SWAT 24 Shreveport Bossier, Inc. v. Bond

759 So. 2d 1047, 2000 La. App. LEXIS 1120, 2000 WL 563048
CourtLouisiana Court of Appeal
DecidedMay 10, 2000
Docket33,328-CA
StatusPublished
Cited by6 cases

This text of 759 So. 2d 1047 (SWAT 24 Shreveport Bossier, Inc. v. Bond) 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
SWAT 24 Shreveport Bossier, Inc. v. Bond, 759 So. 2d 1047, 2000 La. App. LEXIS 1120, 2000 WL 563048 (La. Ct. App. 2000).

Opinion

759 So.2d 1047 (2000)

SWAT 24 SHREVEPORT BOSSIER, INC., Plaintiff-Appellant,
v.
Robbie BOND, Defendant-Appellee.

No. 33,328-CA.

Court of Appeal of Louisiana, Second Circuit.

May 10, 2000.

*1048 Cook, Yancey, King & Galloway by Bryce J. Denny, J. Todd Benson, Shreveport, Counsel for Appellant.

Tommy K. Cryer, Shreveport, Counsel for Appellee.

Before BROWN and GASKINS, JJ. and SAMS, Judge Pro Tem.

GASKINS, J.

The plaintiff, SWAT 24 Shreveport Bossier, Inc. (SWAT), appeals a trial court judgment refusing to grant the company injunctive relief in the enforcement of a noncompetition agreement with the defendant, Robbie Bond. For the following reasons, we affirm the trial court judgment.

FACTS

SWAT is a construction company that performs insurance restoration work following fires, water damage, hail storms or other similar occurrences. The defendant was initially employed with SWAT as a carpenter and eventually worked his way up to a production manager position. In connection with that promotion, on January 14, 1998, the defendant entered into an employment contract with SWAT which contained a noncompetition clause. Under the terms of the clause, the defendant was obligated not to compete with the plaintiff for two years following termination of his employment with the plaintiff. The pertinent portion of the contract is as follows:

In exchange for giving him confidential and proprietary information or trade secrets to be used in his employment, Employee covenants and agrees that during his employment and for a period of two (2) years following the termination of his employment and for whatever reason, he will not, within the parishes of Caddo, Bossier, Webster, Claiborne, Lincoln, Union, Jackson, Ouachita, Desoto, Red River, Sabine, Bienville, Winn, Caldwell parishes of Louisiana and the municipalities of Shreveport-Bossier, Coushatta, Monroe, Louisiana and East Texas and Southern Arkansas;
a. Directly or indirectly, engage in competition with SWAT 24 Shreveport Bossier, Inc., or serve as an officer, employee, director, agent or consultant of any business, which is in direct or indirect competition with SWAT 24 Shreveport Bossier, Inc.
b. Request or cause any employee of SWAT 24 Shreveport Bossier, Inc., to terminate his or her employment with SWAT 24 Shreveport Bossier, Inc., (unless such actions are with the Employee's authority as SWAT 24 Shreveport Bossier, Inc.); or
c. Offer to employ, employ or enter any business relationship with any employees employed by [sic] during Employees' employment.

SWAT claimed that on June 19, 1998, Mr. Bond resigned his position to work for National Restoration Services (NRS), a company that also performed insurance restoration work in the area. According to the plaintiff, on July 11, 1998, a customer, Buddy Camp, signed a contract with SWAT for restoration work. At some point, Mr. Camp spoke with the defendant and learned that Mr. Bond worked for NRS, not SWAT. Mr. Camp then canceled the contract with SWAT and entered into a contract with NRS to make repairs. On August 14, 1998, SWAT filed a petition for preliminary and permanent injunctive relief and damages, claiming that the defendant violated the noncompetition agreement by working for NRS.

The defendant filed an answer and reconventional demand, denying SWAT's claims and asserting that he is owed $2,600.00 in unpaid wages, $47,287.50 in overtime pay, $41,498.82 in unpaid bonuses and $3,212.50 in personal equipment that was not returned or replaced by SWAT.

A hearing on the plaintiff's petition for injunction was held on March 18, 1999. The parties agreed to enter into evidence the employment contract and a deposition *1049 given by Mr. Bond. William Jeffrey Cowley, the former chief operating officer at SWAT, testified regarding the nature of the business. Mr. Bond testified as to his job duties while employed with SWAT.

On June 22, 1999, the trial court entered judgment in favor of the defendant, denying the plaintiff's claim for injunctive relief. As to the reconventional demands raised by Mr. Bond, the court reserved those issues. In reasons for judgment, the court stated that La. R.S. 23:921 generally prohibits noncompetition agreements except in very limited circumstances set forth in the statute. The trial court then noted that this court considered a similar noncompetition agreement in Summit Institute for Pulmonary Medicine and Rehabilitation, Inc. v. Prouty, 29,829 (La. App.2d Cir.4/9/97), 691 So.2d 1384, writ denied, 97-1320 (La.9/26/97), 701 So.2d 983. In Summit, supra, this court concluded that the language of the agreement under consideration there was a nullity because it was overbroad and went beyond the limited exception provided by the statute by preventing an employee's employment in any capacity with employers in the same field. In the case at hand, the trial court found that the noncompetition clause prohibits the defendant from becoming an employee of a competitor, going beyond the exception provided by the statute. Therefore, the trial court found the clause to be null and void. The plaintiff appealed the trial court judgment.

DISCUSSION

The plaintiff claims that the trial court erred in denying its petition for injunctive relief and in finding that the noncompetition agreement at issue here is null and void. The plaintiff contends that under La. R.S. 23:921(C), a covenant not to compete is lawful if it identifies the parishes and municipalities to which it applies, the employer is carrying on a like business there and the agreement does not exceed two years from the termination of employment. The plaintiff argues that the covenant at issue here complies with these requirements.

The plaintiff also urges that the trial court erred in relying upon Summit Institute for Pulmonary Medicine and Rehabilitation, Inc. v. Prouty, supra. SWAT contends that the case does not apply because in Summit, the employee completely changed positions.[1] In this case, Mr. Bond was a production manager with both SWAT and NRS.

SWAT argues against the application of Summit and contends that at least one appellate court has rejected our reasoning in that case, citing Scariano Brothers, Inc. v. Sullivan, 98-1514 (La.App. 4th Cir. 9/16/98), 719 So.2d 131, writ denied, 98-2588 (La.11/6/98), 727 So.2d 452. According to SWAT, Summit presents too narrow an interpretation of La. R.S. 23:921(C). If Summit is applicable to this case, then SWAT urges that this court should reconsider its holding.

A covenant not to compete contained in an employment agreement is disfavored in Louisiana because it may function to deprive a person of his livelihood. Such a covenant will be enforced only if it meets narrowly drawn criteria. Sentilles Optical Services, Division of Senasco, Inc. v. Phillips, 26,594 (La.App.2d Cir.3/1/95), 651 So.2d 395. The narrow exceptions for a valid noncompetition agreement are set forth in La.R.S. 23:921(C).

La. R.S. 23:921 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, *1050 except as provided in this Section, shall be null and void....
C.

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Cite This Page — Counsel Stack

Bluebook (online)
759 So. 2d 1047, 2000 La. App. LEXIS 1120, 2000 WL 563048, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swat-24-shreveport-bossier-inc-v-bond-lactapp-2000.