ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Wednesday, December 28, 2016

Contractual Brouhaha in the Fashion World

There is major drama happening in the world of high fashion, and it all revolves around an alleged non-compete. Carolina Herrera has sued Oscar de la Renta to keep Laura Kim from working for the rival company. According to CH, Kim signed a non-compete with CH which gave it the option of paying Kim fifty percent of her salary and health benefits in exchange for Kim not competing against it for six months. The six months seems like a suitably short period of time in the fast-moving fashion industry, especially as it has important impacts on New York Fashion Week in February. 

The judge ordered a TRO which has since been lifted pending a preliminary injunction hearing in the new year. In the meantime, you should go to this article for all of the juicy details on what exactly went down between Kim and CH. 

http://lawprofessors.typepad.com/contractsprof_blog/2016/12/contractual-brouhaha-in-the-fashion-world.html

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Comments

I think that this suit is fair because Kim was compensated so she wouldn't compete, making it entirely unfair to CH. As the post indicates, I find it strange that the non-compete period is so short, as six months is next to nothing.

What would be interesting to know is if Kim actually provided confidential information on CH that could hurt its business.

Posted by: Reed James | Dec 29, 2016 6:56:37 AM

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