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Keywords

damagesarbitrationappealtrialmotiontrademarkwrongful terminationcivil procedurearbitrator
arbitrationappealtrialmotiontrademarkcivil procedure

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Pour Le Bebe, Inc. v. Guess? Inc., 112 Cal.App.4th 810, 5 Cal.Rptr.3d 442, 03 Cal. Daily Op. Serv. 9123, 2003 Daily Journal D.A.R. 11,454

Facts

Pour Le Bebe (PLB) entered into multiple license agreements with Guess?, Inc. (Guess) to utilize its trademarks for clothing and home furnishings. A dispute arose when Guess claimed PLB failed to pay required royalties, leading to arbitration. PLB countered with claims against Guess, including wrongful termination of the licenses and sought to disqualify Guess's counsel due to alleged conflicts of interest. The arbitration panel ultimately ruled in favor of Guess, awarding significant damages.

Pour Le Bebe (PLB) entered into multiple license agreements with Guess?, Inc. (Guess) to utilize its trademarks for clothing and home furnishings. A dispute arose when Guess claimed PLB failed to pay required royalties, leading to arbitration.

Issue

Did the arbitration panel err in denying PLB's motion to disqualify Guess's counsel based on alleged conflicts of interest, and was the arbitration award procured by undue means?

Did the arbitration panel err in denying PLB's motion to disqualify Guess's counsel based on alleged conflicts of interest, and was the arbitration award procured by undue means?

Rule

The court applied the legal principles regarding conflicts of interest and the standards for vacating arbitration awards under California law, specifically focusing on whether the award was procured by 'undue means' as defined in the Code of Civil Procedure.

The court applied the legal principles regarding conflicts of interest and the standards for vacating arbitration awards under California law, specifically focusing on whether the award was procured by 'undue means' as defined in the Code of Civil Procedure.

Analysis

The court analyzed the evidence presented regarding the alleged conflict of interest involving Guess's counsel and determined that even if there were issues of loyalty, they did not meet the threshold for vacating the arbitration award. The court emphasized that PLB had not sufficiently demonstrated that the arbitrators exceeded their authority or that the award was procured by undue means.

The court analyzed the evidence presented regarding the alleged conflict of interest involving Guess's counsel and determined that even if there were issues of loyalty, they did not meet the threshold for vacating the arbitration award.

Conclusion

The Court of Appeal affirmed the trial court's decision to confirm the arbitration award in favor of Guess, concluding that the award was valid and not subject to vacation.

The Court of Appeal affirmed the trial court's decision to confirm the arbitration award in favor of Guess, concluding that the award was valid and not subject to vacation.

Who won?

Guess?, Inc. prevailed in the case because the court found that the arbitration award was valid and not procured by undue means, despite PLB's claims of conflict of interest.

Guess?, Inc. prevailed in the case because the court found that the arbitration award was valid and not procured by undue means, despite PLB's claims of conflict of interest.

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