G-III Apparel Group Wins Dismissal of Breach of Contract Claims

Paul, Weiss won the dismissal of breach of contract claims asserted by plaintiffs Calvin Klein, Inc. and Tommy Hilfiger Licensing LLC against G-III Apparel Group, Ltd.

The plaintiffs—licensors of the Calvin Klein and Tommy Hilfiger trademarks—had entered into licensing agreements with G-III and filed a complaint in the Supreme Court of the State of New York alleging that G-III misappropriated Calvin Klein generic apparel designs in breach of purported “design rights” contract provisions, and that G-III breached its contractual obligation to assist with the transition of the licensed business as the license agreements approach expiration.

Ruling from the bench after oral argument, Justice Anar Rathod Patel granted G-III’s motion to dismiss. With respect to the alleged breach of the “design rights” provisions, Justice Patel agreed with G-III that the applicable license provisions protected only intellectual property and that the plaintiffs had failed to identify any protectable features in the garments that G-III allegedly copied. On the transition claims, Justice Patel found that under the plain language of the license agreements, G-III’s transition obligations arose “only upon expiration or termination” of the licenses, and that the plaintiffs had failed to state a claim of breach of contract because their allegations focused on alleged conduct that took place prior to expiration of the license agreements. The parties each have additional claims pending against each other.

The Paul, Weiss team includes litigation partners Gregory Laufer and David Friedman, who argued G-III's motion.