The United States District Court for the Southern District of Ohio has held that an employment practices exclusion bars coverage for claims for tortious interference with prospective economic advantage and misappropriation of trade secrets. PICA Corp. v. Clarendon America Insurance Co., No. 07-1126, 2008 WL 2872274 (S.D. Ohio July 22, 2008). In the underlying lawsuit, the insured was alleged to have “recruited its employees and the trade secrets each of those employees possessed in violation” of an agreement with the plaintiff. The policy at issue excluded from coverage “damages arising out of . . . [y]our employment or personnel practices. . . .” According to the court, “[r]ecruiting employees is unquestionably an ‘employment or personnel practice.’” Because the claims for tortious interference with prospective economic advantage and misappropriation of trade secrets arose out of “employment or personnel practices,” the court held there was no coverage and granted the insurer’s motion for summary judgment.
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Court holds tortious interference with economic advantage and misappropriation of trade secrets claims barred by employment practices exclusion
- Wiley Rein LLP
- August 12 2008
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