Arthur J Gallagher has settled a damages action against two former employees who it says breached the restraint-of-trade obligations in their employment contracts.

Terms of the out-of-court settlement reached with the two Tasmanian brokers, who left the company in 2011 and 2013, have not been disclosed.

Gallagher had sued Timothy Hadrill and Gregory Lewer, plus their current employer, Tasmanian Insurance Brokers, which it said “induced” breaches of the employment contracts.

The proceedings were settled after a Supreme Court mediation.

Gallagher says its decision to start legal proceedings in the Tasmanian Supreme Court last December “reflects the company’s zero-tolerance stance where we consider brokers have breached ongoing restraint-of-trade obligations”.

Gallagher Australia CEO Andrew Godden says he is pleased the litigation has been resolved positively. 

“Our company and our culture is founded on doing the right thing and acting with integrity, both from a legal and an ethical point of view,” he said.