H2O Hair, Inc. v. Marquette

960 So. 2d 250, 2007 WL 1427042
CourtLouisiana Court of Appeal
DecidedMay 15, 2007
Docket06-C-930, 07-CA-18
StatusPublished
Cited by11 cases

This text of 960 So. 2d 250 (H2O Hair, Inc. v. Marquette) 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
H2O Hair, Inc. v. Marquette, 960 So. 2d 250, 2007 WL 1427042 (La. Ct. App. 2007).

Opinion

960 So.2d 250 (2007)

H2O HAIR, INC.
v.
Lisa MARQUETTE and Corey Sanchez.

Nos. 06-C-930, 07-CA-18.

Court of Appeal of Louisiana, Fifth Circuit.

May 15, 2007.

*252 Frederic Theodore Le Clercq, Kelly L. Covington, Attorneys at Law, New Orleans, Louisiana, for Plaintiff/Appellee, H2o Hair, Inc.

Philip C. Ciaccio, Jr., Attorney at Law, Gretna, Louisiana, and Philip A. Wittmann, John M. Fezio, Michael Q. Walshe, Attorneys at Law, New Orleans, Louisiana, for Defendant/Appellant, Lisa Marquette.

Panel composed of Judges THOMAS F. DALEY, MARION F. EDWARDS, and SUSAN M. CHEHARDY.

CHEHARDY, Judge.

This decision involves a writ application and an appeal in a suit to enforce a noncompetition agreement. We previously consolidated the writ application with the appeal. In the appeal, defendant Lisa Marquette challenges a judgment that granted a permanent injunction in favor of H2O Hair, Inc., prohibiting Marquette from operating her business, a hair salon. The writ application concerns a post-judgment contempt ruling against Marquette for violation of the injunction. In the appeal, we affirm the judgment, but amend it to provide it is a preliminary rather than a permanent injunction. We grant the writ application in part, reverse in part the judgment on which the writ application is based, and withdraw our stay order previously issued.

On August 4, 2006, H2O Hair, Inc. ("H2O") filed suit against Lisa Marquette, seeking a temporary restraining order and preliminary and permanent injunctions against her for violation of a non-competition agreement, damages for breach of contract, and attorney's fees.[1]

The petition alleged that H2O Hair, Inc. "has operated under the trade names of H2O Salon & Spa, H2O Hair & Moore, Inc., H2O Salon, and H2O Spa." H2O also alleged it currently owns and operates a salon and day spa on Metairie Road in Metairie, Louisiana, and a salon in Mandeville, Louisiana. H2O asserted that the majority of its client base is located in Orleans, Jefferson, and St. Tammany parishes, "where H2O solicits and sells services directly and over the phone to these clients and also performs services to their clients in these areas, whether it be at the salon or on location."

H2O alleged it hired defendant Lisa Marquette as a stylist at the Metairie Road salon in 1994 and that Marquette entered into a Non-Competition Agreement in conjunction with her employment with H2O on October 25, 2000. H2O further alleged that Marquette's employment with H2O concluded on June 30, 2006, on which date "Marquette informed Heather Mahoney and Michael John Gaspard that she was planning to resign from H2O, had been thinking about it for sometime [sic], *253 and felt she needed to open her own business to invest in the future of her family."

According to the petition, Marquette also "admitted that while she was still employed at H2O, she sent out letters to clients of H2O informing them of her change in business and location; she had advised clients that were doing business with her in the H2O salon about her plans; and that she had copies of the names, addresses, and phone numbers of clients at home, which she had used for purposes of informing them of her future plans." Marquette told them her salon is Salon M, located on Canal Street in New Orleans, Louisiana.

In response, Marquette and Sanchez filed Exceptions of No Right and No Cause of Action. They asserted that H2O Hair, Inc. has no right of action against them because it was not a party to the non-competition agreement it seeks to enforce. They also asserted that the petition discloses no cause of action because the agreements "are in violation of La.R.S. 23:921 and therefore null and void," in that the petition asserts that H2O owns and operates a salon and day spa in Metairie and Mandeville; therefore, "[Once plaintiff does not carry on a like business in New Orleans, the provision contained in the non-competition agreement prohibiting exceptors from working in New Orleans is null and void and unenforceable."

A hearing took place on September 7, 2006. On September 28, 2006, the trial court rendered judgment that held the petition was moot as to the requests for temporary restraining order and preliminary injunction, granted the request for permanent injunction of two years as to Lisa Marquette, and denied the requests for damages and attorney's fees.

In written reasons for judgment, the trial court made the following findings:

The majority of H2O's clients come from Orleans, Jefferson, and St. Tammany parishes, and H2O solicits and sells services to clients in those areas.
* * *
On June 30, 2006, Marquette resigned from her employment at H2O, stating that she planned to open her own salon (Salon M). She also admitted that she had sent out letters to clients of H2O informing them of her change of business and location, and that she had used a list compiled by H2O of the names, addresses, and phone numbers of those clients in order to do so. Her new salon is located at 4336 Canal Street in New Orleans.
* * *
Defendants argue that Michael John Gaspard, an owner of H2O, testified that plaintiff does not have an occupational license to operate a salon in Orleans Parish, that plaintiff does not operate a spa or salon in the city, that it does not sell any of its products in the city, and that it does not remit sales taxes to the city. Gaspard did, however, testify that plaintiff obtained an occupational license in New Orleans to sell gift certificates there, and that H2O does perform offsite work in New Orleans pertinent to Mardi Gras balls and weddings. He admitted that this work makes up on 1% of H2O's total business, however. Finally, Gaspard testified that H2O did advertise its services in Orleans Parish via billboards and radio spots, gift certificates, and solicitation of customers over the telephone.
Testimony also was taken from various witnesses for the defense who, in total, made clear that H2O did very little, if any, offsite hairstyling/makeup work in New Orleans. This Court is *254 convinced that this type of work performed in Orleans Parish is minuscule compared to the salon activities performed by plaintiff in Jefferson Parish. What is integral to the success or failure of the non-competition agreements signed by defendants, however, is not this issue, but the issue of whether other activities performed by plaintiff in Orleans Parish are sufficient to satisfy the requirement of 23:921 that it carries on business in that parish similar to that being conducted by defendants there.
* * *
It appears clear from the record that (1) H2O solicits customers in both Jefferson and Orleans Parishes, and therefore conducts business in both parishes; and (2) defendant Marquette used H2O's customer list to solicit that same customer base in both Jefferson and Orleans Parishes. Further, Marquette provides the same services at Salon M to customers that H2O provides to customers at their salon. Taking into consideration the above caselaw, it appears clear that Marquette violated a valid non-competition agreement and that plaintiff is entitled to injunctive relief against her, restraining her from operating her own similar business in either Orleans or Jefferson Parishes, or from soliciting such business (especially via the use of H2O's customer list) in those parishes.
* * *
[S]ince La.R.S.

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

Related

Delta Fuel Co Inc v. Abbott
W.D. Louisiana, 2019
Wechem, Inc. v. Evans
274 So. 3d 877 (Louisiana Court of Appeal, 2019)
Yorsch v. Morel
223 So. 3d 1274 (Louisiana Court of Appeal, 2017)
West Carroll Health System, L.L.C. v. Tilmon
92 So. 3d 1131 (Louisiana Court of Appeal, 2012)
Yur-Mar, LLC v. Jefferson Parish Council
90 So. 3d 1137 (Louisiana Court of Appeal, 2012)
Restored Surfaces, Inc. v. Sanchez
82 So. 3d 524 (Louisiana Court of Appeal, 2011)
USI Insurance Services, LLC v. Tappel
28 So. 3d 419 (Louisiana Court of Appeal, 2009)
Century 21 Richard Berry & Associates, Inc. v. Lambert
8 So. 3d 739 (Louisiana Court of Appeal, 2009)
Bell v. RIMKUS CONSULTING GROUP, INC. OF LOUISIANA
8 So. 3d 64 (Louisiana Court of Appeal, 2009)
Novelaire Technologies, LLC v. Harrison
994 So. 2d 57 (Louisiana Court of Appeal, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
960 So. 2d 250, 2007 WL 1427042, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h2o-hair-inc-v-marquette-lactapp-2007.