Vincent Hill and new firm settle with Merrill Lynch

A prominent local business figure has settled his differences with his former employer, but not before being involved in a short, intense legal conflict which culminated in U.S. District Court in Harrisburg issuing a restraining order against him.

Vincent J. Hill Sr. of Harrisburg quit his job at Merrill Lynch, Pierce, Fenner & Smith Inc. of Camp Hill on Aug. 7 at 3:30 p.m., according to Richard Conway, senior vice president at Salomon Smith Barney, Harrisburg.

Hill started working at Salomon Smith Barney later the same day at 4:15 p.m. He is currently employed there as second vice president-investments and as a financial consultant, Conway said.

Hill is active in the Capital Region Chamber of Commerce. He was recently nominated for a three-year term on its board of directors.

His legal trouble began Aug. 10, when Merrill Lynch sued Hill in federal court. Merrill Lynch argued Hill had unfairly taken customer lists and violated a confidentiality agreement.

Merrill Lynch's lawyers did not comment. Harrisburg lawyer Harvey Freedenberg of McNees, Wallace & Nurick said, "I am under strict instructions to refer questions to (lawyer Joseph A. Dougherty)." Dougherty of Rubin & Associates in Paoli did not return repeated telephone calls.

In a sworn affidavit, Fred DePalma, resident manager of Merrill Lynch's Camp Hill office, stated Hill signed a legal document in which he agreed not to compete for Merrill Lynch's customers for 90 days after quitting.

Hill had access to more than 675 accounts representing more than $32.1 million in assets under management. The accounts generated more than $220,000 in 1998 commission revenues alone, DePalma stated.

And Hill's new employer paid him "an up-front cash bonus of up to $90,000 and other incentives totaling as much as $200,000," DePalma stated.

On Aug. 10, U.S. District Justice William W. Caldwell issued a temporary restraining order against Hill. The order stated Hill violated the securities firm's rights to its confidential proprietary information and that the company would suffer "irreparable harm" if Hill were permitted to use the information for his own benefit and for the benefit of his new employer.

Caldwell also enjoined Hill from soliciting business from Merrill Lynch clients and from disclosing or transmitting client information.

The next day, Merrill Lynch filed a $25,000 bond with the court in Harrisburg in accordance with Caldwell's order.

But apparently Hill resolved his legal difficulty.

According to his lawyer, Philip Murren of Ball Skelly Murren & Connell, Camp Hill, the case was settled on Aug. 13 or Aug. 14. While he refused to disclose the terms of the settlement, citing confidentiality provisions, Murren said the temporary restraining order had been extended to Aug. 25. "Now it's only a question of Mr. Hill being fully free of the TRO (temporary restraining order) on Aug. 25," he said.

Conway said the restraining order does not preclude Hill from doing business and the company was "extremely happy" to have him as part of its team.

"He's very well respected and is a tremendous addition to our office," Conway said.

Conway said it is "not unusual in our industry for these suits to be settled quickly."