Opinion
NO. 2018 CW 0553
08-14-2018
In Re: Chris Price, applying for supervisory writs, 19th Judicial District Court, Parish of East Baton Rouge, No. 658529. BEFORE: McDONALD, CRAIN, AND HOLDRIDGE, JJ.
WRIT GRANTED. Relator entered an employment contract with respondent, which included the following:
In the event Employee terminates Employee's employment prior to the expiration of the Term, for any reason other than death or disabling illness/accident, Employee agrees to pay Employer stipulated damages equal to 25% of Employee's remaining compensation or ninety (90) days compensation under this Agreement, whichever is greater, had Employee's employment continued through the expiration of the Term.
Respondent seeks to collect $13,499 in stipulated damages, attorney fees and expenses pursuant to the employment contract. The trial court denied relator's exception of no cause of action directed at these claims. We find the provision unenforceable. It is penal in nature, violates public policy, and is not supported by either statute or jurisprudence. See, La. R.S. 23:634(A); La. R.S. 23:921; Orkin Exterminating Co. v. Foti, 302 So.2d 593, 596; See also, Keiser v. Catholic Diocese of Shreveport, Inc., 38, 797 (La. App. 2d Cir. 8/18/04), 880 So.2d 230, 236, Service Investors, LTD v. Scully, 2008-1062 (La. App. 3d Cir. 3/4/09), 9 So. 3d 910, 915. Accordingly, the judgment of the trial court is reversed, the exception of no cause of action filed by relator is sustained, and respondent's claims against relator are dismissed with prejudice.
WJC
GH
JMM
COURT OF APPEAL, FIRST CIRCUIT /s/_________
DEPUTY CLERK OF COURT
FOR THE COURT