LeMond Cycling, Inc. v. Trek Bicycle Corporation

Filing 139

Attachment 8
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).

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LeMond Cycling, Inc. v. Trek Bicycle Corporation Doc. 139 Att. 8 Case 0:08-cv-01010-RHK-JSM Document 139-9 Filed 08/05/09 Page 1 of 7 ZASTROW EXHIBIT 52 Dockets.Justia.com Case 0:08-cv-01010-RHK-JSM Document 139-9 Filed 08/05/09 Page 2 of 7 Page 1 UNITED STATES DISTRICT LeMOND DISTRICT COURT OF MINNESOTA CYCLING, INC., Plaintiff, vs. TREK BICYCLE Case No. 08-1010 CORPORATION, Defendant/Third-Party Plaintiff, vs. GREG LeMOND, Third-Party Defendant. video Deposition of DEAN GORE Thursday, May 14th, 12:24 p.m. 2009 at GASS WEBER MULLINS LLC 309 North Water Street Wisconsin Milwaukee, Reported by Kealoha A. Schupp, RPR 9740073e-e43a-4ee6-926b-291215930e80 Case 0:08-cv-01010-RHK-JSM Document 139-9 Filed 08/05/09 Page 3 of 7 Page 72 1 2 EXAMINATION BY MR. Q A WEBER: 3 4 5 Counsel had shown you some pages in the powerpoint. Mm-hmm. Q A And -- and 6 7 8 9 Yes. Q -- let me just go back to a few of these. a If you'd turn several pages from the end, there's there to "Early 2006. product A reference Trek revamps the LeMond 10 11 line -- Great Product." Okay. Do you see that? 12 13 14 Q All right. Tell us what happened LeMond product in 2006 with respect to the flying dealers Tour de Georgia, A line, to Waterloo, the marketing campaign, 15 16 17 etc. 2006 was LeMond -- I think it was a milestone year for I because we -- we, saying because was -- I I 18 19 was living the LeMond brand. That's -- that's what did every day Fischer. was come in and work on LeMond and 20 21 And it was -- LeMond had -- was 22 introducing better product marketplace. product than Trek had in the 23 It when had an we industry-leading carbon they 24 25 that launched to our dealers, were very, very excited about it. We flew in 100 9740073e-e43a-4ee6-926b-291215930e80 Case 0:08-cv-01010-RHK-JSM Document 139-9 Filed 08/05/09 Page 4 of 7 Page 77 1 2 appearances or whatever the contract says, but beyond that I'm not healthy. brand. Please don't I can't do promotions for the 3 4 5 6 7 call. Don't ask." during And then also that time frame best The it was in my best interest or the company's interest to not have Greg in the public as well. old adage that, bad press. you know, there's no such thing as 8 9 In this case there were -- it was very detrimental to have -- to give any editor access to I 10 11 Greg because never had -- I never knew what Greg are that me was going to say, and the chances it not 12 13 being positive was far too great for that I to be able my to use the media as an outlet could use as -- 14 15 Q in a marketing strategy. From time to time over the relationship Greg made 16 17 18 A remarks that were reported some in the press that caused controversy. Mm-hmm. 19 Q Did you as part of your job do you deal with 20 21 A dealers on an ongoing basis? I do. They -- they know that and I I was the marketing 22 manager for LeMond, have built relationships my 23 24 25 Q with a vast majority of our dealers over 18 years at Trek. And as I understand your distribution channels, 9740073e-e43a-4ee6-926b-291215930e80 Case 0:08-cv-01010-RHK-JSM Document 139-9 Filed 08/05/09 Page 5 of 7 Page 78 1 2 correct me if I'm wrong, but Trek needs to get a dealers to agree to carry A certain line, right? a 3 4 5 Our company is -- and I -- our -- our strategy as think it's worked -- is that our number one goal is When somebody to take care of the dealer. a walks into 6 7 8 bike shop that -- to buy a bike, they don't know what they're going to leave with. They're relying the expertise personnel. on of the bike shop and the bike shop 9 And the bike shop is going to sell what 10 11 they have on their sales So floor. my really fate is -- my fate or 12 Trek's fate is who Q 100 percent in the hands of the person 13 14 runs and buys bikes for the bike shop. As Okay. controversies would be reported involving 15 16 17 18 19 A Mr. LeMond, did it make it easier, harder, or no effect in terms of your ability to work with dealers and get them excited and enthused about the LeMond brand of road bikes? Well, let me give you an example. The -- the average 20 21 bike shop owner is home, -- has mortgaged their their retirement, all of their savings to live -has a 22 this dream of owning bike shop. And rightly so, 23 they are nervous as they can be about what they bring 24 25 into their shop and what -- what they're carrying for inventory. They want to carry whatever is the 9740073e-e43a-4ee6-926b-291215930e80 Case 0:08-cv-01010-RHK-JSM Document 139-9 Filed 08/05/09 Page 6 of 7 Page 79 1 2 3 4 5 easiest story to be tell and whatever they are going to able to sell as quick as possible with the least of discussion amount or overcoming objections. Actually, them, in our how in our training materials to overcome we list here's objections to common 6 7 misperceptions about our bikes. And when the press and, I mean, the -- 8 9 the comments or the dispute and Greg LeMond became between Lance Armstrong public, the conversation 10 11 turned at the dealer level from, designs let's talk about the or the technology of the bike, it turned 12 13 14 into, why is Greg saying that? two? Or what about And this more relationship between these and more doubt just put into the And minds of our 15 think about the retailers. sales call. If for him to 16 17 if the dealer has any doubt, you know what, it's easy say, I'm going to hold on buying more when 18 19 LeMonds this time around the sales rep comes in. And Tomorrow or the next day the Orbea rep comes in. you know what? I 20 21 the guy's going, LeMonds, Orbeas my I just a passed on should probably bring in couple more of a 22 to a fill in that hole. And all sudden 23 24 25 -- month later when my rep goes back in there, he's going to have the conversation again about kicking Orbea back out instead of filling in with 9740073e-e43a4ee6-926b-291215930eBO Case 0:08-cv-01010-RHK-JSM Document 139-9 Filed 08/05/09 Page 7 of 7 Page 80 1 2 more LeMonds. It's just us wasting the time and making 3 4 5 tread water and go back over and over and losing -- you know, And we would come it's all about gaining ground. lose ground every time bad press would the two 6 7 out about the dispute between personalities. and MR. It left doubt in our dealers' minds, happen. I 8 9 that's the worst thing that could WEBER~hat's RAHNE~hank all you have. coming Thank you. 10 11 MS. for in. VIDEOGRAPHERNo MS. further questions? being no further 12 13 RAHNE~o further questions. VIDEOGRAPHER~here 14 15 16 17 questions, Dean Gore. that concludes the video deposition of We're off the record at end of Videotape p.m. * * * * No.2 at 2:12 18 19 (Deposition concluded at 2:12 p.m.) (Original exhibits retained to original by court reporter and attached 20 21 transcript. Copies provided with additional transcripts.) 22 23 24 25 9740073e-e43a-4ee6-926b-291215930e80

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