Wied v. TRCM, LLC

698 So. 2d 685, 1997 WL 435025
CourtLouisiana Court of Appeal
DecidedJuly 24, 1997
Docket30106-CA
StatusPublished
Cited by25 cases

This text of 698 So. 2d 685 (Wied v. TRCM, LLC) 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
Wied v. TRCM, LLC, 698 So. 2d 685, 1997 WL 435025 (La. Ct. App. 1997).

Opinion

698 So.2d 685 (1997)

Jesse WIED, Plaintiff-Appellant,
v.
TRCM, LLC, Defendant-Appellee.

No. 30106-CA.

Court of Appeal of Louisiana, Second Circuit.

July 24, 1997.

*686 George M. Snellings, IV, Monroe, for Plaintiff-Appellant.

Kimberly O. Golden, Monroe, for Defendant-Appellee.

Before MARVIN, NORRIS and WILLIAMS, JJ.

NORRIS, Judge.

The plaintiff, Jesse Wied, unsuccessfully sought a declaratory judgment and to enjoin arbitration of an employment agreement. Arbitration is apparently scheduled for July 28, 1997; Wied has moved for expedited consideration of this appeal. We have the complete record before us, with the benefit of full briefing. The interest of justice will be best served by reviewing Wied's claims prior to the date of the arbitration hearing. Thus we grant the motion for expedited consideration, deny oral argument, and elect to dispose of the merits of this appeal by summary disposition. *687 See URCA 2-11.2, 11.3. On the merits, we affirm.

Facts and procedural history

Wied, a physical therapist, signed an employment agreement ("Agreement") with TRCM, a provider of outpatient physical therapy and rehab services, in 1995. Section 6 of the Agreement consisted of a noncompetition clause which provided in pertinent part:

[Wied] covenants and agrees with [TRCM] that he shall not compete directly or indirectly with [TRCM], either during the term of his employment or during the two year period immediately thereafter and shall not during such period make public statements in derogation of [TRCM.] * * * Competing directly or indirectly with [TRCM] shall mean engaging or having a material interest, directly or indirectly, as owner, employee, officer, director, partner, member, manager, venturer, stockholder, capital investor, consultant, agent, principal, advisor or otherwise, either alone or in association with others, in the operation of any entity engaged in the business of outpatient rehabilitation, physical therapy, or work hardening services within the following parishes: Bienville, Bossier, Caddo, Caldwell, Catahoula, Claiborne, East Carroll, Franklin, Lincoln, Madison, Morehouse, Ouachita, Rapides, Richland, Union, West Carroll, and Winn.

Section 13 of the Agreement, the severability clause, provided:

If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a duly authorized court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

Section 8 of the Agreement, the "blue pencil" provision, provided in pertinent part:

If any part or parts of Section 6 [the noncompetition clause] * * * shall be held to be unenforceable or invalid, the remaining parts thereof shall nevertheless continue to be valid and enforceable as though the invalid portion or portions were not a part hereof. If any of the provisions of Section 6 * * * relating to the periods or geographic area of restriction shall be deemed to exceed the maximum periods of time or area which a court of competent jurisdiction would deem enforceable, the times and area shall, for the purposes of Section 6[,] * * * be deemed to be the maximum time periods and area which a court of competent jurisdiction would deem valid and enforceable in any state in which such court of competent jurisdiction shall be convened.

Finally, Section 18 of the Agreement provided in pertinent part:

Any controversy or claim arising out of or relating to this Agreement shall be settled by binding arbitration in accordance with the rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof, subject to the following terms, conditions and exceptions: * * *
(c) The jurisdiction of the arbitrator and the arbitrability of any issue raised by the parties shall be decided by the arbitrator in the first instance.

TRCM terminated Wied's employment in February 1996, and later allegedly learned that Wied was violating the noncompetition clause. TRCM filed a demand for arbitration, seeking reimbursement for salary and benefits paid under Wied's contract, and payment of all revenues received by Wied for alleged "moonlighting" during the period of his employment at TRCM. The demand also sought payment of all revenues received by Wied since the termination of his employment from sources in competition with TRCM, and a temporary and permanent injunction from further competition in violation of the employment contract.

Wied filed the instant petition seeking a preliminary injunction to stay arbitration, pending the district court's determination of the validity and enforceability of the Employment *688 Agreement. He also sought a declaratory judgment that the Agreement was "null, void, invalid and unenforceable."

TRCM filed a dilatory exception of prematurity arguing that Wied had failed to complete arbitration, admitted the arbitrator's jurisdiction and substantially participated in the arbitration proceeding. TRCM also argued that the Agreement provided that the arbitrator should decide in the first instance the jurisdiction of the arbitrator and the arbitrability of any issue raised by the parties, and that the validity of the contract was pled by Wied and pending before the arbitrator.

The trial court heard Wied's petition for preliminary injunction and TRCM's exception of prematurity together. The court denied the request for preliminary injunction, and sustained TRCM's exception of prematurity. Wied unsuccessfully sought supervisory writs. He now appeals devolutively.

Discussion: Requirement of arbitration

La.R.S. 9:4201 provides:

A provision in any written contract to settle by arbitration a controversy thereafter arising out of the contract, or out of the refusal to perform the whole or any part thereof, or an agreement in writing between two or more persons to submit to arbitration any controversy existing between them at the time of the agreement to submit, shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.

The failure of a party to arbitrate in accordance with the terms of an agreement may be raised either through a dilatory exception of prematurity demanding dismissal of the suit or by a motion to stay the proceedings pending arbitration. Folkland v. Thomson McKinnon Securities Inc., 484 So.2d 310, 314 (La.App. 3d Cir.1986); State, Through Division of Admin. v. Algernon Blair Inc., 415 So.2d 612 (La.App. 3d Cir. 1982). TRCM filed a dilatory exception of prematurity. See La. C.C.P. art. 926A(1).

When the issue of failure to arbitrate is raised by the exception pleading prematurity, the defendant pleading the exception has the burden of showing the existence of a valid contract to arbitrate, by reason of which the judicial action is premature. Cook v. AAA Worldwide Travel Agency, 360 So.2d 839 (La.1978).

The arbitration clause in Wied's employment Agreement, § 18, provided that "[a]ny controversy or claim arising out of or relating to this Agreement

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Cite This Page — Counsel Stack

Bluebook (online)
698 So. 2d 685, 1997 WL 435025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wied-v-trcm-llc-lactapp-1997.