LeMond Cycling, Inc. v. Trek Bicycle Corporation
Filing
139
Attachment 5
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. 5
Case 0:08-cv-01010-RHK-JSM Document 139-6
Filed 08/05/09 Page 1 of 9
ZASTROW EXHIBIT 49
Dockets.Justia.com
Case 0:08-cv-01010-RHK-JSM Document 139-6
Filed 08/05/09 Page 2 of 9
Page 1
UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA
LeMOND
CYCLING,
INC.,
Plaintiff,
vs.
TREK BICYCLE
Case
No.
08-1010
CORPORATION,
Defendant/Third-Party
Plaintiff,
vs.
GREG LeMOND,
Third-Party Defendant.
video Deposition of
MALCOLM
DAVIES
Thursday, May 14th,
9:07 a.m.
2009
at
GASS
WEBER MULLINS LLC 309 North Water Street Wisconsin Milwaukee,
Reported
by Kealoha A.
Schupp,
RPR
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Page 68
1 2 3 4
5 6 7
BY MR.
Q
I
this document, what
MS.
we see here?
RAHNE~bjection,
asked and answered.
same
think
he responded
do
to
my
question the
way,
but
you're happy to
you do
it
again
-- or I'm
welcome
to have
it
again.
THE WITNESS Okay.
WEBER:
a
8 9
Yeah, so she's making
comment
for the judge's
benefit later on.
For purp -- our purposes
A
10
11
-in Exhibit
Okay.
12 13
Q
-- explain to
195.
Okay.
So
the jury what
we
see here
14
15 16
17 18
A
this is
an
my
e-mail that
I
--
I
received
an
e-mail from one of
Schmiedel,
direct reports,
Harald
an
in early October 2007 relating to
published
interview that Greg LeMond gave to Tour magazine.
The
interview
was
early in September 2007.
part is
an
19
And the second
me
e-mail from
20
21
forwarding Harold's e-mail but also commenting
from myself to John Burke.
It
was
to me,
I
think.
to John
I
22
23 24 25
I'm sorry.
October 9th,
I've
I
got to read the dates again.
The
same day.
comment
I
I
made
obviously where
said that
thought, whilst
had
great respect for Greg and his achievements in the
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Page 69
I
1
2 3
sport,
when
I
would say that Greg was one of
a
my
heroes
was
young guy
in the cycle
cycling
business.
I
followed his tour wins in the -- in the
Whilst
I
4
5 6 7
late
'80s
very closely.
had respect
for what
he had
achieved there,
I
thought commercially he was an
in Tour magazine,
was
idiot,
because his comments
his
8 9
response to that
damaging
particular question
and
very
to his reputation
Trek's reputation,
10
11
mostly because you have to understand at this time of
12 13
year what -- what we're trying to do. very focused period in the year It's
a
from the late part
through
of August,
very end of August,
we
14
15
16
till
the middle
of October where
are
trying to sell
season.
our product
in for the following
We're
trying to get the dealers to buy the
the brand and
the
17
bikes basically and commit to selling
commit to
18
19
selling the line of bicycles for
year right through until the
following
summer
of 2008
20
21
would be the case here.
So we had
spent
show,
considerable
efforts
We
22
preparing for
a
big trade
Euro-Bike.
had
23
24
spent considerable
efforts preparing for
bikes on
show,
house shows,
getting the
LeMond
making sure we had
25
the required marketing materials to support the sale,
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Page 70
1
2
training our salespeople
were
on the technology
that
We
we
offering.
on
We
did
all
these things.
and
put
it
a
3
4
all
-- in front of the dealers,
comes
then this
article
between
out in Tour magazine
with Greg making
5 6
7
statement that basically undermines the relationship
Trek and LeMond.
And from our
perspective,
we
saw
that
8 9
as very damaging,
because what happens in that
situation
is the dealers get this feeling of
They
10
11
uncertainty.
dealers.
They
-- they don't like uncertainty,
be
like things to
They are
They
very simple and
people.
12 13
14
straightforward.
They buy bikes.
straightforward
sell bikes.
They get behind
something
the brand.
on
They don't want to have
know
going
15 16
that they don't
what's going to
come down
the
road six months from now.
And my
17
18 19
salespeople were very
about
frustrated that they spent time talking
issue
was
this
instead of selling the bikes.
Harald Schmiedel
20
21
extremely frustrated having spent, you know, days
LeMond
in front of dealers selling Trek bikes,
Fischer bikes
bikes,
22
to have part of his time,
which is
a
23
24
fairly
short with each dealer,
highjacked by
conversation about what Greg had said in Tour
magazine.
And from my
25
perspective,
it
was
very
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1 2
damaging.
John,
And
I
that's
was
why
I
I
sent the
--
the note to
because
-my
was, you know,
expressing
3
4
Q
the frustration
of
organization.
overlap between
the two?
Is there
No
some
connection between Tour magazine and
some
5
Euro-Bike?
A
Is there
6
7
connection
other than the fact that this
particular issue is the issue that is published
coincide with the
drops
So
to
8 9
show.
The show runs four days.
It
on the doormat
the day the show opens.
10
11
one
that Tour
out
that's -- that's the -- it's the magazine would be at the show selling
12
or giving
--
you have people
so
reading
it
having
13
just received
But no
Q
it,
that's the connection really.
connection.
a
14
15
16
17 18
A
--
no commercial
All right.
attendees
Yes.
And describe
But
it
is
--
do
I
understand
it
to be
then an edition that's geared
specifically for
at Euro-Bike?
19
Q
for the jury
How
a
little
bit about
there?
How does
20
21
Euro-Bike.
does
it
work?
Is Trek the only
company there?
Are your competitors
22
23 24
25
A
it
happen?
Euro-Bike
is probably
now
the largest
show
in the
world for bicycle products,
high-end sport part of
major companies
the market.
So
all of the
would be
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1
2 3
at that show.
I
can't even begin to tell
are there.
you how
many companies there
But every major manufacturer
would be
show.
We
4 5 6
7 8
introducing their
were one off
oh[
I
2008 product
line at this
I
don't
know[
guess at least 100
companies
selling high-end
road bikes
in that
business.
Typically dealers
which
come
to our booth[
9
is about
a
600 square meters
of product.
It's
10
11
quite
big space[
but
typically
they would come and
spend anything
were
--
depending
on how
committed they
brands[
30
12 13 14
15
to the
-- the Trek family of
90 minutes
30
a
minutes to
on our booth.
So we have
very limited timet or our salespeople
limited time to get the job done.
They
have
a
very
16
17
--
you know[
they're talking
both Trek[ both
program[
a
about
a
huge range of products[
18
LeMond[
Fischer[
Diamante[
our after-market
19
business
in general.
They
an issue
really don't have
comes
lot of
20
21
timet and
as
if -- if
15
that is really irrelevant
goes[
up and
far
as
selling the stuff
and
22
23
highjacks 10[
minutes of their timet
then they get
pretty frustrated[
actions.
damages
And
that
comes
out
in their
and
24
it reflects
in our business[
it
25
our opportunity
to sell the product.
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1
Q
Okay.
Now,
a
you mentioned
that this is -- did
Tour?
you say
2
3
A
it's It is
German language magazine,
German
language magazine, yes.
events in Germany
4 5 6
7
Q
Did you have follow-up house
after
we
Euro-Bike?
A
Yeah.
We
would have house
a
shows
in Germany where
would get to spend
bit
more
time with each dealer
8 9
and we would be able to focus
specifically
on
their
is --
order.
I'm -present
new
So
our
-- our goal at the house
Our goal at the Euro-Bike
shows
10
11
let's
back up.
show
is to
12 13
14 15
the product and get the dealer excited about
Our goal at
a
stuff.
house show
is to
So
specifically
15
get,
a
I
need three of those bikes in size
inch in blue,
detailed order.
16
17 18 19
the difference between the two.
spend
a
that -- that's The dealer would
lot
more
time with us at the house show.
-- that house show conversation experience gets further highjacked by
But again,
if
that
a
20
21
about Greg's
comments
Now,
in Tour magazine, then that's
you
wasted time.
Q
if
-that, in fact, in these
22
And
is
it
your understanding
23
German house shows
thereafter that the issues that
part of the
24 25
were raised in Tour magazine did highjack
conversations?
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I
1
2
A
It definitely
in October,
Euro-Bike
continued.
mean,
you see
the timing
I
think
is important here, because
this
the
message came
3
4 5
which is sometime
show.
after
the
It
would have been during the German
and
we
dealer
of the
impact
house
shows,
it
were
would
have been the result
see the
6 7 8 9
you know,
starting to
of dealers not buying LeMond bikes or not
up again
I
wanting to sign
And, you know,
for the LeMond line in 2008.
10
11
think it's -- it's clear that from the timing of the message that it prevailed for more
than just
a
couple hours.
Were you aware
12 13
Q
All right.
at that time that from
time to time in years past Mr. LeMond had raised the
14 15
idea of, gee,
I'd like
to see more LeMond-branded
bikes sold in Europe?
A
16
17
Yes.
And was
Q
this Euro-Bike effort
an
and the house
show
18 19
efforts
A
effort
I
you and your team were making
to
bring about that resolve?
20
21
Definitely.
starts
here.
mean
this is the start -a
I
think
I
said earlier in answer t~
You have
question before that
it
do
22
to get the dealers on board
and
23
24
25
with the brand, with the product,
if
you
don't
that,
you
will --
you can do no
--
no
an endless
amount of consumer marketing subsequentlYi
if
you
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