Global insurance brokers Arthur J. Gallagher is suing two former
employees who left to start their own New York brokerage firm for allegedly soliciting Gallagher clients and using confide
ntial information in violation of their employment agreements.
Gallagher claims that James Baranello and Joseph Siringo have violated agreements to not solicit or acc
ept business from the Gallagher customers they serviced at Gallagher
for two years after leaving the firm and they also agreed not to use or di
sclose Gallagher confidential information for their own use, or the use of another.
According to a complaint filed in federal court in New York, Bara
nello and Siringo joined Gallagher in 2021 and worked as a team on m
any accounts. They both resigned without 30-day notice in May 202
5 and launched Cornerstone Risk Advisors in New York, according to the lawsuit.
Gallagher claims that before resigning the two solicited a very large unnamed client they serviced
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while at Gallagher, a client representing 70% of the total book
of business they were responsible for at Gallagher. That clien
t then moved its business to Cornerstone. Gallagher claims th
e two have since also diverted other clients including a plumbing company, an electric company and a con
struction contracting firm that account for more than $50,000 in recurring revenue to Gallagher.
Gallagher maintains that Cornerstone and the two founders continue
to violate the nonsolicitation and confidentiality agreements.
Gallagher says that its employees have the right to resign and wor
k for a competitor or form their own brokerage. However, “there is a rig
ht way to resign, and a wrong way,” Gallagher asserts while maint
aining that its post-employment restrictions are reasonable.
Gallagher is seeking damages and temporary and permanent injunctive relief against Cornerstone and the former em
ployees from further breaches of the contractual agreements.