Facts

Plaintiff Barmas, Inc. which was owned by Michael Baruch and Raul DeArmas, managed a salon, spa, and wellness center. Barmas, Inc. licensed intellectual property and rented commercial space from defendants Fred Segal, Michael Segal, and their affiliated business entities, in the Fred Segal Center in Santa Monica, California. Barmas, Inc. sued the Segals for intentional and negligent misrepresentation, breach of oral contract, breach of written contract, and promissory estoppel. The Segals cross-claimed for, among other things, breach of the lease agreement, conversion, trademark infringement.

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed that defendants misrepresented the fact that they would not license plaintiff to utilize the Fred Segal name for a salon at a different location. Further, plaintiff contended that defendants breached oral and written agreements by failing to keep their promises. Plaintiff also denied defendants' claims.

DEFENDANTS' CONTENTIONS:
Defendants rejected plaintiff's claims of misconduct and averred that plaintiff illegally took defendants' property from the Fred Segal Center and sold or disposed of it. Further, defendants argued that plaintiff committed fraud, unlawfully interfered with its contracts, committed trademark infringement, engaged in unfair competition and false advertising, and illegally utilized the Fred Segal name to look for business.

Result

The jury awarded defendants $89,299 on their cross-claim. Additionally, the Court granted a permanent injunction against Barmas Inc., with respect to their use of the Fred Segal name and trademark, and awarded the Segals their costs and attorneys fees.

Other Information

FILING DATE: Aug. 14, 2008.