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Appellate Court Reverses the Trial Court on the Duration of Employee’s Non-Compete, Allowing Client to Pursue His Trade

Appellate Court Reverses the Trial Court on the Duration of Employee’s Non-Compete, Allowing Client to Pursue His Trade

The Louisiana Court of Appeal, Fourth Circuit, reversed a trial court judgment against our client that would allow an employer’s alleged non-compete agreement to unlawfully enjoin him from working for two years from the date of judgment.

Mr. Smith’s last assignment of error argues the judgment, which preliminarily enjoins Mr. Smith from working for RCC or any other competing business, is facially unlawful because it is beyond a period of two years from termination of employment, the statutory duration permitted by La. R.S. 23:921(C) for non-compete agreements. This assignment of error has merit.

Smith v. Com. Flooring Gulf Coast, L.L.C., 2019-0502 (La. App. 4 Cir. 10/9/19)

In this case, in addition to the other arguments against the validity and enforceability of the employer’s non-compete agreement, the employer attempted to improperly enforce a non-compete agreement beyond maximum duration allowed by law. See La. R.S. 23:1292(C).

The effect of this favorable ruling allowed our client to continue in his trade and earn a living.

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