![]() Grant sent about 14 kits that contained an employment application, a description of benefits, benefit enrollment cards, a noncompetition agreement, and other information concerning Lindsey's policies. Neal asked Grant for information on Lindsey's benefit plan, and for “a couple dozen” employment kits. In the ensuing weeks, Neal, Martin and Orzes conducted a financial analysis of GAB and Lindsey, and ultimately decided to pursue employment with Lindsey. In June 1991, Lindsey flew the three men to its corporate headquarters in Texas where they met with Lindsey's president, Terry Grant, who explained the company's plans to become the largest independent adjusting firm in America, with offices in every state. Neal invited the two to explore the Lindsey opportunity with him. Offer in hand, Neal quietly approached two close friends at GAB, Greg Martin, GAB's Sacramento branch manager, and John Orzes, an executive general adjustor for GAB. That same month, the GAB board of directors reelected Neal to the office of regional vice-president. In April 1991, Lindsey offered Neal the new position of western regional manager. ![]() ![]() By 1991, it had branched out into various regions of the United States, and though it had several small offices in California, it still had no western region. Lindsey had operated exclusively in Texas until 1988. Within a month, Bergs and Neal had a falling-out and, unbeknownst to GAB, Neal began looking for a job elsewhere. In September of 1990, GAB board member Bill Bergs became the corporation's president and chief operating officer. Briefs from both sides use the same language to describe him: “an active manager and a charismatic leader-hardworking, demanding, inspiring loyalty.” The parties agree Neal was a highly valued employee. Neal was reelected by the board to the regional vice-president position in 1989, 19. Each was the “top line manager” for his region, responsible for “overall regional planning, sales, quality control, budgeting and the performance of the region.” The regional vice-presidents reported directly to the president of GAB. The board of directors elected Neal and seven others to the newly created corporate office of “regional vice-president.” Two years later GAB restructured its operations, consolidating its 22 regions into eight. He steadily marched up the corporate ladder and by 1986, when GAB was acquired by a Swiss company, Neal was manager of the Los Angeles region. Randy Neal began his career at GAB in 1970 in an entry-level position. In 1991, when the relevant events took place, GAB employed over 3000 people in about 120 branch offices nationwide. GAB is an independent adjusting company, operating since 1885. GAB complains, rightly, of instructional error. A jury unanimously rejected all of GAB's claim. GAB also sued both Neal and Lindsey on the novel claim of intentional interference with an employer's contract with its employees, along with misappropriation of trade secrets and other torts. GAB accused its competitor Lindsey of unfair competition in assisting and benefiting from Neal's breach of fiduciary duty. GAB claimed Neal breached his fiduciary duty in orchestrating the exodus while still an officer at GAB. (Lindsey), for their respective roles in soliciting 17 key GAB employees to resign en mass in order to join Neal in new positions at Lindsey. Randall (Randy) Neal, and Neal's new employer, Lindsey & Newsom Claim Services, Inc. (GAB) sued its former officer and employee, C. O'Reilly, Marina Del Rey, and Paul O'Reilly, for Defendant and Appellant C. Cummings, Riverside, and Christine Baran, for Defendant and Appellant Lindsey & Newsom Claims Services, Inc. ![]() Ravitz, Beverly Hills, for Plaintiff and Appellant. Manier, Universal City, Allderdice and Denman, Linda Auerbach Allderdice, Los Angeles, Greines, Martin, Stein & Richland, Kent L. Decided: August 29, 2000īallard, Rosenberg & Golper, Kenneth R. GAB BUSINESS SERVICES, INC., Plaintiff and Appellant, v. Court of Appeal, Fourth District, Division 3, California.
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