Opinion ID: 445056
Heading Depth: 1
Heading Rank: 2

Heading: Louisiana Law Governs This Action

Text: 8 Broyles' employment contracts with Mantek provide that the contracts are to be governed by Texas law. Sitting in diversity, this Court is required to apply the Louisiana approach to conflicts of law. Klaxon Co. v. Stentor Electric Manufacturing Co., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). Louisiana allows parties to stipulate in their contracts which state's laws are to govern them. White v. Crook, 426 So.2d 334 (La.App. 2d Cir.1983). 4 See Delhomme Industries, Inc. v. Houston Beechcraft, Inc., 669 F.2d 1049 (5th Cir.1982). Such contractual stipulations are not honored, however, where there are legal or 'strong public policy considerations justifying the refusal to honor the contract as written.'  ADR v. Graves, 374 So.2d 699, 700-01 (La.App. 1st Cir.1979). See Davis v. Humble Oil and Refining Co., 283 So.2d 783, 794 (La.App. 1st Cir.1973). 9 Strong public policy concerns exist in this case which require application of Louisiana law. The instant contracts involve a covenant not to compete, as well as covenants not to disclose confidential information or solicit Mantek's customers. In ADR, a Louisiana court found invalid a similar contract involving a covenant not to compete which stipulated that North Carolina law was to govern its terms. The court applied Louisiana law to invalidate the contract because a strong public policy exists in Louisiana which disfavors covenants not to compete. 5 Under the ruling in ADR, the covenant not to compete in the instant case is also invalid. 6 Furthermore, this Court has also found that Louisiana law disallows covenants not to solicit former customers. Commonwealth Life Insurance Co. v. Neal, 669 F.2d 300 (5th Cir.1982). 10 Because of the strong Louisiana policy disfavoring contracts of the type involved in the instant case, this Court finds Louisiana law controlling on the contract issues presented in this appeal. 7 Louisiana law also applies to the noncontract issues presented. See T.G.I. Fridays, Inc. v. International Restaurant Group, Inc., 569 F.2d 895 (5th Cir.1978). 11