Li & Fung LTD. has scored a six-figure judgment against Contemporary Streetwear LLC, a New York-based apparel supplier, which failed to pay the sourcing giant for orders it made for the company from 2009 to 2011.
On Thursday, New York Southern District Magistrate Judge Debra Freeman awarded the Hong Kong-based firm $1.7 million in compensatory damages. This does not include a pre-judgment interest rate of 9 percent a year that will be calculated by the court.
In the lawsuit, which was filed in New York federal court in 2011, Li & Fung claimed that Contemporary Streetwear “refused to pay” three years of invoices and that it “indicated no intent to pay” the invoices that were “outstanding but have not yet become due.”
Initially, Li & Fung was looking for $5.1 million in damages, but it also cited in its complaint a host of unpaid orders that it delivered from October 2010 to February 2011, which amounted to $1.7 million.
In the complaint, Li & Fung referenced a deal meant to “induce” it to remain Contemporary Streetwear’s primary buying agent. According to court papers, the contract stipulated that Contemporary Streetwear would “assume the obligations” of its licensee Icer Brands, also known as Cavi Juniors, if Li & Fung dropped its claims against Icer. After releasing the legal claims, Contemporary Streetwear said it would pay $48,000 for sample charges, take possession of Icer’s inventory worth “at least $94,307.50” and sell it in order to pay the Hong Kong firm, but according to the lawsuit, the defendant never sent Li & Fung any of the proceeds related to the sale of the inventory.
These figures were folded into Thursday’s $1.7 million award, according to court papers.
Freeman’s monetary award follows last year’s order for summary judgment by New York District Court Judge Colleen McMahon, who presided over the case. In her judgment, McMahon cited Contemporary Streetwear’s refusal to cooperate during the discovery phase of the litigation. She then sent the case to Freeman to mull over damages.
In honor of Rihanna’s 30th birthday, we took a look back at an interview with the Barbados-native when she was just 18 years old. Here, she talked about her second album, “A Girl Like Me” in 2006. “I want to be me. I want people to fall in love with who Rihanna is, and that’s why I want the album to be about me so people can really find out who this girl Rihanna is, because they only know the ‘Pon de Replay’ girl.” Fast forward 12 years, and she’s released six more albums and has become a powerhouse in both the fashion and music industries. Happy birthday, @badgalriri 🎈(📷: Pavel Antonov) #wwdarchive
For @simonerocha_‘s fall show, hairstylist @jamespecis created a look inspired by the painter John Constable. Models’ hair was pulled back, tied into knots and topped off with a bow. (📷: @kukukuba) #wwdbeauty #lfw
Queen Elizabeth made a surprise appearance at @richardquinn1's London Fashion Week show to present the designer with the inaugural Queen Elizabeth II Award for British Design. The new award will be handed out annually to an emerging British fashion designer who shows exceptional talent, while demonstrating value to the community and sustainable policies. #wwdfashion #lfw (📷: @giovanni_giannoni_photo)