Von Dutch Cross-Complaint Filed by Audigier
Call this Chapter Two in the growing legal battle between Von Dutch Originals and the Los Angeles apparel company’s former head designer.
After being sued by Von Dutch in June for taking kickback money from suppliers, Christian Audigier filed a cross-complaint maintaining that Von Dutch still owes him at least $5 million in commissions.
The legal tussle between Von Dutch and Audigier began after Audigier left last August to start his apparel company, Ed Hardy Vintage Tattoo Wear, a line of trendy trucker caps, T-shirts, shirts and pants similar to the Von Dutch line.
In June, Von Dutch filed a lawsuit against Audigier; his nephew, Vincent Audigier; and three independent sales representatives, alleging they had taken at least $3 million in kickback money from Von Dutch suppliers who wanted to sell their goods to the apparel maker. Audigier and the other defendants deny the charges.
On July 25, Audigier filed a cross-complaint in Los Angeles Superior Court. In that complaint, Audigier said Von Dutch Chief Executive Tonny Sorensen agreed to pay him $180,000 a year plus a commission of 2 percent of total gross sales. Audigier said he never received those commissions because Sorensen never put several streams of profit on the Von Dutch books, court documents said.
Attorney John Connolly, who represents Von Dutch, said the former head designer is not owed one penny. “When he left, there was a dispute that he was owed something, which at the time was in the low six figures,” Connolly said. “We maintain he is owed nothing.”
Audigier maintains that profits for Von Dutch pet merchandise, shoes, children’s clothing, jewelry, motorcycles, toys and online sales were diverted. Also diverted were profits from franchise stores in Miami, Las Vegas, Chicago and Beverly Hills and company stores in Santa Monica and on Melrose Avenue, the complaint said.
Audigier also stated in court papers that he and Sorensen had a joint venture to do garment deals as a new company called NTL Genius Group but he never received his 50 percent share of profits.
Audigier, who used to design for Diesel and Fiorucci, began working for Von Dutch in May 2002, when he became the company’s vice president and head designer. His cross-complaint stated that during that time, he helped grow sales from $85,000 to more than $100 million by 2004.
“Essentially, if you look at what the sales were, Christian, under his agreement, should be due an amount in excess of $5 million,” said Jim Turken, Audigier’s attorney. “We are seeking an accounting and ascertaining of precisely what the amounts should be.”
No trial date has been set in the case. —Deborah Belgum