Another day, another Lindsay Lohan Legal Battle. Lindsay Lohan and D.N.A.M. Apparel Industries have come to a settlement over a lawsuit stemming from the partnership between D.N.A.M. and Lohan’s clothing line 6126. Let’s back up a bit and start from the beginning, because this case has many twists and turns.
Once upon a time, Lindsay Lohan, like so many other celebrities, created a clothing line, 6126, which mostly produced leggings. In January of 2013, Lohan and her business partner, Kristi Kaylor, sued D.N.A.M., a manufacturing company who partnered with 6126 to manufacture and distribute 6126 products.
The lawsuit alleged breach of contract, fraud, and trademark infringement. Amongst their claims in the suit Lohan alleges that D.N.A.M. failed to pay Lohan for sales that occurred at Neiman Marcus, Nordstrom, Bloomingdale’s and DASH, that D.N.A.M. failed to pay her over $500,000 in royalties owed to her stemming from a trademark license agreement, that D.N.A.M. made false representations with an intention to deceive Lohan and Kaylor into signing the agreement, and that D.N.A.M has infringed the 6126 trademark.
D.N.A.M. then countersued Lohan and Kaylor for breach of contract, claiming damages of $5 million. The company claimed that Lohan’s party girl image and ensuing problems with the drugs, alcohol, and the courts has devalued the 6126 brand. The company claims that once Lohan began to face her legal and substance abuse problems, buyers began to cancel orders causing the brand to suffer, which caused D.N.A.M.’s profits and revenue to suffer.
Lohan however, never responded to this counterclaim and U.S. District Judge Fernando M. Olguin, promptly dismissed Lohan’s suit because of her failure to answer. Now, you may recall that Lohan was in rehab in the past year in an attempt to clean up her act and her image. Lohan contested the dismissal by claiming that because she was in rehab, her attorney “was unable to contact “her” to discuss the case” and once she completed her program, she was “overwhelmed since leaving rehab and dealing with sobriety and a miscarriage.” Yes, that’s right. The miscarriage heard ’round the world on Lohan’s reality show on OWN, was part of the excuse Lohan used to contest the dismissal of her lawsuit.
U.S. District Judge Fernando M. Olguin bought the excuse and under the Federal Rules of Civil Procedure released Lohan from default based on excusable neglect and allowed her to respond to the countersuit, denying all of D.N.A.M.’s allegations. Now, because Lohan used her rehab and miscarriage as her reasoning for failing to respond to the countersuit, D.N.A.M. then wanted to cross-examine Lohan in court about her rehab and miscarriage.
On the eve of trial and cross-examination, the two parties came to a settlement and agreed to resolve all claims and that D.N.A.M. would pay a settlement of $150,000 to Lohan and Kaylor. Some may argue that settlement was eagerly made by Lohan to prevent any sort of cross-examination of her rehab and miscarriage, as some have stated that the miscarriage was a means “to garner sympathy and explain unprofessional behavior.” Since the settlement sum is 15% of what Lohan originally claimed her damages were, it could be likely that she didn’t want to risk revealing anything else about her rehab and miscarriage.
And so, another Lohan Legal Battle comes to an end.
- “Lindsay Lohan Settles Lawsuit, Avoids Testifying“, thefashionlaw.com
- “Lindsay Lohan Settles Lawsuit with Clothing Company, Banks $150K“, radaronline.com
image: Rafael Amado Deras