Monday, December 08, 2008
Contact: John A. Schwimmer
Partner, (503) 243-1661 x 262
Sussman Shank Wins $11+ Million Award in Trademark Infringement Case
Los Angeles -- A Los Angeles Superior Court jury has awarded Sussman Shank client Citizens of Humanity, LLC $11.3 million in damages for breach of contract, trademark infringement, and fraud. The jury found Citizens of Humanity’s Japanese-based distributor Caitac International, Inc., Caitac Corp., and its Los Angeles branch Caitac Garment Processing, Inc. violated their exclusive contract by failing to buy the minimum quota of apparel. Yet even after Caitac no longer had the right to sell the Citizens of Humanity brand, it continued to offer the apparel to outlet stores at deep discounts. A Senior Caitac Executive admitted the practice could ruin the value of the Citizens of Humanity brand in Japan.
Sussman Shank attorney John A. Schwimmer who represented the premium jean maker said, “It was bad enough that Caitac built up excessive inventory that it concealed from Citizens. But the defendants compounded the problems substantially by ignoring the requirements of the contract that they stop selling Citizens apparel immediately. We appreciate that the jury carefully analyzed the evidence and sent a message that this type of business misconduct is not acceptable behavior.”
Citizens of Humanity, LLC will receive more than $9.8 million in compensatory damages and more than $1.5 million in punitive damages in the jury award.
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