Howden has promised to fight against paying €1.76m in compensation to a Spanish broker for breach of covenants.

Ealier this month, a Madrid judge ordered Howden Iberia to pay €1.7m and €200,000 prosecution costs to Seville insurance broker Morera & Vallejo.

The dispute started five years ago when Howden Iberia recruited staff from Morera & Vallejo. The staff then allegedly rifled through their old contacts book to win over Morera & Valejo clients to Howden Iberia, in breach of contract.

But Howden chief executive Tim Coles said today: “We do not agree with the decision and we will be appealing.”

The case will now go to the appeal at the Court of Madrid.

A spokesman for Morera & Vallejo said: "There is no doubt justice has been done."

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