Nebraska insurance agent jailed for refusing to quit selling
By Lauren McNitt
A Nebraska insurance agent went to jail last weekend because he wouldn’t quit selling insurance, according to a news report from the Lincoln Journal Star.
Larry J. Hall, 67, allegedly violated a judge’s orders that he stop writing policies and commissions to certain clients. The catch: He sold these clients to another company nearly five years ago and signed a non-compete agreement.
In July 2007, Hall sold Associated Insurance Managers to the McCashland-Kirby Insurance Agency. The sale contract included a non-compete clause, which prevented him from selling insurance to his former customers for four years. In late February 2009, Hall created a new company with a similar name to that of the one he sold — AIM Insurance — and took the list of 800 clients included in the sale with him.
McCashland-Kirby sued in April 2009. A judge issued a temporary injunction against Hall barring him from doing business with his former customers and from using the AIM name. In December 2011, the judge made the terms of the injunction permanent and ordered Hall to pay more than $55,000 and attorney fees. In addition, the judge found him in contempt of court for continuing to sell insurance policies and receiving commissions from the clients he sold to McCashland-Kirby.
Last week, McCashland-Kirby presented evidence that Hall had been selling to his original customers as recently as last fall. The judge signed a bench warrant for Hall, telling Hall he’d remain in jail until he returned nearly $1,000 in commissions to McCashland-Kirby. Hall left custody on Tuesday, according to reports.