Vans was awarded approximately $8.0 million in a lawsuit Vans had filed against a former officer and consultant and their affiliates in March 2002. The suit alleged that the defendants engaged in a conspiracy to get unauthorized payments or commissions from some of Vans factories in China.
The suit, filed in the Los Angeles Superior Court, named Scott Brabson, Gordana Brabson, Jay Rosendahl, Heidi Rosendahl, Catch Air Technology, et al.
Vans also filed arbitration against Scott Brabson and Jay Rosendahl making the same allegations. The company said it believed the defendants wrongfully obtained more than $3 million.
On January 28, 2003, an arbitrator issued a final award against Scott Brabson in this matter. He found that Mr. Brabson had breached his employment agreement with Vans; breached his fiduciary duties to Vans; and committed numerous other torts against Vans. He awarded damages of approximately $4.8 million to Vans and also awarded interest and attorney’s fees to Vans in the amount of approximately $3.2 million. Therefore, the total amount of the award
to Vans is approximately $8.0 million.
The award is subject to confirmation by the Los Angeles Superior Court. A hearing on the confirmation is scheduled for February 20, 2003.
In a separate suit, Gordana Brabson filed suit against Vans, two of Vans executive officers, and some other individuals Dec. 6 in connection with the mentioned litigation.
Vans said Brabson alleges causes of action for invasion of privacy, trespass and “intentional infliction of emotional distress” from the investigation conducted by the company. The company said she’s seeking an unspecified amount of compensatory, special and punitive damages.
The arbitrator also issued an interim award in this matter against Jay Rosendahl for the same amount of damages. The interim award is joint and several with the award against Mr. Brabson. In the interim award, the arbitrator found that Mr. Rosendahl had breached his consulting
agreement with Vans and conspired with Mr. Brabson to commit numerous torts against Vans.
Mr. Rosendahl filed for bankruptcy protection under Chapter 7 of the Federal Bankruptcy Act on January 27, 2003, before the interim award against him was made final by the arbitrator. As a result, entry of a final award against Mr. Rosendahl has been stayed pending various hearings in the bankruptcy case. Vans believes that the award against Mr. Rosendahl is not dischargeable in the bankruptcy case, and intends to make motions to lift the stay in the near future. If Vans is
successful in getting the stay lifted, the arbitrator will issue a final award against Mr. Rosendahl that will be subject to confirmation by the Los Angeles Superior Court.
