Facts

Olaes Enterprises was a California corporation based in Poway. Olaes entered into a Manufacturer's Agreement with IBC Apparel Ltd. and Shahab Ahmed, where IBC and Ahmed agreed to manufacture clothing in accordance with written purchase orders placed by Olaes. The clothing was required to conform to the price in Olaes's purchase orders and meet Olaes's quality standards.

Olaes later filed suit against IBC and Ahmed, based on that agreement.

PLAINTIFF'S CONTENTIONS:
Olaes argued that the defendants breached their agreement by failing to timely deliver goods based on a purchase order, and also for delivering non-conforming goods. Due to the defendants' failure to deliver, Olaes was not able to deliver required clothing to Wal-Mart, who in turn cancelled their order with Olaes.

DEFENDANT'S CONTENTIONS:
Defendants denied that they had entered into the Manufacturer's Agreement with Olaes, and claimed that it did not govern their relationship. They denied the plaintiff's allegations and asserted various affirmative defenses, including lack of jurisdiction and improper venue.

According to the defense, IBC is a Pakistani company with assets only in Pakistan and Ahmed is dying of cancer, and has no assets.

Damages

Olaes sought $463,381.90 in damages.

Result

The parties agreed to a stipulated judgment, where Olaes was awarded $395,000.

Other Information

A motion for attorney fees to be added to the judgment is pending. Defendants attorneys had requested leave to be removed as counsel prior to judgment and the request was pending at the time the stipulated judgment was entered.