NEW YORK — The U.S. District Court for the Northern District of Georgia on Friday awarded $11 million in damages to Tommy Hilfiger Corp. from Goody’s Family Clothing Inc.

This story first appeared in the May 12, 2003 issue of WWD.  Subscribe Today.

The award consists of $2.1 million in damages for the sale of counterfeit T-shirts and nearly $9 million for trademark infringement involving the labeling of three lines of private label jeans formerly used by the 330-unit Knoxville, Tenn.-based retailer.

In a statement, Goody’s chairman and chief executive officer Robert M. Goodfriend said: “In the matter of the T-shirts, Goody’s did not knowingly sell counterfeit merchandise, and we strongly disagree with the court’s finding of willful blindness. We also vigorously dispute the court’s finding that we intended to copy and derive benefit from the Tommy Hilfiger trademark.”

Goody’s said it has insurance coverage in excess of the amount of the damage award. Its insurers, however, have reserved their rights regarding their obligation to indemnify Goody’s, and so there can be no assurances that the insurance will be available, the company said.