Mossimo Inc. has apparently appealed the June 17 Arbitration Award and Judgment that was entered in Cherokee’s favor by the Los Angeles Superior Court to the Court of Appeal for the 2nd District of California.
On June 17, 2003, the Los Angeles Superior Court confirmed the full Arbitration Award including finder’s fees withheld under the finder’s agreement, interest at the legal rate on monies previously withheld, and Cherokee’s full attorney’s costs. It also reaffirmed the validity of the original finder’s agreement between Cherokee Inc. and Mossimo Inc., further ordering that Cherokee is entitled to receive from Mossimo 15% of all monies received by Mossimo from Target Stores pursuant to Mossimo’s licensing agreement with Target Stores dated March 28, 2000 and from any future extensions.
In conjunction with the appeal, Mossimo posted financial security satisfactory to the Court, a cash deposit in lieu of a bond, in an amount one and one half times the value of the Judgment. The appeal is expected to take six to twelve months. Interest, now accruing at over $5,000 per week, will continue to accrue at the statutory rate during the appeal.
