CGB Diversified Services Inc v. US Crop Insurance LLC et al

Filing 77

CONSENT JUDGMENT. Signed by Judge Susan Webber Wright on 9/13/2016. (mef)

FILED

US DISTRICT COURT
EASTERN DISTRICl AHKANSAS

SEP 1 3 2016
IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT ARKANSAS
t:'~EW-CK, CLERK
WESTERN DIVISION
y ~
DEPCLERK
PLAINTIFF

CGB DIVERSIFIED SERVICES, INC.

vs.

CASE NO. 4:15-cv-291-SWW

BOBBY MILLS and U.S. CROP INSURANCE, LLC

DEFENDANTS

CONSENT JUDGMENT
Based upon the agreement of the parties, the Court hereby finds and orders
the following:
1.

Plaintiff CGB Diversified Services, Inc. (CGBDS) is a Louisiana

corporation registered to do business in Arkansas.
2.

Defendant Bobby Mills ("Mills") is an individual residing in Jonesboro,

Craighead County, Arkansas.
3.

Defendant U.S. Crop Insurance, LLC ("U.S. Crop") is an Arkansas

limited-liability company.
4.

In February 2013, CGBDS, Mills, and U.S. Crop entered into a

Purchase Agreement whereby Mills and U.S. Crop agreed to sell U.S. Crop's book of
business and related goodwill to CGBDS. Mills received over $2 million for the book.
5.

After the sale, Mills became a full-time employee of CGBDS, where he

worked as a crop-insurance agent under the job title "risk management specialist."
Mills' job duties required him to sell insurance policies only from Diversified Crop
Insurance Services (DCIS), a division of CGBDS.

1

6.

On May 26, 2015, CGBDS filed suit against Mills and U.S. Crop,

asserting claims for breach of contract, unjust enrichment, and breach of fiduciary
duty.
7.

The Court finds that it has jurisdiction over each of the parties and the

subject matter of this action and that venue is proper in this Court.
8.

Mills hereby admits that during his employment with CGBDS, he

breached his fiduciary duty of loyalty to CGBDS.
9.

Mills hereby consents to a judgment in the amount of Two Hundred

Fifty Thousand Dollars ($250,000.00) in favor ofplaintiff CGBDS.
10.

Mills further consents that for a period of one year beginning on

September 1, 2016, Mills shall not solicit any individual or entity that had a crop
insurance policy with DCIS during the last 12 months of Mills' employment with
CGBDS. Mills has been provided with a listing of the customers that he is
prohibited from soliciting. For purposes of this Consent Judgment, "solicit" means
direct or indirect communication, whether verbal or written, with any individual or
entity that had a crop insurance policy during the last 12 months of Mills'
employment with CGBDS, for the purpose of providing contact information or any
other business purpose, whether or not said communication is initiated by the
customer.
11.

Mills further consents that for a period of one year beginning on

September 1, 2016, Mills shall not service any individual or entity that had a crop
insurance policy with DCIS during the last 12 months of Mills' employment with

2

CGBDS. Mills has been provided with a listing of the customers that he is
prohibited from servicing. For purposes of this Consent Judgment, "service any
individual or entity'' means to provide to an individual or entity any information or
assistance related to crop insurance or other agricultural risk-management services.
The prohibition on servicing these customers shall cease as to any customers of
W.C. Mills in the event that W.C. Mills dies or becomes incapacitated during the
one-year period.
12.

This case will be administratively closed. However, this Court will

retain jurisdiction if it becomes necessary to enforce the parties' settlement
agreement or this Consent Judgment. The Court may reopen the case at the request
of any party or on its own motion.
IT IS SO ORDERED THIS/ 5'1DAY OF SEPTEMBER, 2016.

~&-;~
United States District Jud~~

3