Jolna, Azteca, Lubells Dispute Over Denim Lines
Sun Valley, Calif.-based Jolna Design Group has filed a lawsuit against former executives Jeffrey and Kimberly Lubell and private-label denim manufacturer Azteca Production International Inc., claiming that the Lubells stole trade secrets and competed unfairly against the company when the Lubells left to launch a new denim line with Azteca.
As reported in California Apparel News in May, the husband-and-wife design team lost the rights to their two denim labels, Bella Dahl and Jefri Jeans, prior to joining parent company Jolna, which purchased the labels in November 2000. The Lubells continued to head up the Bella Dahl and Jefri Jeans divisions until they left to team up with Azteca to launch Hippie Jeans. Jolna retained the rights to both labels, which the Lubells founded in 1999.
According to Kerry Jolna, president and chief executive officer, the couple have deliberately confused retailers by “using similar fabrics and styles [to the ones used in their two Jolna labels], and in some cases, identical [ones].” Jolna said many of his buyers are confused about whether Hippie Jeans and Bella Dahl are the same company, because both lines are so similar.
Jolna officials said the lawsuit filed on June 14 in Los Angeles Superior Court is not seeking a specific amount in damages; rather, the filing is an attempt to come to an agreement and “restrain the defendants’ conduct.”
“So far our accounts are extremely pleased with the end-result retailing of our product,” Jolna said of the recent showing of Bella Dahl and Jefri Jeans at Fall II/Holiday market in Los Angeles. “What we would like at this point is for the Lubells to run their own company off the strength of their own input and the strength of their own fabrics and designs, and let us continue to run our own company.”
The Lubells responded that Jolna violated a financial agreement made between the company and the Lubells prior to Jolna’s purchase of the labels in a private sale from CIT Commercial in November 2000.
The Lubells said they plan to counter sue the company for an unspecified amount.
Paul Guez, chief executive officer for Azteca, said he supports the Lubells.
“In the [contemporary] market many designers are inspired by the same designs,” said Guez. “[The Lubells] helped create the design and concept behind [Bella Dahl and Jefri Jeans]; they’re still entitled to make a living and express themselves.”
