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

Filing 98

JUDGMENT by Judge John F. Walter. IT IS HEREBY ORDERED AND ADJUDGED THAT: (1) Plaintiffs Motion for Partial Summary Judgment 85 is GRANTED; (2) Plaintiffs are entitled to an award of damages in the amount of $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 5/1/2017, and accruing at a daily rate of $21.82 thereafter; (3) Plaintiffs are also entitled to their reasonable attorneys fees and costs incurred in enforcing the Non-Compete Provision and seeking injunctive relief, in an amount to be submitted by Plaintiffs in a Motion for Attorney' Fees and Costs; further GRANTS Plaintiffs permanent injunctive relief: Defendants and their officers, agents, servants, employees, andattorneys are hereby permanently restrained and enjoined. The Clerk of Court shall close this case. (MD JS-6, Case Terminated). (jp)

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Teresa H. Michaud, State Bar No. 296329
[e-mail]
Laura J. O’Rourke, Admitted Pro Hac Vice
[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.

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA - WESTERN DIVISION

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FLIP FLOP SHOPS FRANCHISE COMPANY, Case No. 2:16-cv-07259-JFW (Ex)
LLC, FFS HOLDINGS, LLC, and CHEROKEE
Date Action Filed:
INC.,
September 27, 2016
Plaintiffs,

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

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JUDGMENT

The Honorable John F. Walter
Courtroom 7A

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United States Courthouse
350 W. 1st Street
Los Angeles, CA 90012

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

Case No 2:16-cv-07259-JFW (Ex)
JUDGMENT
858001-v1\DALDMS

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

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

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

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

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Polu Lani LLC (collectively, “Defendants”);

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

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

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

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

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

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Amended Complaint [ECF 86];

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

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

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

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records, and documents on file in this action;

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

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

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

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

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judgment should be entered.

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IT IS HEREBY ORDERED AND ADJUDGED THAT:

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1.

Plaintiffs’ Motion for Partial Summary Judgment is GRANTED;

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2.

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

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

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

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

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rate of $21.82 thereafter;
3.

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

Plaintiffs are also entitled to their reasonable attorney’s fees and costs
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Case No 2:16-cv-07259-JFW (Ex)
JUDGMENT

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incurred in enforcing the Non-Compete Provision and seeking injunctive

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

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Attorneys’ Fees and Costs;

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The Court further GRANTS Plaintiffs permanent injunctive relief, as

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follows:

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

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attorneys are hereby permanently restrained and enjoined from

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operating the Terminated Stores, and from using Plaintiffs’
proprietary System, Confidential Information and Marks;

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b. Additionally, Defendants are expressly ordered to comply with

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the Non-Competition Provision required of Defendants under the

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Franchise Agreements including with respect to the geographic

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restrictions set forth therein;

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

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

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Agreements and as ordered by the Court in its Preliminary

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Injunction on December 12, 2016 [ECF 65];

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Final judgment is entered in favor of Plaintiffs;

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action and their costs shall be taxed against Defendants;

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

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

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

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

The Clerk of Court shall close this case.
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Baker & McKenzie LLP
Two Embarcadero Center
11th Floor
San Francisco, CA 94111
+ 1 415 576 3000

May 2, 2017
HONORABLE JOHN F. WALTER
UNITED STATES DISTRICT JUDGE
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Case No 2:16-cv-07259-JFW(Ex)
JUDGMENT