Todd Oldham's L-7 Designs Adds Wrongful Termination to Claims in Lawsuit Against Old Navy

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Todd Oldham's L-7 Designs Adds Wrongful Termination to Lawsuit Against Old Navy. L-7 also claims that Old Navy failed to honor terms of a License Agreement as agreed by both parties and fraudulently induced Todd Oldham to enter into both agreements through multiple misrepresentations.

Over the past 20 years, L-7 Designs has built a successful multi-faceted design business that encompasses fashion, furniture, interior design and accessories, book titles and TV shows, home furnishing collections for Target and a long standing dedication to charitable design work

L-7 Designs Inc. and its principal shareholder and President, the designer Todd Oldham, today announced that L-7 Designs has filed additional claims in its pending action in the United States District Court for the Southern District of New York, 09CIV.1432(DC), against Old Navy Inc., a Gap Inc. company. In addition to L-7's prior claims asserting breach of contract and fraud, L-7 is suing Old Navy for wrongful termination of the parties' Creative Services Agreement.

L-7 alleges that Old Navy breached the Creative Services Agreement with L-7 by failing to negotiate the terms of a License Agreement relating to the production of a Todd Oldham line of branded merchandise as announced by Old Navy in September 2007; Old Navy failed to honor terms of a License Agreement as agreed by both parties in February 2009 and wrongfully induced Todd Oldham to enter into both agreements through multiple misrepresentations; and, Old Navy has deliberately and knowingly jeopardized the integrity of the Todd Oldham marks and the reputation of the designer through its actions and wrongfully terminated the Creative Services Agreement on February 20, 2009 on grounds that L-7's filing of suit against Old Navy constituted a breach of the Agreement and grounds for termination.

"Over the past 20 years, L-7 Designs has built a successful multi-faceted design business that encompasses fashion, furniture, interior design and accessories, book titles and TV shows, home furnishing collections for Target and a long standing dedication to charitable design work," said Todd Oldham, President of L-7 Designs. "For the first time in 20 years in business, we have no choice but to enforce L-7's rights through the courts. We are saddened that it has come to this, however, Old Navy's attempt to achieve short-term savings appears to have led it to willfully breach our agreements, and wrongfully terminate the Creative Services Agreement."

The suit seeks measures that will make L-7 whole, including a declaratory judgment that Old Navy violated its agreement with L-7 Designs and an award of actual and compensatory damages arising from Old Navy's breach.

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Tisha Kresler

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