PR honchos Regan, O'Neill in legal feud
George Regan, a titan of Boston's public relations industry, went to court today seeking the temporary shutdown of a new firm launched by rival PR maven Thomas P. O'Neill III and a former Regan employee who specializes in the hospitality industry.
In the lawsuit filed in Suffolk Superior Court, Regan alleges that O'Neill and Nicole Russo are engaged in a legal sleight-of-hand to evade a non-compete clause in a 2007 contract Russo is alleged to have signed.
Regan also alleged Russo and O'Neill are poaching Regan clients by using proprietary information Russo shared.
"We need to understand what's been shared with one of his competitors,'' Regan's attorney, Jeffrey Denner, said in a telephone interview. "That is the fear. They need to find out how much of that has occurred. They need to make sure it is stopped.''
The contract, Regan contends, banned Russo from working for any public relations firm within 50 miles of Boston for six months after leaving his company, according to the lawsuit. Both sides agree Russo left earlier this year, but they differ on the date.
Russo, in a telephone interview, said she does not recall signing any such contract and said Regan has not been able to produce the original.
The paperwork that Regan insists contains Russo's signature, she said, is dated Jan. 31, 2007. Russo said at that time she was on leave having given birth to her second child, a daughter, two months earlier.
"It doesn't resemble too much of my signature,'' Russo said of the copy of the contract provided to her by Regan. "I was on maternity leave and I have no memory whatsoever of signing a contract.''
Russo said that the new venture, called O'Neill Hospitality and Entertainment LLP is a legally separate entity from O'Neill Associates. She is a partner in the new firm and not an O'Neill employee, she said.
"We went ahead and created a newly formed company that I am a partner in, not because of a contract, but because as far as we know, there is no contract,'' Russo said."they won't provide us with the original.''
O'Neill's firm referred calls to its attorney, Patricia Lang Farnsworth. "This complaint is baseless and without merit,'' she said in a statement. "We look forward to proving that in court.''
Russo worked for Regan for several years. "I was proud to work for Regan Communications for the amount of time that I did,'' Russo said. "I hope that I positively impacted his company. I had to make a personal choice based on a work/life balance.''
She added, "I have no clients that are Regan Communications clients. None.''
But Regan contends in court papers that the partnership was created only after his attorneys warned O'Neill on March 3 that Russo was violating the non-compete clause.
Two days later, according to state records, the partnership was created.
A now-retired Regan executive, Steve Dunleavy, filed an affidavit with the lawsuit, saying he witnessed Russo sign the contract, according to court records.
Regan also claimed in the lawsuit that his and his firm's reputation for "honest and ethical dealings'' is being undermined by Russo and O'Neill's new business and by Russo's insistence she never agreed to the non-compete contract.
Regan's lawsuit seeks an injunction shutting down the new firm, at least until six months have passed.
In the lawsuit, Regan contends that Russo misled him and other executives in his firm. When she told them she was leaving, she declined to say where her new job was or give the name of the company she was joining.
Regan also contends Russo told a "complete lie'' when she told the firm she was leaving to spend more time with her growing family.
As proof of Regan's claim that Russo went to work for O'Neill, the lawsuit cites Tweets and Facebook postings allegedly made by Russo in which she identified herself as vice president, or VP, of O'Neill and Associates.
Alan Eisner, president of Regan's firm, warned O'Neill to keep an eye on his own staff who may choose to defect from him in the future and predicted that O'Neill will lose in the long run.
"This is a small city and everybody judges you based on your integrity,'' Eisner said. "I don’t think this was one of Tommy O'Neill's finest moments.''
O'Neill declined through an aide to comment on Eisner's statement.
A court date has not been set.
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