Headhunter Sues Ed Hardy for Fraud

Carlson-Thomas Personnel in Los Angeles has filed a fraud and breach-of-contract lawsuit in California’s Superior Court against Don Ed Hardy Inc. in connection with its hiring of Henry Mandell, president and chief operating officer.

The suit, filed Oct. 6, alleges that in April 2006, Blaise Abergel, a principal of Ed Hardy accountant Blaise Abergel Agency, asked Carlson-Thomas’ co-founder, Frank Thomas, to assist in the search for a chief financial and operating officer for the Los Angeles–based apparel maker. Thomas claims that a fee of 25 percent of the chosen candidate’s annual income was discussed and agreed upon verbally and in writing with Blaise Abergel on behalf of the Abergel Agency and Ed Hardy. According to Thomas, he had worked with the Abergel Agency in a similar capacity in the past.

Pursuant to the agreement, Thomas presented Mandell as a candidate for the job in April, but, according to the suit, the headhunter was led to believe Mandell had not been hired at the company. Thomas said he discovered sometime in July that Mandell was working at Ed Hardy as president and chief operating officer. Thomas’ requests for payment went ignored, the suit alleges.

Carlson-Thomas is seeking general damages of $62,500 (25 percent of the $250,000 salary the headhunter estimates Mandell is earning) and punitive damages.

The original suit included a charge of intentional interference with contractual relations against Mandell, alleging that he knew or should have known of Ed Hardy’s contractual obligation to Carlson-Thomas and should not interfere with the plaintiff’s payment. On Nov. 6, Carlson-Thomas filed a request for dismissal of this charge.

A court date of Dec. 4 was set for a hearing, but the trial was postponed. A followup date has not been given.

Thomas and Carlson-Thomas’ lawyer, Ronald L. Gruzen, did not respond to requests for comment.

Mandell declined to comment.

—Erin Barajas