Cherokee Inc. announced today that Mossimo, Inc. has now asked the Supreme Court of the State of California to review the unanimous decision of the California Court of Appeal, which affirmed a June 17, 2003, Judgment entered in Cherokee's favor by the Los Angeles Superior Court.
The Superior Court Judgment affirmed a final arbitration award dated January 16, 2003, that awarded Cherokee all finder's fees that Mossimo had withheld under its March 28, 2000, finders agreement with Cherokee, together with interest at the statutory rate and Cherokee's full attorneys' fees, which Judgment amount exceeds $3 million. The Superior Court Judgment determined that Cherokee is also and will continue to be entitled to receive from Mossimo 15% of all revenue received by Mossimo from Target Stores pursuant to Mossimo's March 28, 2000, licensing agreement with Target, and any extensions thereof.
In its unanimous, unpublished December 30, 2003, decision, the California Court of Appeal, Second Appellate District, affirmed the Superior Court Judgment in all respects, establishing as well Cherokee's right to recover additional interest at the legal rate on all post-Judgment amounts and additional attorneys' fees relating to the appeal.
The Court of Appeal decision thus reaffirms the validity of the original finders agreement between Cherokee and Mossimo and reaffirms Cherokee's right to be paid all amounts currently due and due in the future thereunder.
“Given that three separate tribunals have now rejected Mossimo's position in this matter, we are surprised that Mossimo is continuing to pursue further possible appellate proceedings, particularly since, at the same time, Mossimo continues to obligate itself to pay substantial ongoing interest amounts and attorneys' fees to Cherokee,” said Howard Siegel, Cherokee's President. “We intend to pursue the recovery this year of all monies, including interest and legal expenses to which we are entitled under the Judgment.”
