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Elena R. Baca

| Jul. 20, 2016

Jul. 20, 2016

Elena R. Baca

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Paul Hastings LLP

Baca is lead employment lawyer for the besieged clothing manufacturer, distributor and retailer American Apparel Inc. in the wake of its messy 2014 ouster of founder and CEO Dov Charney amid multiple mismanagement, sexual harassment and labor and immigration claims. Baca's client now is led by a female board chair, female CEO and female general counsel as it emerges from bankruptcy and executes a turnaround intended to save tens of thousands of jobs.

Its former chief did not go quietly. "Ah, the colorful Dov Charney," Baca said, "and that's an understatement. He's relentless. He's used every legal mechanism, direct and indirect, to return to a company he did not serve particularly well. He's tried litigation, arbitration and the use of friends and family to initiate meritless claims."

His legal system warfare is designed to distract and interfere with the company's rejuvenation, she believes. "The optics of it are that he's filed so many claims, but if you're not just playing a game, you have to proceed."

For key hearings before the National Labor Relations Board, for example, Charney ignored a subpoena to appear; Baca said she and Paul Hastings colleague Cameron W. Fox have now obtained a federal magistrate judge's order to compel his attendance.

Meanwhile, Baca won dismissal of Charney's defamation suit against American Apparel, its board chair, Colleen B. Brown and others following a hearing in Los Angeles County Superior Court at which Judge Terry A. Green ruled from the bench, according to a transcript, "You know, I think there' a greater likelihood that I'll be the first American astronaut stranded on Mars before [Charney] wins this lawsuit."

Green awarded Paul Hastings $112,000 in attorneys fees.

"Now we'll see what the bankruptcy court will do," Baca said, referring to a subset of Charney's lawsuits that has been on ice while bankruptcy proceedings sorted out the company's restructuring. At a hearing in March, Charney argued that the court's automatic stay on litigation should be lifted and his claims should not be discharged. If that happens, Baca said, referring to Keith A. Fink of Keith A. Fink & Associates, Charney's lead lawyer, "Mr. Fink will have a full-time job again."

Baca has additional clients, including California Cartage Co. LLC, Articulus Entrtainment Inc., Masimo Corp., Tomich Brothers LLC. But American Apparel stands out for the avalanche of litigation she's managing. "The nice part of the American Apparel story is that the new team is trying to save the company, while Mr. Charney is trying to save his ego," Baca said.

— John Roemer

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