Designer Rachel Roy has won the first round in her $20 million lawsuit that she filed against the Jones Group for “ruining” her brand.
The New York Supreme Court has granted Roy preliminary injunction. The Jones Group which was recently acquired by private equity firm, Sycamore Partners, bought 50% of Roy’s brand in 2008, but abruptly last month cut ties with the designer.
Roy’s complaint stated that the Jones Group was “working to eviscerate her brand by abruptly shutting down its operations, firing personnel that run the business, and stonewalling all efforts by Ms. Roy to continue to conduct business.” While Roy maintained creative control of her brand for the duration of her venture with Jones, she claims that Jones conducted business behind her back.
Preliminary injunction is an emergency, yet, temporary order that aims to maintain the status quo of the parties’ operations. In this case specifically , it prevents the Jones Group from selling Roy’s brand and its intellectual property to Bluestar Alliance, a brand management group, which currently maintains an array of brands.
Roy’s lawyers had to show that there was irreparable harm, which means that Roy has or will suffer a harm and that money damages or any other non-equitable form of relief will not suffice as a remedy.
Roy’s team team had to also show that such harm is “likely” (and not merely “possible”) and also that Roy is likely to succeed in proving all of the necessary elements of her case
In response to the courts ruling Roy stated “I am pleased with today’s ruling and that the Court has recognized my rights to creative control and approval over the designs and licenses for my brand.”