STAMFORD, Conn. — A Connecticut state judge ruled Oct. 17 that several former General Re Corp. executives misappropriated trade secrets after they defected to rival Arch Capital Group (General Reinsurance Corporation v. Arch Capital Group, LTD, et al.), No. X05CV074011668S, Conn. Super., Stamford; 2007 Conn. Super. LEXIS 2629).
Stamford Superior Court Judge Adams issued a temporary injunction against Arch, ordering it not to use or divulge any Gen Re proprietary information or trade secrets, including loss cost data that Arch was using to compete with Gen Re.
In April, four top executives from Gen Re's Global Property Facultative reinsurance division, Steven Franklin, Jennifer Apgar, Philip Augur and Kenneth Vivian, resigned to start a new facultative unit at Arch. Within a week, 26 other Gen Re facultative employees left to work at Arch.
A month later, Gen Re sued Arch Capital Group and the four executives for breach of fiduciary duty, tortious interference with contract and business expectancies and alleged violations of the Connecticut Uniform Trade Secrets Act and the Connecticut Unfair Trade Practices Act. Gen Re accuses the defendants of plotting to move a substantial portion of its business, trade secrets, personnel and proprietary information to Arch to unfairly create and operate a competitive facultative underwriting division.