By  on April 2, 2009

The legal wrangling between Todd Oldham and Gap Inc.’s Old Navy brand intensified this week when the designer added wrongful termination to the list of allegations in a suit he filed against the retailer earlier this year.

Oldham and his company, L-7 Designs Inc., first brought legal action against Old Navy in federal court in Manhattan on Feb. 18, two days before he parted ways with the company after a 17-month stint as creative director. Oldham filed the initial suit under seal, but said it alleged breach of contract and fraud.

This week, L-7 said the allegations stemmed from Old Navy’s failure to negotiate a licensing agreement for the Todd Oldham-branded line it announced when he signed on with the company in 2007. Oldham’s firm further accused the retailer of wrongfully terminating their agreement because he brought the initial suit.

Responding to the wrongful termination allegation, Gap Inc. spokeswoman Louise Callagy said the company was confident in its ability to defend itself.

“Todd failed to provide any meaningful input in the design process as well as failed to meet contractual obligations,” she said. “To be very clear, Todd Oldham joined Old Navy as a consultant, not a full-time employee.”

Old Navy responded to Oldham’s first suit on March 10 with its own counter claim, also filed under seal, which accused Oldham of breach of contract. Callagy said the company denied all allegations in the designer’s suit.

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