Family Care Services, Inc. v. Owens

46 So. 3d 234, 2010 La. App. LEXIS 1157, 2010 WL 3155827
CourtLouisiana Court of Appeal
DecidedAugust 11, 2010
Docket45,505-CA
StatusPublished
Cited by10 cases

This text of 46 So. 3d 234 (Family Care Services, Inc. v. Owens) 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
Family Care Services, Inc. v. Owens, 46 So. 3d 234, 2010 La. App. LEXIS 1157, 2010 WL 3155827 (La. Ct. App. 2010).

Opinion

GASKINS, J.

[, The defendants, Brenda Owens and Robin Matthews, appeal from a trial court judgment that awarded the plaintiff, Family Care Services, Inc., attorney fees in the amount of $43,160.50 and costs in the amount of $10,212.98, in connection with the grant of a preliminary injunction. The plaintiff has answered the appeal, seeking additional attorney fees for defending this appeal. For the following reasons, we affirm the trial court judgment. We reject the plaintiffs request for additional attorney fees on appeal.

FACTS

Brenda Owens (“Owens”) and Robin Matthews (“Matthews”) were employees of Family Care Services, Inc. (“FCS”), a Louisiana corporation that provides services for elderly and developmentally disabled adults. Both Owens and Matthews signed employment agreements, which contained non-competition, non-solicitation, and confidentiality provisions enforceable for two years after separation from employment. 1

*237 laOwens was employed by FCS from June 24, 2002, to March 18, 2008. Immediately after resigning from FCS, Owens applied for and was hired by Certicare, *238 Inc. (“Certicare”), 2 a direct competitor of FCS. Matthews was employed by FCS from April 3, 2007, to November 2, 2007; she began to work with Certicare on November 12, 2007.

FCS filed a motion for a preliminary injunction in April 2008, alleging that Owens and Matthews had violated the terms of their employment agreements. FCS later amended its petition to request damages, attorney fees, and costs as allowed in the contract with the defendants. A hearing on the preliminary injunction was held in November 2008. In April 2009, the trial court signed a preliminary injunction enjoining Owens and Matthews from soliciting clients of FCS, from soliciting current or former employees of FCS for employment with Certicare, and from continuing employment with Certicare in any capacity in which their duties would be substantially similar to their duties performed while employed by FCS. The trial court scheduled the trial on the permanent injunction for November 2009.

In June 2009, FCS filed a motion for an award of attorney fees and costs related to the issuance of the preliminary injunction. At the November 2009 trial, FCS dismissed its request for a permanent injunction against Owens since she was abiding by the April 23, 2009, judgment and only four months remained in her two-year non-competition agreement. FCS dismissed its request for a permanent injunction against Matthews since her |4 employment with FCS had terminated more than two years prior to the date of the trial. Therefore, the two-year term on her non-competition and non-solicitation agreement with FCS had expired, mooting the plaintiffs request for injunctive relief. FCS also dismissed its claim for damages.

The trial court heard arguments from the parties on attorney fees and costs in connection with obtaining the preliminary injunction. On December 4, 2009, the trial court issued a judgment ordering Owens and Matthews to pay FCS attorney fees in the amount of $43,160.50 and costs in the amount of $10,212.98. Owens and Matthews appealed.

SECURITY FOR PRELIMINARY INJUNCTION

The defendants argue that the trial court erred by issuing a preliminary injunction against them to enforce the agreement at issue here without setting and requiring FCS to post the statutorily required security. This argument is without merit.

Legal Principles

Non-competition agreements in Louisiana are governed by La. R.S. 23:921, which provides in pertinent part:

A. (1) Every contract or agreement, or provision thereof, by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, except as provided in this Section, shall be null and void. 3
[[Image here]]
*239 |SC. Any person, including a corporation and the individual shareholders of such corporation, who is employed as an agent, servant, or employee may agree with his employer to refrain from carrying on or engaging in a business similar to that of the employer and/or from soliciting customers of the employer within a specified parish or parishes, municipality or municipalities, or parts thereof, so long as the employer carries on a like business therein, not to exceed a period of two years from termination of employment. An independent contractor, whose work is performed pursuant to a written contract, may enter into an agreement to refrain from carrying on or engaging in a business similar to the business of the person with whom the independent contractor has contracted, on the same basis as if the independent contractor were an employee, for a period not to exceed two years from the date of the last work performed under the written contract.
D. For the purposes of Subsections B and C, a person who becomes employed by a competing business, regardless of whether or not that person is an owner or equity interest holder of that competing business, may be deemed to be carrying on or engaging in a business similar to that of the party having a contractual right to prevent that person from competing.
[[Image here]]
H. Any agreement covered by Subsection B, C, E, F, G, J, K, or L of this Section shall be considered an obligation not to do, and failure to perform may entitle the obligee to recover damages for the loss sustained and the profit of which he has been deprived. In addition, upon proof of the obligor’s failure to perform, and without the necessity of proving irreparable injury, a court of competent jurisdiction shall order in-junctive relief enforcing the terms of the agreement....

Regarding injunctive relief, La. C.C.P. art. 3601 provides in pertinent part:

A. An injunction shall be issued in cases where irreparable injury, loss, or damage may otherwise result to the applicant, or in other cases specifically provided by law;....
C. During the pendency of an action for an injunction the court may issue a temporary restraining order, a preliminary injunction, or both, except in cases where prohibited, in accordance with the provisions of this Chapter.
IfiD. Except as otherwise provided by law, an application for injunctive relief shall be by petition.

Discussion

Even though there is no dispute that the agreement at issue here complies with La. R.S. 23:921, the defendants argue that the trial court erred in granting a preliminary injunction without requiring the plaintiff to post security. It is questionable whether this argument is properly before the court for decision. A preliminary injunction is an appealable judgment under La. C.C.P. art. 3612. Such an appeal must be taken within 15 days from the date of the order or judgment. The defendants in this matter did not appeal from the granting of the preliminary injunction. Therefore, the preliminary injunction became final.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jacobs v. Geico Indem. Co.
256 So. 3d 449 (Louisiana Court of Appeal, 2018)
Gloria's Ranch, L.L.C. v. Tauren Exploration, Inc.
223 So. 3d 1202 (Louisiana Court of Appeal, 2017)
Skannal v. Jones Odom Davis & Politz, L.L.P.
124 So. 3d 500 (Louisiana Court of Appeal, 2013)
Christopher White v. State Farm Mutual Auto Ins Co
479 F. App'x 556 (Fifth Circuit, 2012)
Richland Parish Police Jury v. Debnam
92 So. 3d 487 (Louisiana Court of Appeal, 2012)
Strong v. Eldorado Casino Shreveport Joint Venture
73 So. 3d 967 (Louisiana Court of Appeal, 2011)
Rent-A-center East, Inc. v. Lincoln Parish Sales & Use Tax Commission
60 So. 3d 95 (Louisiana Court of Appeal, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
46 So. 3d 234, 2010 La. App. LEXIS 1157, 2010 WL 3155827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/family-care-services-inc-v-owens-lactapp-2010.