A U.S. Appeals Court has upheld a lower court ruling that allows a former employee of the Mortgage Guaranty Insurance Corp. to jump ship to a rival mortgage insurer in Arkansas, a move that could have ramifications on employee no compete clauses that some mortgage insurance firms require.

The case, Mortgage Guaranty Insurance Corp. vs Republic Mortgage Insurance Corp.; Terry W. Landrum, Docket No. 94-2106, was appealed Aug. 5 and MGIC had sought an injunction to prevent Terry W. Landrum, formerly an account executive for the Milwaukee, Wis.-based insurer, from continuing his employment with Republic Mortgage Insurance Co., a Winston-Salem, N.C.-based firm operating in Arkansas and Oklahoma.

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