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Unzipped Apparel, Inc. et al. v. Sweet Sportwear LLC, et al.
Case No.: BC 319612, 2007 WL 1557211, Superior Court of California, 04/12/2007
Holding
The jury issued a verdict in favor of plaintiff on each cause of action, and denied defendants’ counterclaims. Plaintiff’s causes of action consisted of breach of contract, breach of a management services agreement, breach of a supply agreement, breach of fiduciary duty, infringement on a federally registered trademark and conversion. Specifically, the jury awarded the sums of $45,000,000 for compensatory damages, and $5,000,000 for punitive damages, for a total award of $50,000,000. The jury denied defendants’ counterclaims for breach of contract on a promissory note worth $11,000,000, breach of management agreement, breach of an amended supply agreement, and breach of an amended distribution agreement.
Detailed Summary
In this suit for breach of contract, breach of a management services agreement, breach of a supply agreement, breach of fiduciary duty, and infringement on a federally registered trademark and conversion, plaintiff alleged that: (1) defendant Guez, who was responsible for an apparel joint venture’s daily operations, used the joint venture’s money to establish a competing company; (2) defendants Azteca and ADS, who were tasked with supplying and distributing apparel, respectively, engaged in overcharging with co-defendant Guez’ knowledge and consent; and (3) defendant Sweet Sportwear, Inc. reneged on its contractual guarantee to have a $1.7 million a year in sales.
Plaintiff claimed approximately $45,000,000 in damages. Defendants denied plaintiff’s allegations and brought the following counterclaims: (1) breach of contract on a promissory note worth $11,000,000; (2) breach of management agreement; (2) breach of an amended supply agreement; and (3) breach of an amended distribution agreement, among other claims.
The jury verdict found in favor of plaintiffs for all claims and against defendants on all counterclaims. The verdict in favor of plaintiff included an award of $45,000,000 in compensatory damages and $5,000,000 in punitive damages.
Service
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