Confidential
Settlement – $0Judge
Court
L.A. Superior Burbank
Attorneys
Plaintiff
Defendant
Facts
In 1996, plaintiff, a women's clothing manufacturer, and defendant, a women's clothing designer, entered into a Merchandise License Agreement for the design, production and sale of women's clothes. Pursuant to this agreement, under which the parties operated for approximately 10 months, plaintiff was granted a license for the exclusive use of defendant's name and paid defendant a license fee for women's garments designed by defendant and sold and manufactured by plaintiff. A dispute arose as to defendant's hours, need for a particular pattern maker, expenses for trips, appropriate remedy for production problems, time for and amount of royalty payments due, etc. As a result, defendant left plaintiff's company, revoked its license, and went into business with one of plaintiff's former employees. At issue was the amount of compensation due defendant for royalties and expenses under the agreement and which party had the right to the use of defendant's name on women's garments. The plaintiff brought this action against the defendant based on a breach of contract theory of recovery.
Settlement Discussions
The settlement was reached approximately two months after the case was filed. MEDIATION: A mediation was held on Oct. 13, 1997, before Deborah Rothman of AAA resulting in the reported settlement.
Damages
The plaintiff sought an injunction barring defendant from designing for any other entity, from soliciting orders from the major account, and compelling her to design for plaintiff. Defendant sought $30,000 in royalties and expenses, plus the exclusive right to the use of her name.
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