Ryan Hites, V. Griffin Maclean, Inc.

CourtCourt of Appeals of Washington
DecidedApril 10, 2023
Docket81584-9
StatusUnpublished

This text of Ryan Hites, V. Griffin Maclean, Inc. (Ryan Hites, V. Griffin Maclean, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ryan Hites, V. Griffin Maclean, Inc., (Wash. Ct. App. 2023).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

GRIFFIN MACLEAN, INC., a Washington No. 81584-9-I Corporation, DIVISION ONE Respondent, UNPUBLISHED OPINION v.

RYAN A. HITES, an individual; ANTHONY P. NEVILLE, an individual; and VICTORY INSURANCE SOLUTIONS CORPORATION, a Washington Corporation,

Appellants.

ANDRUS, J.P.T. — Ryan Hites, a former employee of the insurance agency,

Griffin MacLean, Inc., 1 appeals a summary judgment ruling that a nonsolicitation

agreement he executed was valid and a finding that he breached that agreement

by soliciting business from Griffin MacLean clients after leaving its employ. Hites

also appeals the trial court’s posttrial modification of the jury verdict and the entry

of judgment against him on Griffin MacLean’s claim of tortious interference with a

business expectancy.

1 While this appeal was pending, Griffin MacLean’s name was changed to TD Insurance, Inc. For

the sake of clarity, we refer to the company as Griffin MacLean. Also while the appeal was pending, Hites, Anthony Neville, and Victory Solutions Corporation filed for bankruptcy protection. Once the bankruptcy proceedings were resolved, Neville and Victory settled with Griffin MacLean and stipulated to the dismissal of their appeal. Hites remains the sole appellant. No. 81584-9-I/2

We affirm the trial court’s order granting partial summary judgment to Griffin

MacLean on its contract claim but we reverse judgment against Hites on the tortious

interference claim because the jury did not find that Hites committed this tort. We

remand for the trial court to enter a judgment on this claim consistent with the jury’s

verdict.

FACTS

Griffin MacLean is an insurance broker with between 5,000 and 6,000

clients. Its owners, Paul Dent and Robert Tobeck, purchased the agency from

Tobeck’s father-in-law in 2007. The majority of the agency’s practice involves

commercial insurance. Over the years, as the firm grew, Dent and Tobeck acquired

three other agencies. One of the agencies Griffin MacLean purchased was Neville

& Neville, owned at least in part by Anthony Neville. Griffin MacLean purchased all

of Neville’s customer lists and files as well as the company’s good will for $1.3

million. It also hired Anthony Neville to work for Griffin MacLean as one of its sales

team. In November 2011, Neville executed an agreement with Griffin MacLean in

which he agreed he would not solicit company customers for a two-year period if

he left the firm’s employ.

In 2015, Ryan Hites approached Griffin MacLean for employment in

insurance sales. On May 22, 2015, Griffin MacLean offered Hites a position as an

insurance sales associate. Because Hites lacked insurance experience, Griffin

MacLean offered to pay Hites a salary for his first three years, decreasing

incrementally as he began earning commissions.

-2– No. 81584-9-I/3

Hites accepted this offer and one week later, on May 29, Hites signed the

same nonsolicitation agreement that Neville had signed in 2011 (the “Agreement”).

The Agreement prohibited Hites from soliciting Griffin MacLean clients, from

competing with Griffin MacLean for business with those clients, and from interfering

with Griffin MacLean’s relationship with those clients or with existing employees,

for a period of two years after termination. It also prohibited Hites from using or

disclosing company trade secrets at any time except as required in the course of

his employment with Griffin MacLean.

On October 19, 2018, Neville and Hites did not show up to work. According

to Tobeck, shortly after 9 a.m. that morning, he received an email from an attorney

representing Hites and Neville. In this letter, counsel explained that the two men

wanted to leave Griffin MacLean’s employ “without the encumbrance of a post-

employment restraint.” The attorney claimed that the agreements lacked

consideration and were unenforceable. The two employees also alleged that they

were owed unpaid commissions. The letter sought an agreement from Griffin

MacLean that the men could solicit “their clients” without restraint.

The following Monday, October 22, 2018, Hites and Neville formed a new

insurance company, Victory Insurance Solutions Corporation (Victory). Hites and

Neville immediately began soliciting business from Griffin MacLean clients, often

informing them that Griffin MacLean lacked the expertise to continue servicing their

insurance needs. These solicitations were successful and numerous clients

notified Griffin MacLean of their decision to name Victory as their broker of record.2

2 Paul Dent, President of Griffin MacLean, explained that changing the broker of record “can allow

Neville and Hites to take the client’s entire portfolio.” In the insurance industry, underwriting services

-3– No. 81584-9-I/4

On November 9, 2018, Griffin MacLean filed a lawsuit against Hites and

Neville, seeking an injunction prohibiting Neville and Hites from violating their

Agreements. Griffin MacLean later added Victory as a defendant and asserted

claims of breach of contract against Hites and Neville, and claims of unjust

enrichment and tortious interference with its business against all three defendants.

Hites and Neville, in answer to the amended complaint, raised five

affirmative defenses: laches, unclean hands, unspecified illegality by Griffin

MacLean, estoppel, and lack of consideration. They also asserted counterclaims,

alleging that the restraints on their business activities were illegal and that Griffin

McLean had unilaterally reduced their commissions without notice or consent in

violation of RCW 49.52.050 and RCW 49.48.010. They later added a claim for

nonpayment of overtime under chapter RCW 49.46.

On January 23, 2019, the court granted Griffin MacLean’s request for a

temporary restraining order (TRO), prohibiting Hites and Neville from contacting or

rendering professional insurance services to any Griffin MacLean client and

restrained them from interfering in Griffin MacLean’s relationships with its

employees.

The court granted a preliminary injunction in Griffin MacLean’s favor on

February 13, 2019. The court found that at least fifteen clients had moved their

business from Griffin MacLean to Victory and that Neville and Hites had solicited

only allow one broker to quote a policy to a potential client. Therefore, once a quote is given, other brokers are prohibited from quoting the same policy. And brokers who are listed as a broker of record for a client are given preference to quote policies to that client. Once Neville and Hites had clients identify Victory as their broker of record, they were given priority to provide renewal quotes for other policies held by the client, which effectively gave them priority to each client’s entire insurance portfolio.

-4– No. 81584-9-I/5

additional Griffin MacLean clients. Like the TRO, the injunction prohibited the

former employees from soliciting or accepting insurance business from any Griffin

MacLean client and barred them from interfering in Griffin MacLean’s relationships

with these clients.

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