Advanced Medical Rehab, L.L.C. (AMR), is a marketing company that represents several medical clinics in Louisiana and markets the medical services of those clinics to personal injury law firms. When AMR learned that Shelby Manton, who formerly had performed marketing services for AMR, had joined another company that allegedly competed with AMR’s business, AMR filed suit to enforce Manton’s noncompetition agreement. AMR sought a temporary restraining order against Manton, who had joined LA Health Solutions, a licensed healthcare provider network that provides medical treatment to patients. Manton’s contract with AMR contained a noncompetition clause that the trial court in Advanced Medical Rehab, L.L.C. v. Manton held to be “overbroad, overreaching and in violation of public policy” and in violation of each of the three requirements of Louisiana’s noncompetition statute, La. R.S. 23:291: “(1) a two-year maximum duration, (2) a list of the areas in which the former employee is restrained,” and (3) that the former employee works for a business that competes with the business of the former employer. AMR timely appealed, seeking review of the trial court’s judgments.
The Louisiana Court of Appeal, Fifth Circuit, affirmed the trial court’s rulings regarding the noncompete provision. First, the court held that the noncompetition agreement, which prohibited Manton from being an “ … employee … with any business (other than Advanced, or an affiliate) engaged to any extent in the...
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https://www.natlawreview.com/article/louisiana-appellate-court-reminds-employ...