Broker sues former employee over breach of covenant
Jelf is suing former employee Frank Walsh, claiming he carried out business with a rival broker while under restrictive covenants.
Jelf claims Walsh dealt with rival broker Archenfield Insurance Management shortly after resigning from Jelf.
Jelf seeks damages for lost insurance commission, future loss of profits and interest, according to a writ issued at the High Court of Justice on 9 February 2011.
Walsh resigned his position as business development manager at Jelf’s Cardiff office in August last year and was put on gardening leave until October last year, the writ says.
Jelf fired off a warning letter to Walsh just three weeks after his resignation warning him not to breach his restrictive covenants, the writ says.
Despite the warning, Jelf claim that Walsh broke his restrictive covenants by seeking business within 20 miles of Cardiff.
He is also accused of dealing with several clients in the Cardiff area in November and December last year.
Jelf, through its solicitors Morgan Cole, wrote to Walsh for a second time in December last year reminding him of his contract restrictions.
The letter urged him to sign a document promising to obey the terms of his contract by January 4 or else face legal action, the writ says.
Welsh, through his solicitors Davies, Prichard and Weatherill, refused to return the document, it is claimed.
Jelf and Morgan Cole refused to comment.
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