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Old Navy Wins Lawsuit!

| Filed under: Legal MattersOld Navy

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Way back in February 2009, designer Todd Oldham, who then served as Old Navy's design creative director, filed suit against the Gap-owned retailer, claiming that the company had failed to negotiate in good faith on the line as previously promised.

More specifically, when Old Navy hired Oldham, the two parties had planned to create a Todd Oldham signature line in addition to his day-to-day post as creative director. The line never came to fruition, and Oldham filed suit.

On Tuesday, however, U.S. District court Judge Denny Chin ruled that Oldham's suit didn't prove that Old Navy failed to live up to the agreement. In fact - quite the contrary: Old Navy had tried to work out a deal, but Oldham wanted more than they offered.

Judge Chin says:

"Moreover, [Oldham's creative design company] L-7 was making extraordinarily high demands. At one point during the discussions, L-7 demanded (through outside counsel) $75 million in compensation for lost royalties and reputational damages. It later demanded a minimum guarantee of $37.5 million in royalties for a three-year-term, which it then later reduced to $20 million for a two-year term…It is not surprising that Old Navy resisted these demnads."

Case dismissed!

Oldham, however, has sworn to fight the ruling.

Sorry, Todd, but we think Old Navy's in the right on this one!

[Image via AP Images.]

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