ACG argues that Triad breached its agreement, misrepresented itself when it gave permission to form the investment fund and broke a promise not to enforce the restrictive covenant.
ACG argues that restrictive covenants signed as part of a promissory note are unenforceable, as Georgia law does not recognize such provisions between lenders and borrowers, and that Triad and Atlanta Capital technically never entered into an employment agreement or an employee-employer relationship. As proof, ACG has entered into evidence a statement on Triad’s website referring to the “independence” of its affiliated financial advisors and recognizing their affiliates “may decide to leave us and affiliate with other financial services firms.”
Furthermore, ACG argues that enforcement of the restrictive covenant has harmed their ability to serve their clients and has led to monetary losses, while Triad cannot definitively show that ACG acted with malice or intent to injure, or that ACG attempted to improperly solicit any Triad customers or contractors.
In its counter action, ACG seeks compensatory damages in an amount to be determined and such other relief as Finra’s arbitrators find suitable.
In the interim, Young said, MSY has changed its name to Arkadios Capital and continues to serve its clients as the dispute with Triad finds its way through the court system.