Monumental Life Insurance Co. of Baltimore has been ordered to pay $9.4 million in damages to Capital Holding Corp. of Louisville, Ky., for breaking a 1984 agreement concerning the hiring of insurance agents.
The award was made by a three-member arbitration tribunal of the American Arbitration Association.
"We continue to believe that we did nothing improper," says James O'C. Gentry, vice president and general counsel for Monumental Life. Monumental is considering an appeal, he says.
Gentry also notes that the award is much smaller than the more than $100 million in damages that Capital had originally sought. There were no punitive damages nor attorneys' fees included in the award, he says.
Capital Holding's Peoples Security Insurance co, of Durham, N.C., filed its complaint in 1986. The company said Monumental unlawfully recruited many Peoples Security agents, misappropriated proprietary customer information, and wrongly replaced Peoples Security policies with Monumental policies in several states, including Maryland, Delaware, Pennsylvania, Virginia, North Carolina and South Carolina.