NEW YORK: Morgen-Walke Associates (MW) and one of its former MDs, Lisbeth "Betsy Brod, are in the midst of a legal squabble over alleged violations of Brod's employee contract.
Brod, who left MW by mutual agreement last November, filed suit against her former firm in April for allegedly withholding part of her severance and a consultation fee for work she did for MW after leaving.
MW is counter-suing Brod and her start-up firm, The Brod Group, for allegedly poaching former MW clients and former VP Jonathan Schaffer, who has joined her agency as a principal. MW is also suing Schaffer for allegedly soliciting former MW clients for The Brod Group. The clients named are Ducati Motor Holding, Maximus, and Watson Wyatt & Company.
Schaffer and Brod are barred from soliciting business from MW clients for 18 months.
The pair replied to the counter-suit by denying having worked for Ducati or Watson Wyatt, but admitted the firm is currently servicing Maximus.
Brod and Schaffer also said they didn't know MW had lost Ducati or Watson Wyatt until MW filed its counter claim.
Brod and Schaffer contend they have not violated their non-solicitation agreements by servicing Maximus, as the company sought out their services without direct solicitation from them.
Through their lawyers, both parties told PRWeek that they expect to prevail in the suit.
See Analysis, p. 9.