Trost v. O'CONNOR

893 So. 2d 974, 2005 WL 233782
CourtLouisiana Court of Appeal
DecidedFebruary 2, 2005
Docket2004-1172
StatusPublished
Cited by1 cases

This text of 893 So. 2d 974 (Trost v. O'CONNOR) 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
Trost v. O'CONNOR, 893 So. 2d 974, 2005 WL 233782 (La. Ct. App. 2005).

Opinion

893 So.2d 974 (2005)

Robert Butch TROST, Sr., d/b/a Lake Area Insulation, Drywall and Painting
v.
Donald O'CONNOR.

No. 2004-1172.

Court of Appeal of Louisiana, Third Circuit.

February 2, 2005.

*975 Oliver Schrumpf, Schrumpf & Schrumpf, Sulphur, LA, for Plaintiff/Appellee, Robert Butch Trost, Sr.

Timothy O'Dowd, Lake Charles, LA, for Defendant/Appellant, Donald O'Connor.

Court composed of JOHN D. SAUNDERS, MARC T. AMY, and MICHAEL G. SULLIVAN, Judges.

AMY, Judge.

The plaintiff filed suit seeking an injunction, enforcing a noncompetition agreement it contends was entered into with the defendant. The trial court granted the permanent injunction. The defendant appeals, asserting that he entered into a noncompetition agreement with the plaintiff, acting individually, not with the plaintiff insofar as it is a corporation. For the following reasons, we affirm.

Factual and Procedural Background

This case involves the validity of a noncompetition agreement. At issue is a July 2001 noncompetition agreement entered into between the defendant, Donald O'Connor, and the business for which he worked as an independent contractor, Lake Area Insulation, Drywall and Painting. Lake Area Insulation, Drywall and Painting is operated by Robert Butch Trost, Sr. Subsequent to the signing of the noncompetition agreement, Mr. O'Connor left his position and began performing similar job duties for his own business.

This matter was instituted in July 2003, when Robert Butch Trost, Sr. d/b/a Lake Area Insulation, Drywall and Painting, filed suit, seeking a temporary restraining order, a preliminary injunction, and ultimately a permanent injunction preventing Mr. O'Connor from engaging in a business similar to that of Lake Area Insulation, Drywall and Painting.

The trial court granted an August 2003 preliminary injunction in favor of Robert Butch Trost, Sr. d/b/a Lake Area Insulation, Drywall and Painting, enjoining and restraining Mr. O'Connor "from carrying on or engaging in his own competing business and/or from soliciting customers" of *976 Robert Trost, d/b/a Lake Area Insulation, Drywall and Painting, for the two-year period subsequent to July 7, 2003 and within a seventy-five-mile radius of Lake Charles. The record indicates that the preliminary injunction was entered into pursuant to stipulation of the parties.[1] At the subsequent hearing on the permanent injunction, Mr. O'Connor questioned the validity of the stipulation, asserting he did not authorize the attorney to enter into the stipulation.

Subsequently, in December 2003, the petition was amended to add as plaintiff a company in which Mr. Trost is the sole shareholder, Lake Area Supply, Inc. d/b/a Lake Area Insulation, Drywall and Painting.[2] Mr. O'Connor responded to the amended petition with an exception, wherein he asserted that Lake Area Supply, Inc., lacks privity to pursue the injunction. The identification of the party with whom Mr. O'Connor entered into the contract is at the heart of this proceeding.

A February 2004 hearing was held concerning the issuance of a permanent injunction. Primarily at issue was the identification of the party with whom Mr. O'Connor had entered into the noncompetition agreement. Mr. O'Connor asserted that he entered into the agreement with Mr. Trost only insofar as he did business as Lake Area Insulation, Drywall and Painting and that no such agreement existed with Lake Area Supply, Inc. d/b/a Lake Area Insulation, Drywall and Painting. Mr. O'Connor explained that, in his opinion, Mr. Trost's personal business and that of Lake Area Supply, Inc. were distinct entities. Mr. Trost asserted that Lake Area Supply, Inc. preexisted the signing of the noncompetition agreement and that the agreement, which was signed with Lake Area Insulation, Drywall and Painting, was effective, as this was a business name of Lake Area Supply, Inc.

The trial court granted the permanent injunction, providing the following reasons for ruling:

The Court is satisfied that DONALD O'CONNOR who was in trouble for misapplication of funds would have entered into any agreement that MR. TROST asked him to sign and whether or not it had been with ROBERT BUSH [sic] TROST, SR. individually, d/b/a LAKE AREA INSULATION, DRYWALL AND PAINTING, or LAKE AREA SUPPLY, INC., d/b/a LAKE AREA INSULATION AND DRYWALL AND PAINTING or someone else. MR. O'CONNOR knew that he was not to compete with MR. TROST and not to take his business. The name of the entity is irrelevant.
MR. O'CONNOR was not credible when he said the move to a competing business made a difference after the name change by TROST. He only came up with this defense after he changed lawyers. MR. O'CONNOR said that he did not approve is [sic] his lawyer entering into an agreement which granted an injunction. Other than MR. O'CONNOR's "self serving" testimony, there is nothing from his former lawyer to indicate whether or not there was approval before entering into the injunction.
*977 The Court feels that the injunction against MR. O'CONNOR should be maintained. The stipulation of counsel leaving damages open for another day.

The judgment memorializing the above reasons provided that the preliminary injunction is "hereby upheld, maintained, and made permanent in favor of plaintiffs Robert Butch Trost, Sr., and Lake Area Supply, Inc., d/b/a Lake Area Insulation, Drywall and Painting." The trial court specifically retained jurisdiction to hear any remaining damages issues.

Mr. O'Connor appeals, arguing that: 1) the trial court erred in enforcing the noncompetition agreement pursuant to La.R.S. 23:921 insofar as it was granted in favor of Lake Area Supply, Inc., as there was no written contract between him and Lake Area Supply, Inc., in which he is identified as an independent contractor; 2) the trial court erred in enforcing the noncompetition agreement in favor of Mr. Trost insofar as Mr. Trost testified that the agreement was in favor of Lake Area Supply, Inc. and not him personally; and 3) the trial court erred in failing to consider prior admissions of Mr. Trost as judicial confessions which would bar enforcement of the noncompetition agreement.

Discussion

Identity of Parties

Mr. O'Connor's argument in his brief to this court, as it did below, focuses upon his contention that he entered into a contract not to compete with Mr. Trost, only. Mr. O'Connor contends that, insofar as Mr. Trost testified that he no longer conducts business individually, but only does so through his corporation, Lake Area Supply, Inc., the agreement is ineffective. Mr. O'Connor alternatively argues that evidence is lacking that he entered into either an independent contractor relationship or a noncompetition agreement with Lake Area Supply, Inc. In either event, Mr. O'Connor contends, the noncompetition agreement is ineffective. In making his argument, Mr. O'Connor contests the trial court's statement that "[t]he name of the entity is irrelevant," and argues that the name of the identity of the contracting business is fundamental to the agreement so that it is discernable against whom he can longer compete.

La.R.S. 23:921 provides the statutory guidelines pertaining to a noncompetition agreement, indicating, in 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.

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Related

Trost v. O'CONNOR
955 So. 2d 246 (Louisiana Court of Appeal, 2007)
Robert Butch Trost, Sr. v. Donald O'Connor
Louisiana Court of Appeal, 2007

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Bluebook (online)
893 So. 2d 974, 2005 WL 233782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trost-v-oconnor-lactapp-2005.