LeMond Cycling, Inc. v. Trek Bicycle Corporation
Filing
139
Attachment 10
DECLARATION of Emily S. Zastrow in Opposition to
117 Memorandum in Support of Motion,
114 MOTION for Summary Judgment filed by Trek Bicycle Corporation. (Attachments: #
1 Placeholder for Exhibits 45,55-57,61,66,70,74, #
2 Placeholder for Exhibits 46-47, #
3 Exhibit 46, #
4 Exhibit 47, #
5 Exhibit 48, #
6 Exhibit 49, #
7 Exhibit 51, #
8 Exhibit 51, #
9 Exhibit 52, #
10 Exhibit 53, #
11 Exhibit 54, #
12 Exhibit 58, #
13 Exhibit 59, #
14 Exhibit 60, #
15 Exhibit 62, #
16 Exhibit 63, #
17 Exhibit 64, #
18 Exhibit 65, #
19 Exhibit 67, #
20 Exhibit 68, #
21 Exhibit 69, #
22 Exhibit 71, #
23 Exhibit 72, #
24 Exhibit 73, #
25 Exhibit 75, #
26 Exhibit 76)(Rolf, Benjamin) SEALED DOCUMENTS RECEIVED IN CLERKS OFFICE on 8/5/2009 (lph). Modified attachment text on 8/6/2009 (RLR).
LeMond Cycling, Inc. v. Trek Bicycle Corporation
Doc. 139 Att. 10
Case 0:08-cv-01010-RHK-JSM Document 139-11
Filed 08/05/09 Page 1 of 10
ZASTROW EXHIBIT 54
Dockets.Justia.com
Case 0:08-cv-01010-RHK-JSM Document 139-11
Filed 08/05/09 Page 2 of 10
Page 1
UNITED STATES
DISTRICT COURT
OF MINNESOTA
DISTRICT
LEMOND
CYCLING,
Plaintiff,
vs.
TREK BICYCLE
INC.,
Case
08-CV-1010
No.
(RHK-JSM)
CORPORATION, Defendant and Third-Party
Plaintiff,
vs.
GREG
LEMOND,
Third-Party Defendant.
DEPOSITION
OF
KEVIN ISHAUG
May 11,
2009
8:30 a.m.
REPORTED
BY:
Kathy L. Soper,
CSR,
RPR
California
CSR No.
8519
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1
Confidential.
Mr. Ishaug.
It
was
authored by
2
3 4
THE WITNESS:Ishaug.
MS.
BRUCE:Is
it all
right
if
I
--
5 6
7
MR. WEBER: Sure.
MS.
BRUCE: Can we mark
this,
please.
8 9
(Exhibit
BY MS.
176 marked
for
identification.)
BRUCE:
10
11
Q.
Okay.
This is an e-mail
Do you
initially
authored
2008.
12
by you sent to Dan Titus on March 20,
13
14
recognize this e-mail?
A.
Q.
I
do.
15
And you sent
this to Mr. Titus?
you are referencing
16
17
A.
Q.
Correct.
In this e-mail
a
matter
about
18 19
that occurred.
Can you
tell
us
a
little
bit
20
21
A.
Q.
this incident. Would you like
You can
I
me
to read the e-mail?
22
23
if
you want.
A.
think this will tell the story as
as
I
24
accurately
Q.
recall.
25
Actually,
if
you can,
first just tell
me
a
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1
2
little
A.
bit in your
own
words what you
remember about the event.
3
4 5
Well, granted,
months,
two gentlemen
this is
a
year and five
four months ago, so
-- there
my
were
on
a
that walked into
store
6
7
busy Saturday
in
March and
looking to
purchase
a
fancy road bike.
8 9
They came in looking
Madone.
I
for
a
Trek 5.0
informed them that both
it
was
a
10
11
good option,
introduced them to the LeMond
brand, and showed them the LeMond Zurichs
12
13
that
we had on
the sales floor and said,
a
"This bike would be
good value,
less
14
15
expensive, lighter weight,
and would
fit
better,"
because
both of those riders were
16
taller riders,
So
I
and Trek has a,
a
generally,
LeMond
17
shorter top to dimension than
and the ergonomics
did.
18
19
suggested that both the value
and
fit
of the LeMond
them.
20
21
would be
a
better option for
a
After introducing
bicycle,
some
the two to the
22
spending
couple of hours doing
and
23
general
fitting
telling
them
about
24 25
the value proposition, how the bikes work,
telling
them how they could
expect the bike
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to ride, offering test rides, which they
generously took advantage off, both of the
4 5 6
7
riders indicated that they were very interested in the LeMonds, but the model 2007 and year that 1 had on the floor was they were more interested in the 2008 colors
a
and options.
So we
8
9
pursued that,
me
and they were
in contact with
and they would
following the test ride
know
10
11
saying that they were going to be coming in
like to
if
1
1
was going
12 13
to be in.
1
1
indicated that
had
would be.
phone
received another follow-up
through
a
14
15
call saying that they the bicycles directly
actually procured
relationship
like
us
16
17
18 19
with Mrs. LeMond, Kathy LeMond, through
their
mothers,
and
that they
would
to continue to offer our services, assemble
the bicycles,
fit
the bicycles,
sell
"1
them
20
21
additional products
discount,
more than happy to
at
a
significant
1
at which point
said,
would be
22 23
fit
you to the bicycles
and assemble the bicycles at our market
24 25
rate,"
and "Please bring
the bikes in,
we
will
help you out."
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When
the bicycles were brought in,
Greg LeMond's
attached to the bicycles were packing slips
shipped
house
-- bicycles shipped to
4
5
on Greg LeMond's account with the
6 7 8 9
pricing of the manufacturer's landed cost. There were three bicycles shipped,
two bicycles brought
into
my
store.
I
prompted to where the third bicycle was. One of the gentleman said, "We might be
10
11
selling that
one
to cover the cost of the
first
two
bicycles."
As
12
you can imagine,
I
this
a
made my
13
14
15
16
17 18
blood boil.
goes
think there is
saying that
like this:
And pardon my candor.
Don't shit where you eat.
Q.
Okay.
At the time these young men came in,
did you know who they were?
A.
Q.
No.
When
19
did you find out
who
a
they were?
was
20
21
A.
They were speaking of
situation that
not public knowledge.
They were speaking of
22
the fact that Greg had just returned
from
a
23 24 25
trip
to Taiwan where he
a
was
actively
pursuing
new
I
partner.
said, "That's interesting,
And
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because Trek has
a
partnership that goes for
manager from
a
two more years with LeMond."
I
know the product
4
5
LeMond, and he was working on
2000 and
I
then '9 and '10 product
line that
I
had some
6
7
information on, because
Dealer Advisory Board.
am
part of their
and
8 9
Having Aaron Mock's drawings
seeing the fact that he is putting
product
a
2009
I
10
11
line together,
I
said, "That
s
kind
a
of odd that Mr. LeMond would be seeking
12 13 14
partnership outside of the Trek family."
And they said,
"No,
no,
we know
this because
part
my mom knows
Kathy LeMond,"
he
15
16
17
that he just got back and
ways with Trek.
Hmmm.
is looking to
Hearsay, innuendo,
people
18
19
picking
up
the information off the Internet.
Disregarded
it,
took
it
at face value,
20
21
whatever.
Well,
knew an awful
When
I
it
lot
turns out those young
more
men
22
23
than
I
did.
found out that they were
24
buying the bicycles through Mr. LeMond,
25
furthering the sort of fact that
Mr.
LeMond
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3
probably was, ln fact,
credence
over in Taiwan
lended
some
looking for another partner,
to the fact that
he would
have
no
4
5
value in the relationship
around
that
I
offered to
the Trek/LeMond partnership,
a
i.e., selling
or under the
6
7
retailer in
a
market, which is not
acceptable
under his contract
8
Taft-Hartley Act.
You
9
can't sell directly to
a
10
11
consumer behind your
Q.
I
retailer's
back.
a
am
just going to
What
go
back to the kids for
12 13 14
second.
relationship did
you
ultimately find
LeMond?
out that they had to Kathy
15
16
17
18 19
A.
I
believe
one of the young men's mothers
were friends with Kathy LeMond,
and that
they had spoken
mother
Can you
Q.
--
Kathy had spoken to his
that,
help
"My son
me
is looking
a
for
a
bike.
20
21
find
deal?"
know
So
before this, did you
that friends
able to get
either.
22 23 24 25
and
family of Greg
and
I
LeMond were
bikes?
A.
Q.
No,
don't believe
they did,
They
--
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need to happen,
consumers?
A.
Q.
are you talking about
3
4
That's right.
What would
describe what you are talking
5 6
7
about.
A.
Consumers
would come in,
we
would present
and
a
the best bike for the consumer,
8
oftentimes
the rack,
when we would
pull
"No,
LeMond from
I
9
they would say,
won't ride
10
11
one of those.
He has been,
you know,
he as been
besmirching Lance Armstrong,
12
using his celebrity
and Lance."
So
status to throw stones
13
14
there
was
a
public push-back,
15
16
consumer
Q.
push-back,
to the LeMond brand.
Prior to the controversy with Mr. Armstrong
began in 2001
17
18
publicly, there
was an issue
that arose in 2000 where
it
was
announced
19
that
LeMond
accessories
would be sold
in
20
21
Target stores.
Did you become aware of that, and
22
23 24
if
A.
I
so,
what was your
reaction?
did,
and
that
was
initially
what
promoted
us
to really evaluate
the LeMond line in our
25
store.
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It's
retailer
when
very
a
difficult
mass
to sell
a
premier level product at
an independent
3
4 5
large
retailer is
marketing the
same brand.
It
really
we
marginalizes the quality of the products
6
7
sell.
And so
at that point
when
it
was
really
8 9 10
11
difficult for
in
a
us to promote
LeMond
was
bicycles
and
positive light
it
being
promoted through Target Corporation,
seeing the
same brand
at Target,
and as an
12
13
14
independent bike dealer,
it
was
very
difficult.
Q.
As
an
avid cyclist,
even
known
prior to purchasing
of Greg LeMond?
15
Freewheel, you had
A.
Q.
16
17 18 19 20
21
Correct.
Was
he somebody that you held
in very high
I
esteem?
A.
His accomplishments,
I
would say
would
place them at the top of the
accomplishments for cyclists,
list
not
of
just
I
an
22
23
American cyclist, and
a
I
would say
did have
very high regard for Mr. LeMond as an
and as
a a
24
25
athlete
Q.
human being.
And as
result of
the regard with which you
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