Flip Flop Shops Franchise Company, LLC et al v. Amy Neb et al

Filing 114

AMENDED JUDGMENT by Judge John F. Walter, in favor of Cherokee Inc., FFS Holdings, LLC, Flip Flop Shops Franchise Company, LLC against Kings X, LLC, Polu Lani LLC, Swagger LLC, Amy Neb, Chad Neb. Plaintiffs are entitled to an award of damages in th e amount $44,254.53, plus 18% interest beginning on December 12, 2016, the date on which the Court issued its Preliminary Injunction [ECF 65], such interest totaling $3,077.21 as of May 1, 2017, and accruing at a daily rate of $ ;21.82 thereafter; 98 Defendants will pay the amount of $200,000.00 (Two Hundred Thousand) to Plaintiffs in full satisfaction of Plaintiffs Request for Attorneys Fees. Final judgment is entered in favor of Plaintiffs;Plaintiffs are the pr evailing parties in this action and their costs shall be taxed against Defendants. Any motions or applications for costs or attorneys fees shall be served and filed within fourteen (14) days after the entry of this Final Judgment; and, thereafter. (pj)

1
2
3
4
5
6
7
8
9
10
11

Teresa H. Michaud, State Bar No. 296329
[e-mail]
Christina Wong, State Bar No. 288171
[e-mail]
BAKER & McKENZIE LLP
Two Embarcadero Center, 11th Floor
San Francisco, CA 94111-3802
Telephone: [phone]
Facsimile:[phone]
Timothy Gorry, State Bar No. 143797
[e-mail]
THEODORA ORINGHER PC
1840 Century Park East, Suite 500
Los Angeles, CA 90067-2120
Telephone: [phone]
Facsimile: [phone]
Attorneys for Plaintiffs
Flip Flop Shops Franchise Company, LLC,
FFS Holdings, LLC, and Cherokee Inc.
UNITED STATES DISTRICT COURT

12
13

CENTRAL DISTRICT OF CALIFORNIA - WESTERN DIVISION

14
15
16

FLIP FLOP SHOPS FRANCHISE
COMPANY, LLC, FFS HOLDINGS, LLC,
and CHEROKEE INC.,
Plaintiffs,

17
18
19
20
21

v.
AMY NEB; CHAD NEB; SWAGGER,
LLC; KING’S X, LLC; and POLU LANI
LLC,

Case No. 2:16-cv-07259-JFW (Ex)
Date Action Filed:
September 27, 2016

AMENDED JUDGMENT
Before the
Honorable John F. Walter

Defendants.

22
23
24
25
26
27
28
Baker & McKenzie LLP
Two Embarcadero Center
11th Floor
San Francisco, CA 94111
+ 1 415 576 3000

Case No 2:16-cv-07259-JFW (Ex)
] AMENDED JUDGMENT

1

Pursuant to the Joint Stipulation Regarding Agreement on Amount of

2

Attorneys’ Fees of Plaintiffs’ Counsel, the Judgment in the case, entered on May 2,

3

2017 [ECF No. 98] is amended in order to reflect the Parties’ agreement on the

4

amount of attorneys’ fees to be paid by Defendants to Plaintiffs. The agreement is set

5

out in Section 4 below.

6

WHEREAS, Plaintiffs Flip Flop Shops Franchise Company, LLC, FFS

7

Holdings, LLC, and Cherokee Inc. (collectively, “Plaintiffs”) filed their Second

8

Amended Complaint [ECF 37] on October 20, 2016, asserting eleven (11) claims for

9

relief against Defendants Amy Neb, Chad Neb, Swagger, LLC, Kings X, LLC, and

10

Polu Lani LLC (collectively, “Defendants”);

11

WHEREAS, on March 27, 2017, Plaintiffs filed their Motion for Partial

12

Summary Judgment [ECF 85] on Plaintiffs’ Seventh Cause of Action for Breach of

13

Contract and Eighth Cause of Action for Breach of Noncompete Covenant;

14

WHEREAS, on March 31, 2017, Plaintiffs and Defendants filed a Stipulation

15

of Dismissal Without Prejudice of Claims 1-6 and 9-11 of Plaintiffs’ Second

16

Amended Complaint [ECF 86];

17

WHEREAS, the Court has considered the parties’ memoranda of points and

18

authorities, statements of uncontroverted facts and conclusions of law, the

19

supporting declarations and evidence submitted therewith, as well as all of the other

20

pleadings, records, and documents on file in this action;

21

WHEREAS, on April 25, 2017, the Court issued an Order Granting Plaintiffs’

22

Motion for Partial Summary Judgment [ECF 95] and a Statement of Decision

23

Granting Plaintiffs’ Motion for Partial Summary Judgment [ECF 96]; and,

24

WHEREAS, in view of the Court’s Order and Statement of Decision, final

25

judgment should be entered.

26

IT IS HEREBY ORDERED AND ADJUDGED THAT:

27

1.

Plaintiffs’ Motion for Partial Summary Judgment is GRANTED;

28

2.

Plaintiffs are entitled to an award of damages in the amount of

Baker & McKenzie LLP
Two Embarcadero Center
11th Floor
San Francisco, CA 94111
+ 1 415 576 3000

1
Case No 2:16-cv-07259-JFW (Ex)
[PROPOSED] AMENDED JUDGMENT

1

$44,254.53, plus 18% interest beginning on December 12, 2016, the

2

date on which the Court issued its Preliminary Injunction [ECF 65],

3

such interest totaling $3,077.21 as of May 1, 2017, and accruing at a

4

daily rate of $21.82 thereafter;

5 3.

Plaintiffs are also entitled to their reasonable attorney’s fees and costs

6

incurred in enforcing the Non-Compete Provision and seeking

7

injunctive relief, in an amount to be submitted by Plaintiffs in a Motion

8

for Attorneys’ Fees and Costs;

9 4.

Plaintiffs and Defendants have reached an agreement on the amount of

10

attorneys’ fees, as follows: Defendants will pay the amount of

11

$200,000.00 (Two Hundred Thousand) to Plaintiffs in full satisfaction

12

of Plaintiffs’ Request for Attorneys’ Fees.

13

jurisdiction over the attorneys’ fees’ matter, in case of any future

14

disputes.

15 5.

The Court further GRANTS Plaintiffs permanent injunctive relief, as

16

follows:

The Court will retain

17

a. Defendants and their officers, agents, servants, employees, and

18

attorneys are hereby permanently restrained and enjoined from

19

operating the Terminated Stores, and from using Plaintiffs’

20

proprietary System, Confidential Information and Marks;

21

b. Additionally, Defendants are expressly ordered to comply with

22

the Non-Competition Provision required of Defendants under the

23

Franchise Agreements including with respect to the geographic

24

restrictions set forth therein;

25
26

of the two-year non-competition period provided by the

27

Franchise Agreements and as ordered by the Court in its

28
Baker & McKenzie LLP
Two Embarcadero Center
11th Floor
San Francisco, CA 94111
+ 1 415 576 3000

c. This order shall continue in full force and effect for the duration

Preliminary Injunction on December 12, 2016 [ECF 65];
2
Case No 2:16-cv-07259-JFW(Ex)
[] AMENDED JUDGMENT

1 6.

Final judgment is entered in favor of Plaintiffs;

2 7.

Pursuant to Local Rule 54-1, Plaintiffs are the prevailing parties in this

3

action and their costs shall be taxed against Defendants;

4 8.

Pursuant to Local Rules 54-2 and 54-10, any motions or applications

5

for costs or attorneys’ fees shall be served and filed within fourteen (14)

6

days after the entry of this Final Judgment; and, thereafter,

7 9.

The Clerk of Court shall close this case.

8 IT IS SO ORDERED.
9
10
11

Dated: August 1, 2017
HONORABLE JOHN F. WALTER
UNITED STATES DISTRICT JUDGE

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Baker & McKenzie LLP
Two Embarcadero Center
11th Floor
San Francisco, CA 94111
+ 1 415 576 3000

3
Case No 2:16-cv-07259-JFW(Ex)
[] AMENDED JUDGMENT