Construction company sues former employee, alleged mistress over non-compete clause

GRETNA – A construction company is suing a former employee and his alleged mistress, accusing the pair of steering business away from one of their sister companies to a business with a similar name.

Creek Services LLC filed suit against Sharla Jarvis, Shaun Schwartz and SCS Services Inc. of North Dakota in the 24th Judicial District Court on Dec. 3.

Creek Services alleges Schwartz, a former employee, and Jarvis converted their confidential business information and attempted to deceive their customers by telling them they were doing business with sister company SCS Services-Louisiana, an equipment rental company, when they were actually doing business with SCS Services-North Dakota, according to the lawsuit.

The plaintiff states its primary work is for the U.S. Army Corps of Engineers and claim Schwartz was introduced to them as a subcontractor before he was hired by Creek Services.

According to the lawsuit, Creek Services alleges that Schwartz, who was a married man at the time, began having an affair with Jarvis, an employee of another construction company.

The plaintiff claims while Schwartz and his ex-wife co-owned SCS Services, the company that was contracted with Creek Services, Schwartz and his alleged mistress were traveling to North Dakota together and stealing construction customers from Creek Services, according to the lawsuit.

Creek Services alleges that after Schwartz’s wife found out about his relationship with Jarvis they got a divorce and she took possession of SCS-Louisiana, however, the suit claims, Schwartz continued to operate SCS-North Dakota in violation of his employment agreement with Creek Services.

The defendant is accused of breach of contract, breach of good faith, unfair trade practices, violating state law, stealing business opportunities, making misrepresentations to Creek’s customers, disclosing confidential and proprietary business information and seeking to obtain financing using their financial wherewithal.

Creek Services is represented by JoAnn J. Courcelle of New Orleans-based Adams and Reese LLP.

The case has been assigned to Division H Judge Glenn B. Ansardi.

Case no. 733-527.