Fashion Boutique of Short Hills, Inc. v. Fendi USA, Inc.
United States District Court for the Southern District of New York
1998 WL 259942 (1998)
- Written by Sean Carroll, JD
Facts
Beginning in 1983, Fashion Boutique of Short Hills, Inc. (Fashion Boutique) (plaintiff) sold products manufactured by Fendi USA, Inc. (Fendi) (defendant). In 1989, Fendi opened a retail store on Fifth Avenue in New York City. After Fendi opened the store, Fashion Boutique experienced declining sales and eventually closed. Fashion Boutique subsequently sued Fendi for business disparagement, alleging that Fendi employees at the Fifth Avenue store had misrepresented to customers that Fashion Boutique sold fake or inferior Fendi merchandise. Fashion Boutique presented evidence that before Fashion Boutique closed, Fendi employees told several shoppers about the supposedly inferior nature of Fashion Boutique’s products. The alleged comments were often unsolicited in that the customer was not asking about the quality of the products at Fashion Boutique. Fashion Boutique also presented evidence that those shoppers then stopped shopping at Fashion Boutique. Fendi moved for summary judgment, arguing that there was no material dispute that the statements by the Fendi employees were not made with malice.
Rule of Law
Issue
Holding and Reasoning (Cedarbaum, J.)
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