CIBC Private Wealth Advisors Inc., an arm of giant Canadian bank CIBC, is suing two Illinois advisors who resigned in April intending to join Morgan Stanley. The two oversaw some $1.5 billion in client assets under management.
CIBC said that Erin Dickes and Evy Stein-Keller broke the terms of their contracts when they said in April they were leaving their jobs. CIBC said Dickes sent out an email from a company address announcing her departure, which violated her agreement not to contact clients during her notice period. Though Dickes honored her agreement to give 90 days’ notice when she tendered he resignation in April, Stein-Keller did not, CIBC claims, and resigned immediately, breaching her contract.
Although Dickes' email anouncement did not mention Morgan Stanley,
A junior team member, Matthew Gerth, also resigned, though he is not named in the suit.
The suit was filed in the U.S. District Court for the Southern District of New York, where the bank said the two advisors signed their agreements. It seeks both a restraining order and injunctive relief against Dickes and Stein-Keller that would keep them from soliciting clients.
At the end of her CIBC tenure, the bank said, Dickes was the primary relationship manager for 200 clients holding some $1.2 billion in assets under management. Stein-Keller had 30 relationships with clients holding $350 million in assets, according to the suit.
CIBC said it paid Dickes about $2.4 million during the year before her resignation and paid Stein-Keller $190,000.
Specifically, Dickes's email to clients said the following, according to the CIBC complaint:
"Dear Friends, It has been a pleasure working with you and your families over the past many years. I am writing to let you know that I intend to resign today from CIBC. It is my understanding that CIBC wants me to provide 90 days’ notice of my intended resignation prior to commencing employment with my new firm, and I intend to honor CIBC’s request. I am grateful for the opportunity to be of service to you, and hope that CIBC will permit me to assist you during the transition. Sincerely, Erin."
The bank complains that by sending this email, she violated the agreement not to contact clients, and that she did so using the bank's email server. Also, she did not merely say she was leaving but affirmatively stated she was joining another firm, CIBC said.