Facts

Plaintiff Fortune Fashion Industries (FFI) and defendants Vanilla Gorilla and West Coast Choppers, entities owned by Jesse James, entered into contracts for the production of apparel.

Initially, FFI sued James, West Coast Choppers and Vanilla Gorilla for breach of fiduciary duty based on an alleged joint venture, fraud and related claims. Subsequently, FFI sued West Coast Choppers for breach of contract and common counts, pursuant to a purchase order for custom printed t-shirts. FFI also sued Vanilla Gorilla for royalties advanced for the production of apparel. The cases were consolidated.

Defendants filed cross complaints against Fred Kayne and Lee Rosenblatt, officers of FFI, for breach of contract and fraud.

PLAINTIFF'S CONTENTIONS:
Fortune contended that the parties formed a joint venture agreement regarding an idea that James had for a work wear line known as America's Brand, which the parties pitched to Walmart in the spring of 2007. Fortune contended that James fraudulently excluded Fortune from the alleged joint venture, and in 2008, entered into an agreement for a work wear line entitled Jesse James Industrial Work Wear, without Fortune, which allegedly violated a fiduciary duty to Fortune.

DEFENDANTS' CONTENTIONS:
James denied the claims on the grounds that no joint venture was formed, nor breached, and that there was no fiduciary relationship, nor fraud.

James denied that a joint venture was formed on the grounds that there was no agreement as to material terms, and that even assuming the existence of a joint venture, it could have only involved the America's Brand pitch, which was rejected, and was a different line than Jesse James Industrial Work Wear, a prior version of which was already being sold. Defendants denied the fraud claim on the grounds that there was no evidence of fraud.

Damages

Fortune sought $6 million in lost profits. Fortune also sought $51,000 on the purchase order and $131,000 in royalties.

Result

The court found for Fortune on its breach of contract claims, awarding $168,000. The court found in favor of James and Vanilla Gorilla on the joint venture, breach of fiduciary duty, and fraud claims. The count found for cross-defendants on the cross-complaints.

Other Information

The court has not yet entered final judgment.