Rouses Enters., L.L.C., v. Clapp

Rouses Enters., L.L.C., v. Clapp

Opinion

Per Curiam:¹

Rouses Enterprises, L.L.C. appeals the dismissal of its suit to enforce a non-compete agreement against its former employee James B. Clapp II. Because Clapp was not employed by Rouses when he signed the agreement, it is unenforceable under Louisiana law. We therefore affirm.

Rouses is a grocery store chain operating in Louisiana, Mississippi, and Alabama. Clapp interviewed with Rouses for a position as Vice President of Center Store Merchandizing in December 2017. After an initial phone interview, Rouses sent Clapp an "Agreement not to Compete Against or Disclose Information of Rouses Enterprises, LLC." The agreement does not refer to Clapp as an applicant or prospective employee, but as "an employee of Rouses." Clapp signed [*2]  the agreement on December 28, 2017. At that time, Clapp was not an employee of Rouses.

Rouses offered Clapp the position on January 23, 2018. Clapp began his employment on February 12, 2018.

Clapp worked for Rouses until January 2020, when he was asked to resign. In March 2020, Clapp began working for Brookshire Grocery Company, a competitor of Rouses based in Tyler, Texas. On March 18, 2020, Clapp walked the Rouses' store in New Iberia, Louisiana, with other Brookshire employees. His visit did not go unnoticed: two days later, Rouses' HR director emailed Clapp and told him (1) he had been spotted in a Rouses and (2) to "[p]lease refer to the signed non-compete agreement . . . which forbids you to work in a Parish/County we conduct business in."

In July 2020, Rouses sued Clapp for damages and injunctive relief in Louisiana state court. Clapp removed the case to the Eastern District of Louisiana. After holding a bench trial in April 2021, the district court denied Rouses' claims, finding Rouses failed to prove that the non-compete agreement was valid and enforceable under Louisiana law. Rouses appealed.

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