Maguire Insurance Agency, Inc. d/b/a Philadelphia Insurance Companies v. Amynta Agency, Inc.

CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 17, 2021
Docket2:21-cv-04664
StatusUnknown

This text of Maguire Insurance Agency, Inc. d/b/a Philadelphia Insurance Companies v. Amynta Agency, Inc. (Maguire Insurance Agency, Inc. d/b/a Philadelphia Insurance Companies v. Amynta Agency, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maguire Insurance Agency, Inc. d/b/a Philadelphia Insurance Companies v. Amynta Agency, Inc., (E.D. Pa. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

MAGUIRE INSURANCE AGENCY, INC. : D/B/A PHILADELPHIA INSURANCE : COMPANIES, : Plaintiff, : : CIVIL ACTION v. : NO. 21-4664 : AMYNTA AGENCY, INC., PDP GROUP, : INC. D/B/A AMYNTA SURETY : SOLUTIONS, STEPHAN MAY, and : CHRISTOPHER SPICHER, : Defendants. :

MEMORANDUM Plaintiff Maguire Insurance Agency (“Philadelphia Insurance”) is a nationwide provider of commercial insurance and surety bonds. Defendants Stephan May and Christopher Spicher (collectively, the “Individual Defendants”) worked for Philadelphia Insurance in the company’s commercial surety division from 2015 to 2021, when they left Plaintiff’s employ to work for Defendants Amynta Insurance Agency and PDP Group (collectively, “Amynta”). At the same time, six other Philadelphia Insurance employees also left to work for Amynta. On October 25, 2021, Plaintiff filed its Complaint, alleging that May and Spicher breached their fiduciary duties and duties of loyalty to Philadelphia Insurance, as well as their respective Confidentiality and Noncompetition Agreements. Plaintiff also alleges that Amynta tortiously interfered with May and Spicher’s Confidentiality and Noncompetition Agreements, aided and abetted the Individual Defendants’ alleged breaches, and engaged in unfair competition. On November 5, 2021, Plaintiff filed a motion for preliminary injunction, which remains pending. On November 10, 2021, the Individual Defendants filed a Motion to Stay Judicial Proceedings Pending Arbitration (ECF No. 19). On November 16, 2021, the Individual Defendants filed a Motion to Compel Arbitration or, in the alternative, to Dismiss for Improper Venue (ECF No. 26), and Defendant Amynta filed a Motion to Dismiss for Improper Venue (ECF No. 27). Plaintiff filed its Responses in Opposition to all three motions (see ECF Nos. 29, 31, 32). On December 13, 2021, I denied all three motions (ECF No. 35). Upon further

consideration, I now vacate that Order and consider only Defendants’ Motions to Dismiss for Improper Venue. I. BACKGROUND Philadelphia Insurance markets and underwrites commercial property insurance and surety bonds. Compl. ¶ 23. Philadelphia Insurance’s Commercial Surety Division is responsible for underwriting surety bonds for commercial clients. Id. ¶ 26. The Commercial Surety Division is made up of six teams, each of which is responsible for a specific region of the United States. Id. ¶ 27. In early 2015, Philadelphia Insurance hired Stephan May to be their Vice President of Commercial Surety and to lead the regional team responsible for the North West, Rocky

Mountain, North Central, Central, and Ohio Valley West territories. Id. ¶ 28–30. At the same time, Philadelphia Insurance also hired Christopher Spicher as a Senior Specialty Underwriter on May’s team; Spicher was later promoted to Surety Underwriting Manager. Id. ¶ 31–32. May and Spicher worked out of Philadelphia Insurance’s Seattle, Washington office. ECF No. 26 at 2; ECF No. 31 at 13. As part of their onboarding process with Philadelphia Insurance, May and Spicher signed individual—but identical—Confidentiality and Noncompetition Agreements (collectively, the “Noncompete Agreements”). Compl. Exs. 1–2. May and Spicher also signed (1) Acknowledgments that they had received the Philadelphia Insurance Employees’ Handbook, and (2) identical Mutual Dispute Resolution Agreements (collectively, the “Arbitration Agreements”), which reference and incorporate the rules and procedures of Philadelphia Insurance’s Dispute Resolution Program (“Arbitration Program”). Id. Exs. 4–5; ECF Nos. 29-4, 29-5. May signed his Noncompete Agreement and his Mutual Dispute Resolution Agreement on

February 12, 2015. Compl. Ex. 1; ECF No. 26-3. Spicher signed his Noncompete Agreement and his Mutual Dispute Resolution Agreement on February 23, 2015. Compl. Ex. 2; ECF No. 26-3. Both agreements, as well as the Employee Handbook, provide procedures governing disputes between Philadelphia Insurance and its current and former employees. First, the Noncompete Agreements contain a choice of law and forum-selection clause: APPLICABLE LAW AND VENUE – The validity, construction, interpretation or performance of this Addendum shall be governed by the laws of the Commonwealth of Pennsylvania and the parties hereby irrevocably consent to the jurisdiction of the United States District Court for the Eastern District of Pennsylvania, or if subject matter cannot be obtained in the District Court, the Court of Common Pleas in Philadelphia County, PA. Noncompete Agreements ¶ 10. Second, the Philadelphia Insurance Employee Handbook introduces the Arbitration Program: “Effective 1-1-2015 [Philadelphia Insurance] has implemented an Arbitration and Waiver of Collective Action Program (the Arbitration Program) for all employment-related legal disputes. Please refer to the Program details and corresponding Program rules for more information.” Compl. Ex. 3 at 2. And third, the Arbitration Program—incorporated into the Arbitration Agreements signed by May and Spicher—provides two forum-selection clauses. All parties concede that the Arbitration Program and Arbitration Agreements are valid. See ECF No. 26-2 at 2; ECF No. 29 at 8–9. The Program provides that arbitration of claims falling within the scope of the agreement “shall take place in the city where the employee is or was employed by [Philadelphia Insurance].” Arbitration Program 3. The Program also provides a forum-selection clause that governs when employment-based claims are non-arbitrable: “[i]f any claim is found not to be subject to this Program and the arbitration procedure, it must be brought in the federal or state court which is closest to the site at which employee was employed by [Philadelphia Insurance]

and which has jurisdiction over the matter.” Id. As an example, equitable claims relating to interpretation or enforcement of Confidentiality and Noncompetition Agreements are non- arbitrable: Unfair Competition Claims Excluded - . . . [W]here an employee has entered into a written confidentiality, intellectual property, nonsolicitation or noncompetition agreement with [Philadelphia Insurance], the following claims for equitable relief—including, without limitation, claims for declaratory or injunctive relief— shall not be subject to arbitration, but may be resolved in court: (1) claims to interpret, apply or enforce the confidentiality, intellectual property, nonsolicitation or noncompetition provisions of the agreement(s) at issue; or (2) claims regarding the possession, use, dissemination, disclosure of or reliance on information alleged to be confidential, including common law or statutory claims for unfair competition and misappropriation of trade secrets.

Id. 2 (emphasis added). May and Spicher worked for Philadelphia Insurance for over six years. Compl. ¶ 4. On October 8, 2021, May announced his resignation effective October 22, 2021. Id. On October 11, 2021, Spicher announced his resignation, also effective October 22, 2021. Id. Between October 8 and October 11, six other Philadelphia Insurance employees also resigned. Id. ¶ 46. All eight former Philadelphia Insurance employees—May and his entire team, including Spicher, plus two additional members of the Commercial Surety Division—joined Amynta, another insurance provider seeking to expand its commercial surety services. Id. On October 22, 2021, Philadelphia Insurance informed May and Spicher that they had been terminated for cause. Id. ¶ 5. Three days later, Philadelphia Insurance filed the instant suit. On November 16, 2021, the Defendants filed the pending Motions to Dismiss for Improper Venue (ECF Nos. 26, 27). II. DISCUSSION1 a. Considering Defendants’ Motions to Dismiss for Improper Venue as Motions

to Transfer Both the Individual Defendants and Amynta have styled their Motions at ECF No. 26 and ECF No.

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Maguire Insurance Agency, Inc. d/b/a Philadelphia Insurance Companies v. Amynta Agency, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/maguire-insurance-agency-inc-dba-philadelphia-insurance-companies-v-paed-2021.