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Contracts
Breach of Contract
Purchase of Goods

American Apparel Inc. v. Stills Productions Inc.

Published: May 31, 2008 | Result Date: May 23, 2007 | Filing Date: Jan. 1, 1900 |

Case number: BC349266 Bench Decision –  $364,673

Court

L.A. Superior Central


Attorneys

Plaintiff

Joyce Crucillo
(Pressed Juicery)

Jeanie A. Dourbetas


Defendant

Daniel J. Kessler
(Burkhalter, Kessler, Clement & George LLP)

Gary M. Slavett
(Holtz, Slavett & Drabkin, APLC)

Dale Michael Oberbeck
(Burkhalter Kessler Clement & George LLP)


Facts

Defendant Stills Productions Inc. contracted with plaintiff American Apparel Inc. to buy goods on account in exchange for timely payment. The plaintiff sued all defendants for breach of contract. Defendant Krouse cross-claimed against defendant Levin, Stills Productions' president, seeking indemnity.

Contentions

PLAINTIFF'S CONTENTIONS:
The plaintiff contended defendants failed to pay past due amounts, breaching the parties' contract to purchase plaintiff's goods.

DEFENDANTS' CONTENTIONS:
Defendant Krouse contended that there was neither a direct contractual relationship nor a personal guarantee with plaintiff. Defendant Krouse also contended defendant Levin agreed to indemnity Krouse in exchange for Krouse's agreement to forego any claim in connection with Stills Productions' licensing relationship with Camp Beverly Hills Ltd.

Damages

Plaintiff asked for over $135,000 in fees and costs.

Result

Judge Ann Jones awarded plaintiff $364,673 in damages. The court awarded $51,935 in attorney fees and $828 in costs against defendant Krouse. Plaintiff settled with defendants Levin and Stills Production for $350,000 on the eve of trial. The court entered default judgments against defendants Camp Apparel Licensing and Camp Apparel Inc. in July 2006. Defendants Camp Beverly Hills Ltd. and Camp Beverly Hills Inc. were dismissed without prejudice in May 2006.

Other Information

FILING DATE: March 20, 2006.


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