NEW YORK — Brand Science, an affiliate of Accessory Network that does business as LeSportsac, has withdrawn its request for a preliminary injunction in a lawsuit filed against Tim Schifter and Schifter & Partners over a nonsolicitation agreement.
During a hearing late Wednesday before state Supreme Court Justice Herman Cahn, Schifter, the former owner of LeSportsac, agreed to continue to abide by the terms of a nonsolicitation agreement between himself and the brand’s new owners, attorneys in the case said.
The court also ordered Brand Science to continue to pay Schifter the remaining money owed to him as part of the original agreement, according to Peter Bicks, partner, Orrick, Herrington & Sutcliffe, who is representing Schifter. Brand Science had requested a declaratory judgment absolving it from paying Schifter the remaining $167,000 of a $1.4 million payment that was part of the letter of agreement the parties signed in February. The judge requested that Accessory Network submit a list of its customers so he could determine who qualified under the terms of the agreement, Bicks said.
“This is a great result for Mr. Schifter and his new company. They’ve gotten the green light to get their business going, and to continue to get it going,” Bicks said.
LeSportsac was pleased with the judge’s affirmation of the nonsolicitation agreement as well, according to the company’s attorney.
“All in all, it was a good day for LeSportsac,” said Barry Slotnick, of Buchanan Ingersoll PC. The company got the relief it was looking for, he said.
Brand Science filed a breach of contract lawsuit against Schifter in state Supreme Court on May 4 for allegedly violating the terms of an agreement signed when he left LeSportsac. The complaint alleged that Schifter had directly and indirectly solicited customers of LeSportsac through his new accessories venture, Schifter & Partners, in which Gwen Stefani is a shareholder.