A bit.
When we last left the cashmere conundrum, we were waiting for developments on the motions brought by certain defendants (the US-based ones) in both the Bliss and Noro actions. And now, we have them.
If you recall (what, you don’t?), certain defendants had moved to have the parts of the complaints that were based on federal law dismissed, so that all that remained were the counts based on state law. If the counts based on federal law were dismissed, the defendants argued, then the rest of the action ought to be dismissed from U.S. District Court as well because the proper venue would have been state court.
The defendants had mixed success. Last week, the court issued orders for both lawsuits (Bliss PDF, Noro PDF). In the Bliss action, the count based on the Lanham Act (false advertising under federal law) was dismissed, but the count based on RICO was not (although the grounds for the RICO claim were cut down).
In the Noro action, the Lanham Act count was dismissed, which left only allegations based on state law. However, the court retained jurisdiction over the action because of the diversity of citizenship (there are companies based in Japan, Pennsylvania, and New York, and individuals from New York and New Jersey).
If you need a scorecard, this is what remains in each lawsuit…
In the Bliss action–
I. (state law) Breach of Express Warranty of the Merchantability of Goods for Resale to Consumers
(against Knitting Fever, Sion Elalouf and Jay Opperman)
II. (state law) Breach of Implied Warranty of the Merchantability of Goods for Resale to Consumers
(against Knitting Fever, Filatura Pettinata, Sion Elalouf and Jay Opperman)
III. (federal law) Explicitly False Advertising Claim Pursuant to the Lanham Act
(against Knitting Fever)
IV. (federal law) Injury to Business and Property Pursuant to Racketeer Influenced and Corrupt Organization Act
(against Sion Elalouf)
allegations of mail fraud and wire fraud remain; allegations regarding witness tampering, obstruction of justice, and exerting influence to obtain documents from a Coats employee struck out
V. (federal law) Conspiracy to Cause Injury to Business and Property
(against all defendants except Knitting Fever)
VI. (state law) Perfidious Trade Practices (Deceit) under the Common Law of Unfair Competition
(against Knitting Fever and Sion and Diane Elalouf)
VII. (state law) Motion to Pierce the Corporate Veil of the Elalouf-Controlled Entities
(against Knitting Fever and the Elaloufs)
In the Noro action–
I. (state law) Breach of Express Warranty of the Merchantability of Goods for Resale to Consumers
(against Knitting Fever, Sion Elalouf and Jay Opperman)
II. (state law) Breach of Implied Warranty of the Merchantability of Goods for Resale to Consumers
(against Eisaku Noro & Co., Knitting Fever, Sion Elalouf and Jay Opperman)
III. (federal law) Explicitly False Advertising Claim Pursuant to the Lanham Act
(against Knitting Fever)
IV. (state law) Perfidious Trade Practices (Common Law Unfair Competition)
(against Knitting Fever and Sion and Diane Elalouf)
V. (state law) Civil Conspiracy
(against all individual defendants, not companies)
VI. (state law) Motion to Pierce the Corporate Veil of the Elalouf-Controlled Entities
(against Knitting Fever and the Elaloufs)
The files linked above include the reasons for judgment. If you hadn’t read anything up to now, finding it tl;dr, the memoranda (reasons) provide a good summary of the allegations made in each lawsuit. I feel compelled to caution first (due to certain earlier observations) that just because these allegations are summarized in the reasons here does not mean that a court has determined that all the allegations are actually true; the test for whether allegations should be dismissed generally requires the court to assume the allegations in a pleading are true.
What’s next? The actions could go forward, or one or more of the parties could appeal one or more of these orders; the moving defendants, for example, did not get everything they asked for. In any event, this action will move about as quickly as… my knitting. Which is somewhat existent, but not quite.
ETA: also, the court ordered that these two actions be consolidated for the purposes of discovery and trial.