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A Sacramento employee benefits firm is suing a longtime local employer, claiming it abruptly changed course to do business with another benefits company.
Kelley & Swain, in documents filed May 9 in Sacramento Superior Court, claims that Campbell Soup Co. of Camden, N.J., named Hewitt Associates of Lincolnshire, Ill., the "broker of record" for a Campbell health benefits program last year after Kelley & Swain had negotiated health plan contracts through 2004.
Hanging in the balance is $400,000 in commissions due to Kelley & Swain for their work, the lawsuit claims. The suit alleges breach of contract, intentional and negligent interference with prospective economic advantage, plus a new allegation - fraud.
"The fact that Hewitt was to become the broker of record was concealed to allow Kelley & Swain to go forward and do the negotiations," said Jim Lewis, an attorney representing the benefits brokerage. "We recently amended the lawsuit to add an action for fraud."
Principals in Kelley & Swain declined to comment, on advice from their attorney. Campbell...