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The Honolulu Advertiser
Posted on: Saturday, April 5, 2008

Insurance company sues CEO who switched to rival

By Greg Wiles
Advertiser Staff Writer

Marsh & McLennan Cos. has sued the former head of its Marsh USA office in Honolulu, saying he violated employment agreements when he moved to insurance practice competitor Aon Corp. last month, allegedly taking clients with him.

The lawsuit filed in U.S. District Court alleges that Chad W. Karasaki was prohibited from joining Aon's Honolulu office as its chairman and chief executive officer because of the agreements. This included restrictions on him working with Marsh's clients or prospects for a period of a year after he left the company.

The lawsuit said several of Marsh's current and prospective customers have informed the company they are leaving Marsh for Aon.

Karasaki referred questions to his attorney, Jeff Portnoy, who said he couldn't respond because he had yet to see the lawsuit. "We haven't seen it and we haven't been served," Portnoy said.

Marsh also alleged Karasaki has specialized knowledge in construction insurance, including something known as owner controlled insurance programs. Karasaki also was aware of Marsh's trade secrets along with strategic and tactical plans to compete with Aon in Hawai'i, according to the lawsuit.

Besides joining Aon as head of its Hawai'i office last month, Karasaki was appointed managing director of the Aon Construction Services Group.

The lawsuit is asking for an injunction against Karasaki, and for an order preventing him from performing or supervising insurance services for any ex-Marsh customer. It also asks for payment of damages to be determined by a court.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.