United States with London operations.


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