Brown & Root Industrial Services, LLC v. Anthony E. Farris, Jr., Kevin D. Steed, and Fides Consulting, LLC

CourtLouisiana Court of Appeal
DecidedJune 27, 2024
Docket2023CA0706
StatusUnknown

This text of Brown & Root Industrial Services, LLC v. Anthony E. Farris, Jr., Kevin D. Steed, and Fides Consulting, LLC (Brown & Root Industrial Services, LLC v. Anthony E. Farris, Jr., Kevin D. Steed, and Fides Consulting, LLC) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown & Root Industrial Services, LLC v. Anthony E. Farris, Jr., Kevin D. Steed, and Fides Consulting, LLC, (La. Ct. App. 2024).

Opinion

STATE OF LOUISIANA COURT OF APPEAL FIRST CIRCUIT NO. 2023 CA 0706

BROWN & ROOT INDUSTRIAL SERVICES, LLC

VERSUS ANTHONY E. FARRIS, JR., KEVIN D. STEED, AND FIDES CONSULTING, LLC JUN 27 2024 CM \A\ Judgment Rendered: * OK OK KOR

on Ly On Appeal from the MM 19th Judicial District Court In and for the Parish of East Baton Rouge

mm b 4 State of Louisiana S ( \ it Trial Court No. 705222

Honorable Donald R. Johnson, Judge Presiding

ok OK OK OK Eric R. Miller Attorneys for Plaintiffs-Appellants, Christine S. Keenan Brown & Root Industrial Services, Elizabeth B. Bloch LLC & Bris Engineering, LLC Baton Rouge, LA -and- Mary Jo L. Roberts Alexander C. Landin New Orleans, LA John A. Moore Attorneys for Defendants-Appellees, Edward D. Hughes Anthony E. Farris, Jr., Kevin D. Steed, Jonathan A. Moore Jaeson M. Brown, Jeffrey M. Hebert, Savannah W. Smith Robert A. Huval, Mitchell M. Morgan, Preston J. Castille, Jr. David E. Sterken, and Fides Consulting, Baton Rouge, LA LLC

ok KOK

BEFORE: McCLENDON, HESTER, AND MILLER, JJ. HESTER, J.

This is an appeal from the trial court’s grant of partial summary judgment, finding the non-solicitation of employees provision of a separation agreement violative of established public policy. For the reasons that follow, we affirm the judgment of the trial court.

FACTS AND PROCEDURAL HISTORY

In September of 2020, Kevin Steed learned that his employment with BRIS Engineering, LLC (“BRIS Engineering”) would be terminated.! On October 1, 2020, Steed and Brown & Root Industrial Services, LLC (“BRIS”) signed a separation agreement and release (“Agreement”). The stated reasons for the Agreement were as follows:

1. Your employment with the Company will end on October 16, 2020[;]

2. On the next payroll date following October 12, 2020, the Company will pay you all wages earned through October 16, 2020, including payment for any accrued but unused vacation; and

3. The Company will provide you with additional severance payments and benefits below, but only if you sign this Release to promise not to bring legal action against the Company with respect to your employment or termination of employment with the Company].|

The term “Company” included BRIS, “its parent, subsidiary and affiliated entities.” Thereafter, the Agreement provided a series of promises to which the

“Company” and Steed agreed. “Promise Number 1” was BRIS’s promise to pay

Steed a lump sum severance payment representing twelve weeks of salary,

equivalent to the gross amount of $75,000.00 after Steed signed the Agreement.

“Promise Number 9” provided that, in exchange for the sums paid to Steed pursuant

to Promise No. 1, Steed would not solicit, encourage, or cause any “Protected

' According to the Third Supplemental and Amended Petition, BRIS Engineering is a wholly owned subsidiary of Brown & Root Industrial Services, LLC, which provides a full range of industrial services to chemical/petrochemical, refining and other plant sites and facilities.

2 Employee” to terminate his or her employment with the “Company” and accept employment at a competitor organization at which Steed works or has an ownership interest. “Protected Employee” in Promise Number 9 was defined as “any individual employed by the Company within the last twelve (12) months of [Steed’s] employment with the Company.”

Steed began working for CSRS, Inc. (“CSRS”) in December of 2020 and began working for Fides Consulting, LLC (“Fides Consulting”) in February of the following year. In November of 2020 and February of 2021, a number of BRIS Engineering employees separated from the company, including a senior consultant, a piping design manager, a project controls manager, an “E&I Manager,” a senior consulting engineer, and a project management manager. Subsequently, these former employees of BRIS Engineering began working for Fides Consulting.

BRIS filed suit on March 3, 2021, naming as defendants, Anthony E. Farris, Jr., Steed, and Fides Consulting, initially alleging civil conspiracy and breach of contract, which included claims against Steed for violations of Promise Number 9. BRIS alleged that Steed recruited, attempted to persuade, and hired protected employees in violation of the Agreement. Thereafter, BRIS filed three subsequent supplemental and amended petitions adding parties as well as adding additional claims for relief. In the second supplemental and amended petition, BRIS Engineering was added as a plaintiff, and former employees of BRIS Engineering were named as defendants. In the third supplemental and amended petition, BRIS and BRIS Engineering alleged that the Agreement signed by Steed is a valid and enforceable contract and that the Agreement prohibited Steed from soliciting their employees. Particularly, BRIS and BRIS Engineering alleged that Steed violated the Agreement by “directly or indirectly soliciting or hiring employees of BRIS

Engineering, including having direct solicitation or hiring through employee(s), officer(s), director(s), agent(s), or those acting in concert for CSRS and/or Fides Consulting LLC in soliciting and hiring employees of BRIS Engineering.”

On June 13, 2022, Steed moved for partial summary judgment to dismiss BRIS and BRIS Engineering’s claims against him for breach of Promise Number 9 — the employee non-solicitation provision of the Agreement — asserting that the provision was invalid and unenforceable.” Specifically, Steed asserted that the policy principles underlying La. R.S. 23:921, which prohibits contracts, agreements, or provisions thereof from restraining a person from exercising a lawful possession, trade, or business of any kind, except as provided for in the statute, apply by analogy to the non-solicitation of employee clause in Promise Number 9 of the Agreement. Steed noted that Promise Number 9 is not reasonably limited in scope and is not reasonably limited in duration. In support of his motion for summary judgment, Steed attached BRIS and BRIS Engineering’s third supplemental and amended petition; the affidavit of Steed, which included the Agreement; and the deposition of Andy Dupuy, the President and Chief Executive Officer of BRIS.

BRIS and BRIS Engineering opposed the motion, asserting that the employee non-solicitation provision of the Agreement was valid and enforceable. BRIS and BRIS Engineering did not object to the recitation of the uncontested material facts as provided by Steed.’ BRIS and BRIS Engineering argued that Promise Number 9

was clear as written, did not lead to absurd consequences, and no further

* Louisiana Code of Civil Procedure article 966 was amended by La. Acts 2023, No. 317, § 1; La. Acts 2023, No. 368, § 1, effective August 1, 2023, which amendments were substantive and cannot be applied retroactively. See La. Code Civ. P. art. 966, Comments — 2023, Comment (f); Ricketson v. McKenzie, 2023-0314 (La. App. Ist Cir. 10/4/23), So.3d_,___, 2023 WL 7037495, *4. Therefore, we apply the version of La. Code Civ. P. art. 966 in effect at the time the motion for summary judgment was submitted and heard.

3 BRIS and BRIS Engineering did list a singular contested fact: “Kevin Steed’s Separation Agreement & Release includes an agreement not to solicit Plaintiffs’ employees and is not a non- competition agreement.” However, Steed expressly did not dispute that Promise Number 9 is an employee non-solicitation agreement and correctly noted that whether or not Promise Number 9 is a non-competition agreement as described in in the provisions of La. R.S. 23:921 is a question of law. interpretation was required. Moreover, BRIS and BRIS Engineering argued that even if Promise Number 9 was found to be vague or ambiguous, Promise Number 14 of the Agreement provided that the court has authority to reform the Agreement.

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Bluebook (online)
Brown & Root Industrial Services, LLC v. Anthony E. Farris, Jr., Kevin D. Steed, and Fides Consulting, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-root-industrial-services-llc-v-anthony-e-farris-jr-kevin-d-lactapp-2024.