California Complex Commercial Litigation Team Scores Jury Trial Victory in Dispute Between Owners of Major E-Commerce Fashion Brand

A Latham trial team from the Century City and Los Angeles offices won a complete victory in a hard fought and lengthy jury trial between owners of a successful e-commerce company that helped pioneer online fashion branding. 

On Wednesday, November 13, a 12-person state court jury in Long Beach, California ruled in favor of Latham’s clients on claims for breach of fiduciary duty, fraud, conversion, and breach of contract against the Defendant in a case in Los Angeles Superior Court with Judge Patrick Madden presiding. 

The jury awarded Latham’s clients over $20 million in compensatory damages and another $16.5 million in punitive damages, and also resolved key and heavily contested ownership and control disputes in favor of the firm’s clients – particularly rejecting the Defendant’s claim to majority ownership and finding joint and equal control. 

The case arose from the Defendant’s attempt in late-2017 to seize control of the company. During two years of bitterly contested litigation, Latham successfully obtained a Temporary Restraining Order and Preliminary Injunction to stabilize the company’s finances after the Defendant locked the firm’s clients out of the business they had founded and operated jointly with the Defendant in 2008. After a six-week jury trial, the Latham team prevailed. 

The Latham team was led by Century City partner Daniel Schecter and Los Angeles associate Nima Mohebbi with Los Angeles associate John Pyun, Century City associates Elizabeth Greenman and Miri Gold, and Los Angeles associate Alexandra Gianelli. In addition, Boston partner Brian McManus and Washington, D.C. partner Miriam Fisher from Latham’s Tax Controversy practice have provided counsel to the clients and trial team on tax issues.