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Topic: Louisiana Noncompete Agreements

Devil inside the Deal: An Examination of Louisiana Noncompete Agreements in Business Acquisitions

Albert O. “Chip” Saulsbury, IV | Article

In a noncompete agreement, one party agrees with another to refrain from engaging in a particular line of business or from soliciting customers of another person. Buyers in business acquisitions seek these covenants because sellers, when not restricted by an enforceable noncompete agreement, can destroy the value of the business sold through their own competitive acts. Over the past twenty years, Louisiana courts have inappropriately applied the “strong public policy” requiring strict construction of noncompete agreements in the employment context to all noncompete agreements, including those executed ancillary to the sale of a business. The application of this policy is [...]

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