American jeans & casual wear manufacturer Levi Strauss &Co wins appeal in legal dispute with Mexico City firm.
On May 31, a civil appeals court in Mexico City reversed a lower court ruling that would have required Levi Strauss &Co. (LS&CO.) to pay approximately $45 million in damages to a former contractor, Compania Exportadora de Maquila Comexma (Comexma). Under the appeals court ruling, the damages award was reversed entirely and LS&CO. was awarded court costs and attorneys' fees.
The court reverses $45 Million damage award.
Comexma sued LS&CO. following an unauthorized anti-counterfeiting raid on its Mexico City facilities in June, 2001, initiated by LS&CO.'s outside Mexican brand counsel. No counterfeiting was discovered and the raid was terminated when LS&CO. representatives confirmed that Comexma was an authorized manufacturer at the time.
In their original lawsuit, Comexma alleged that the raid resulted in the loss of prestige in the commercial market, the loss of business and the need to shut down the company. The trial court awarded Comexma approximately $24.5 million in direct damages, and approximately $20.5 million in damages for harm to its reputation. LS&CO. appealed the trial court decision to Mexico City's civil appellate court.
In overturning the lower court's ruling, the appeals court found that there was no direct relationship between the raid and Comexma's decision to close the facility, the damages claimed by Comexma were not caused by the raid, and there was no intent by LS&CO. to harm the former contractor. y Comexma were not caused by the raid, and there was no intent by LS&CO. to harm the former contractor.
Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss & Co. (LS&CO.) is one of the world's largest brand-name apparel marketers with sales in more than 110 countries. There is no other company with a comparable global presence in the jeans and casual pants markets. Our market-leading apparel products are sold under the Levi's, Dockers and Levi Strauss Signature brands.
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