Physician Non-Compete Agreements

Doctors, particularly specialists, routinely enter into non-compete agreements as part of employment or partnership agreements. Heated, and often expensive, legal disputes can arise when doctors want to leave one physician group for another or desire to form their own practice.

Requirements for Enforceability

Generally speaking, on its face, Louisiana’s non-compete statute seems reasonably clear and straightforward. LA. R.S. 23:921 essentially provides that every agreement that restrains someone from engaging in any profession, trade or business is null and void, unless the prohibition against competing meets one of the specific exceptions provided in 23:921. Non-competes are not enforceable in Louisiana, unless the non-compete clause or agreement fits within one of the statutorily-recognized exceptions. If a non-compete agreement is incorrectly drafted, then it is not enforceable.

Emergency Litigation Procedures

Enforcing such Non-compete agreements can lead to complex litigation where each side attempts to convince the court why the agreement should or should not be enforced. In many instances, the party seeking to enforce the agreement will suffer irreparable harm if it takes months or years to determine the enforceability of the agreement. By the time all is said and done, the practice could be ruined due to the patients and employees taken by the departing doctor.

Emergency litigation procedures such as temporary restraining orders (“TRO”) and preliminary injunctions exist for such circumstances. A court can enter a TRO enjoining (i.e. forbidding) the departing doctor from soliciting patients or employees for a short period of time so the parties can prepare for a preliminary injunction hearing. A preliminary injunction attempts to preserve the status quo during the pendency of the remainder of the litigation. It usually achieves this by requiring the departing physician to abide by the terms of the non-compete until there is a final judgment or the parties settle.

In emergency litigation situations, time is of the essence. Having an attorney who is capable of performing at a high level on a short deadline can often be the difference between winning or losing a motion for a TRO or preliminary injunction. A win or loss on such a motion can have far reaching consequences to a practice that extend beyond even the remainder of the lawsuit.

At Minias Law, we know what must be proven to win or defeat such motions and what evidence must be presented to do so. Part of our successful track record comes from having drafted and negotiated numerous non-compete agreements for employers and employees alike in New Orleans, Metairie, Kenner, Harvey, Gretna, Marrero and the surrounding areas. The sooner you contact us, the sooner we can answer your questions.