Baty v. ProTech Insurance Agency
This case concerns a dispute between an insurance agency, Baty & Associates Insurance Agency, Inc. (BAI), and its shareholder Rick D. Baty, against former officers Connie Suzanne Malliaros and Treva C. Neill, their new company ProTech Insurance Agency, and four insurance companies: Aetna, Hartford, AMS, and Fidelity. The appellants alleged breach of fiduciary duties, wrongful diversion of business, tortious interference with contracts and prospective business relationships, and civil conspiracy. The Texas Fourteenth Court of Appeals reviewed the trial court's summary judgments, which were largely in favor of the defendants. The court reversed the summary judgment regarding tort claims against Malliaros, Neill, and ProTech, and for Hartford on tortious interference with prospective business relationships, remanding these for further proceedings. However, it affirmed the summary judgments for the other insurance companies on tortious interference with prospective business relationships, and for all insurance companies on claims of tortious interference with existing contracts, inducing breach of fiduciary duty, and civil conspiracy, clarifying that the prior settlement and rescission agreement did not release the tort claims.