Insurance giant settles with executive it fired for testifying at the Legislature

Tim Donohue favored bill requiring more transparency for taxpayer financed insurance pools

An Illinois-based insurance company that fired a Sioux Falls executive after he testified at the Legislature has settled a lawsuit brought by the executive.

Timothy Donohue filed suit against Arthur J. Gallagher & Co., as well as its area president, Bob Jacobson, who was based in Des Moines, last year. Donohue testified on Jan. 25, 2022 at the Senate Commerce and Energy Committee on behalf of a bill that sought to bring more transparency to insurance pools used by local governments.

In March, Federal District Court Judge Karen Schreier declined a motion by Gallagher and Jacobson to dismiss the suit, finding that South Dakota has a substantial public policy that protects the rights of individuals who testify in officials legislative proceedings. That finding protects at-will employees from being fired.

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