Landa v. Aon Corporation Excess Benefit Plan

CourtDistrict Court, S.D. Florida
DecidedSeptember 30, 2024
Docket1:23-cv-22713
StatusUnknown

This text of Landa v. Aon Corporation Excess Benefit Plan (Landa v. Aon Corporation Excess Benefit Plan) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Landa v. Aon Corporation Excess Benefit Plan, (S.D. Fla. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 23-22713-CV-WILLIAMS

MICHAEL LANDA,

Plaintiff,

v.

AON CORPORATION EXCESS BENEFIT PLAN, AS AMENDED AND RESTATED AS OF JANUARY 1, 2009,

Defendant. /

ORDER THIS MATTER is before the Court on the Motion for Summary Judgment (DE 36) (“Motion”) filed by Defendant Aon Corporation Excess Benefit Plan (“Defendant”) to which Plaintiff Michael Landa (“Landa” or “Plaintiff”) filed a Response (DE 46), and Defendant filed a Reply (DE 53); and the Cross-Motion for Summary Judgment (DE 38) (“Cross-Motion”) filed by Plaintiff to which Defendant filed a Response (DE 48) and Plaintiff filed a Reply (DE 53).1 For the reasons set forth below, Defendant’s Motion (DE 36) is GRANTED and Plaintiff’s Cross-Motion (DE 38) is DENIED. I. BACKGROUND After working over twenty-five (25) years at Aon Risk Services, Inc. (“Aon” or “Company”), Plaintiff Michael Landa resigned from his position as Executive Vice

1 In accordance with Southern District of Florida Local Rule 56.1, the Parties properly filed separate and contemporaneous Statements of Material Facts. See S.D. Fla. L.R. 56.1(a). The Court will cite to the Parties’ respective statements of material facts throughout this Order. President and Producer on June 10, 2021. (DE 39 at 1.) At the time, Landa was an eligible participant and member of the Aon Corporation Excess Benefit Plan as Amended and Restated as of January 1, 2009 (“EBP” or “Plan”). (DE 39 at 1.) Otherwise known as an unfunded Supplemental Executive Retirement Plan, the Plan functions as an

unfunded deferred compensation plan offering supplemental retirement benefits for select management or highly compensated employees. (DE 39 at 1.) Generally, Aon operates as an international professional services business that provides insurance brokerage services. (DE 36 at 1.) While Landa worked at the Company, he primarily identified, developed, and maintained relationships with current and potential clients for revenue-generating opportunities on Aon’s behalf. (DE 37 at 1.) Landa asserts that he resigned due to Aon’s failure to comply with assurances made to

him related to several projects he facilitated in addition to certain uncertainties stemming from a possible merger of Aon and Willis Towers Watson. (DE 39 at 1.) At the time of his resignation, Landa and Aon had an employment agreement, which included a ninety (90) day restrictive covenant limiting Landa’s ability to accept employment with any of Aon’s competitors. (DE 38 at 4; DE 39 at 1.) As a result of the restrictive covenant, Landa’s termination, as defined in the employment agreement, was not effective until September 8, 2021. (DE 39 at 1–2.) Landa maintains that he abided by his employment contract’s restrictive covenant and did not start his new position working for one of Aon’s competitor, Marsh USA, Inc. (“Marsh”), until after September 8, 2021. (DE 39 at 1.)

Following Landa’s resignation, multiple Aon employees, including Aon’s Managing Director for the East Region, the Sales Leader for the East Region, and Landa’s son, Jason Landa, also resigned from Aon and subsequently joined Marsh. (DE 37 at 3; DE 47 at 1.) Moreover, in the following months, from June 2021 through January 2022, multiple Aon clients, including several of Plaintiff’s largest revenue-generating clients, moved their accounts from Aon to Marsh. (DE 37 at 3.) In light of these resignations, on June 24, 2021, Aon filed suit against Landa, Marsh, and other former Aon executives and

employees in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida alleging Landa and the other former Aon employees breached numerous contract provisions, including the employee non-competition, non-solicitation, and confidentiality conditions. See Aon Risk Servs., Inc. of Fla. et al. v. Marsh USA, Inc. et al., Case No. 2021-015086-CA-01 (44) (Fla. 11th Jud. Cir. Ct.) (“Marsh Litigation”). Following the adjudication of Aon’s temporary restraining order, the parties to the Marsh Litigation entered into a settlement agreement which included a carve out for Plaintiff’s EBP claim and benefits. (DE 37 at 5.)

According to the Plan’s terms, Landa’s EBP benefits were not scheduled to begin until October 1, 2021—the first month after his termination date. (DE 39 at 1–2.) Under the Plan, a member’s benefits are conditioned on his compliance with certain post- employment restrictions, which include an employee non-solicit, a customer non-solicit and non-service, and a non-use and disclosure of confidential information. (DE 37 at 2.) Specifically, Section 4.4 of the Plan, the Forfeiture of Payments Under Certain Circumstances (“Forfeiture Clause”) provides:

A Member’s right to receive any payments under the [Plan] shall be forfeited if he: (b) has, during or after employment, in the sole judgment of the Chief Executive Officer of the Company, after reasonable investigation, breached any of the following prohibitions: (i) Prohibition on Hiring . . . an employee or former employee shall not . . . induce or cause any person or other entity to induce any person who is an employee of the Company to leave the employ of the Company; (ii) Prohibition on Completion . . . an employee or former employee shall not . . . Compete in any way with the Business of the Company; (A) ‘Complete in any way with the Business of the Company’ shall mean to enter or attempt to enter into (on one’s own behalf or on behalf of any other person or entity) any business relationship of the same type or kind as the business relations which exists between the Company and its clients or customers to provide services related to the Business for any individual, partnership, company, association or other entity who or which was a client or customer of the Company in the 24 months prior to the end of employment or was a Prospective Client or Customer of the Company. (B) ‘Business’ shall mean the businesses of insurance and reinsurance brokerage benefits consulting, compensation consulting, human resources consulting, managing underwriting, loss prevention, soliciting and servicing the insurance and reinsurance needs of commercial and individual clients . . . (iii) Prohibition on Disclosing Trade Secrets and Confidential Information. An employee or former employee shall not disclose or use during (except as required in the course of employment with the Company) or subsequent to the termination of employment, any trade secrets or confidential or proprietary information of the Company of which the employee became aware by reason of being employed by the Company or to which the employee gained access during his employment by the Company and which has not been publicly disclosed (other than by the employee in breach of this provision) . . . Such information includes client and customer lists, data, records, computer programs, manuals, processes, methods and intangible rights which are either developed by the employee during the course of employment or to which the employee has access[.] (DE 39 at 3–4.) In the midst of the Marsh Litigation, Aon sent Landa an Excess Benefit Plan Payment Notice (“Plan Payment Notice”) informing him that he would receive his EBP monthly benefit of $53,214.67 beginning October 1, 2021, payable in a five (5) year annuity, for a total payment amount of $3,192,880. (DE 39 at 2.) Included with the Plan Payment Notice were several administrative forms addressed to Landa’s attention; Landa subsequently completed these forms and mailed them to the appropriate address on November 2, 2021. (DE 39 at 2.) Soon after, Landa received a letter dated November 30, 2021, indefinitely suspending his EBP benefits effective immediately due to a “pending review of [his] potential violation(s) of the Plan’s prohibitions on competitive activity (Section 4.4(b) of the Plan)” (“Suspension Letter”). (DE 39 at 2–3.) The

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