Affliction Sues Its Distributor In Mexico

Given that Affliction has resolved two cases in the past two weeks (see my posts "Affliction Knocks Another Lawsuit Off its List-- Chrome Hearts and Affliction have Reached a Settlement in Principle" and "M-1 Global and Affliction's Lawsuit with Freeplay Music Dismissed"), I was beginning to think that Affliction had enough with litigation period. 

Well, it appears that I was wrong.

On August 16 2010, Affliction filed a complaint against Oficina De Representaciones Mundiales S.A De C.V. ("ORM") and Eduardo Kurian in the United States District Court for the Central District of California.

According to the complaint, "[o]n or about October of 2009, Affliction and Defendants, entered into a written Distribution Agreement whereby Affliction appointed Defendants as the exclusive distributor in Mexico for the Affliction and Sinful clothing brands[]."  The distribution agreement was allegedly signed by "Kurian [] on behalf of ORM dba as Eduardo Kurian."

As an aside, I checked the Affliction website and Kurian is still listed as the Affliction distributor in Mexico.

Affliction alleges that under the distribution agreement, defendants "were obligated to purchase a minimum of $1,000,000 of Affliction Products during the period October 1, 2009 until March 31, 2011" and that "[d]espite Defendants' placement of orders and receipt of Affliction Products, Defendants have failed to remit payment in the amount of $242,518 as of the filing of this Complaint."

Further, Affliction alleges that it:

also advanced the sum of $125,000 to hold a launch party in Mexico City in furtherance of Defendants' duties and obligations under the Distribution Agreement. Defendants have not repaid the advanced monies nor have they complied with the terms of the Distribution Agreement.

The complaint contains five (5) counts:  (1) breach of contract (for the $367,000); (2) breach of the implied covenant of good faith and fair dealing; (3) promissory estoppel (for the $125,000); (4) declaratory relief; and (5) injunction. 

One thing to note, although Affliction seeks the entire $367,000 in its breach of contract claim, the fact that it is also seeking the $125,000 "advance" under a promissory estoppel theory suggests that the "advance" was not contemplated in the written distribution agreement (Affliction claims the distribution agreement is attached to the complaint, but it was not available on-line).

Fight Lawyer