Nursing Enterprises, Inc. v. Marr

719 So. 2d 524, 1998 La. App. LEXIS 2446, 1998 WL 483594
CourtLouisiana Court of Appeal
DecidedAugust 19, 1998
Docket30776-CA
StatusPublished
Cited by10 cases

This text of 719 So. 2d 524 (Nursing Enterprises, Inc. v. Marr) 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
Nursing Enterprises, Inc. v. Marr, 719 So. 2d 524, 1998 La. App. LEXIS 2446, 1998 WL 483594 (La. Ct. App. 1998).

Opinion

719 So.2d 524 (1998)

NURSING ENTERPRISES, INC., Plaintiff-Appellant,
v.
Susan Elizabeth MARR, et al., Defendants-Appellees.

No. 30776-CA.

Court of Appeal of Louisiana, Second Circuit.

August 19, 1998.

*526 Blackman & Perkins, L.L.C. by Gordon N. Blackman, Jr., A. Michelle Perkins, Shreveport, for Plaintiff-Appellant.

Schober, Reynolds & Antee by Kenneth R. Antee, Jr., Shreveport, for Defendants-Appellees.

Before BROWN, CARAWAY and PEATROSS, JJ.

PEATROSS, Judge.

In this suit for damages resulting from unfair trade practices in violation of LSA-R.S. 51:1401, et seq., a jury found that Defendant Susan Marr ("Susan") had committed unfair trade practices; that Plaintiff Nursing Enterprises, Inc. ("Nursing") made defamatory statements about Defendant Alan Marr ("Alan") in its petition; and that a temporary restraining order requested by Nursing was wrongfully issued. The jury awarded $18,000 to Nursing for the unfair trade practices by Susan; $9,000 to Alan for the defamation by Nursing; and $15,000 to Lifeline Nursing Company ("Lifeline") for the wrongful issuance of the TRO. The trial judge entered judgment in accordance with the jury's verdict and assessed 20% of the costs to Susan and 80% to Nursing. Nursing appeals the judgment of the trial court assigning as error the failure of the jury to award Nursing attorney fees against Susan, the inadequacy of the $18,000 award against Susan for her alleged unfair trade practices, the finding that Nursing defamed Alan in its petition and the finding of actual damages suffered by Lifeline as a result of the issuance of the temporary restraining order. Susan assigns as error the jury's finding that she committed unfair trade practices against Nursing. For the following reasons, we amend, affirm in part, reverse in part and render judgment.

FACTS

After moving to Shreveport in 1990 so that Alan, her husband and a medical doctor, could take a job at the Veteran's Administration Hospital, Susan began working for Willis-Knighton Medical Center as a per diem nurse. In November 1990, Susan began working for Nursing as its regional director. Nursing is a nurse staffing business that provides registered and licensed nurses to hospitals and other health care providers. Susan's job was to develop business relations with clients, recruit staff nurses and match these nurses with clients to fulfill the clients' staffing needs. Susan hired Carla Whitehead ("Carla") as Nursing's Clinical Director for the Shreveport office. Susan and Carla executed covenants not to compete with Nursing for a period of one year after termination of employment within a seventy-mile radius of the Shreveport office, and confidentiality agreements.

After some confusion regarding a possible promotion for Susan, she tendered her letter of resignation to Lanny Bernhardt, Nursing's vice president, stating that her final day of employment would be May 30, 1994. Due to her mother's illness, however, Susan's last day of employment with Nursing was May 20, 1994. In addition, Carla was requested by Nursing to tender her resignation and Carta's last day of work for Nursing was May 6, 1994.

Susan testified that on the night of May 6, 1994, she and Alan seriously discussed the formation of a new company to be called Lifeline. On May 9, 1994, Alan executed a lease for office space to house the new company and on May 14, Susan and Carla traveled *527 to Dallas to purchase office furniture. On May 18, 1994, a telephone was installed in the new office. During this time, Alan was allegedly consulting with his attorney about the incorporation of Susan's company, Lifeline. The Articles of Incorporation of Lifeline were executed by Susan on May 26, 1994. Susan hired Carla as vice president; and on June 12, 1994, Lifeline began staffing nurses for clients, which included former Nursing client Willis-Knighton Medical Center. Lifeline was in direct competition with Nursing, Susan's former employer. During July 1994, Lifeline's first full month of staffing nurses, the corporation's gross receipts equaled $97,569.50.

On June 10, 1994, Nursing filed suit against Susan, Alan, Carla and Lifeline requesting that a temporary restraining order and preliminary and permanent injunctions be issued to enjoin Lifeline from directly or indirectly competing with Nursing in accordance with the terms of the covenants not to compete which Susan and Carla executed with Nursing. Nursing also alleged in its petition that all client contracts, office supplies and financial data relating to operations of Nursing had been removed from the Shreveport office by unknown persons. Finally, Nursing sought damages resulting from the breach of the covenants not to compete.

A temporary restraining order was issued that same day prohibiting Defendants "from directly or indirectly soliciting any clients of Nursing Enterprises, Inc., within seventy-five (75) miles of the Shreveport office of Nursing...." Defendants answered the petition and in their reconventional demand sought damages for the wrongful issuance of the temporary restraining order.

On June 27, 1994, Alan and Lifeline filed a Peremptory Exception of No Cause of Action based on the covenants not to compete. On July 18, 1994, Nursing filed its First Supplemental and Amending Petition alleging that Susan and Carla Whitehead had violated the confidentiality agreements which both had entered into with Nursing and that the Defendants' activities were in violation of LSA-R.S. 51:1432 and 51:1401, et seq. By judgment dated July 28, 1994, the trial court dismissed with prejudice the requests for preliminary and permanent injunctions and also sustained the Exceptions of No Cause of Action filed by Alan and Lifeline with regard to Nursing's claims on the covenant not to compete agreements.

On December 8, 1994, Defendants filed an Answer and Reconventional Demand to Plaintiff's First Supplemental Petition. Alan alleged that Nursing had made defamatory statements about him in its original petition. Alan specifically pointed to the allegations that files and documents were missing from the Nursing office and that he was observed at Nursing's business premises on June 4, 1994, when the office was closed. Alan sought damages as a result of this defamation.

On March 27, 1996, Defendants moved for summary judgment alleging that the covenants not to compete were invalid and, therefore, Nursing had no cause of action. By judgment dated May 6, 1996, and amended judgment dated June 18, 1998, the trial court found that the covenants not to compete signed by Susan and Carla were "null and void ab initio" and dismissed all of Nursing's causes of action in contract. The amended judgment reserved all of Nursing's actions under the Louisiana Unfair Trade Practice and Consumer Protection Law. There was no appeal from either of these judgments.

After a four-day trial, the jury returned the verdict discussed above. The trial court entered judgment in accordance with the jury's verdict on March 8, 1997. Since we find merit in Susan's argument that the jury erred in finding she committed unfair trade practices, we will begin our discussion with this issue.

DISCUSSION

Unfair Trade Practices

LSA-R.S. 51:1405 states, in pertinent part:

A. Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.

*528 Acts which constitute unfair or deceptive practices are not specifically defined, but are determined on a case-by-case basis.

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Bluebook (online)
719 So. 2d 524, 1998 La. App. LEXIS 2446, 1998 WL 483594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nursing-enterprises-inc-v-marr-lactapp-1998.