Texas Title Companies Accuse Competitor of Workforce ‘Raid’

SAN ANTONIO — Two Texas title insurance companies have filed lawsuits accusing a rival of poaching employees, soliciting customers, and misusing confidential business information, escalating a business dispute now playing out in multiple courts.

Allegations of Employee Poaching

Alamo Title Co. of San Antonio and Chicago Title of Texas LLC of The Woodlands allege that WFG National Title Company of Texas LLC carried out a “systematic raid” on their workforce. According to the lawsuits, WFG hired 30 employees from Alamo in June and July and 41 employees from Chicago Title in January.

Chicago claims the departures were concentrated within a 10-day period at its Houston office. The complaint states, “WFG engaged in a concerted and systematic raid of Chicago Title’s employees,” and alleges the effort began after WFG recruited longtime Chicago executive Gayle Brand. Brand spent nearly 18 years as president of the Houston office before taking the position of president of WFG’s Texas operations.

Also named in the Chicago lawsuit is former vice president Marty Miller, who is now a senior escrow officer at WFG. Chicago alleges Miller breached his contract by soliciting employees to leave for WFG.

Both companies say the sudden departures harmed their businesses and led to the transfer of customers and confidential information.

Claims of Misused Information

The lawsuits accuse former employees of sharing sensitive internal material that gave WFG an advantage. The companies allege that more than 29 “active files” moved from Alamo to WFG shortly after resignations, describing the transfers as coordinated and tied to the alleged misuse of confidential information.

Chicago and Alamo claim the identical resignation wording in employee letters shows the departures were planned. They state the actions “were neither organic nor coincidental” but the result of conduct intended to damage their operations.

Their causes of action include tortious interference with existing and prospective contracts and aiding and abetting breach of fiduciary duties. They also accuse WFG of having a “smash-and-grab mindset.”

WFG Response and Counterclaim

WFG has denied the allegations in both cases. One of the company’s attorneys declined to comment on the lawsuits.

The company has filed a counterclaim in Chicago’s case. WFG says Chicago agreed in May not to enforce part of Miller’s noncompete contract if Miller or WFG repaid money Chicago said was owed under the agreement. WFG claims it paid the amount, yet Chicago still sought to enforce the contract’s customer and employee non-solicitation provisions. The company says it expects its damages will exceed $250,000 but remain below $1 million.

Court Actions

Alamo filed its lawsuit in August in state District Court in San Antonio. On Friday, WFG moved the case to the 4th Business Court Division, which handles disputes involving more than $5 million. WFG previously sought to transfer the case to Harris County, where Chicago’s lawsuit is pending, citing similarities in claims.

Chicago filed its lawsuit in July in Harris County District Court and is seeking $9.6 million in lost revenue.

Company Background

Alamo and Chicago are subsidiaries of Alamo Title Holding Co., owned by Fidelity National Financial Inc., a publicly traded company based in Jacksonville, Florida. Fidelity generated $13.7 billion in revenue last year.

WFG is part of Williston Financial Group, based in Portland, Oregon.

Title insurance companies research property records to identify issues such as unpaid taxes, fraudulent filings, or undisclosed heirs before a real estate sale.