LOS ANGELES, July 28, 2009 (GLOBE NEWSWIRE) -- A Los Angeles County Superior Court jury today set damages against Guess ? Inc. Founder Georges Marciano at approximately $370 million for defamation and intentional infliction of emotional distress and for committing those acts with malice, oppression and/or fraud. Mr. Marciano is the co-founder of Guess? Inc., one of the world's most successful apparel and accessory companies. His business operations include investments in fine art, which he has bought and sold through various auction houses over the past 20 years.
Lead attorney in the case, R. Rex Parris, explained that "the jury found Marciano liable to each of five cross-complainants for approximately $69 million in compensatory damages and $5 million in punitive damages for a total of about $74 million for each plaintiff or a total of $370 million."
"This is one of the largest defamation verdicts ever handed down in Los Angeles County. I am proud to have led this fight to defend the good name of these hard working former Marciano employees against his multimillion dollar smear job. This verdict shows that being rich does not mean you have the power to ruin the lives of other people on a whim or suspicion," Parris said.
In August 2007, Georges Marciano brought a lawsuit against his former employee, Joseph Fahs. In February, 2008, Marciano amended his complaint to incorporate four additional former employees: Miriam Choi, Camille Abat, Steven Chapnick, and Elizabeth Tagle. Marciano's complaint alleged that Fahs, Choi, Abat, Chapnick and Tagle embezzled money and stole property from Marciano.
All of Marciano's former employees filed separate cross-complaints against him alleging Marciano committed defamation and intentional infliction of emotional distress.
Marciano's original complaint against his former employees was dismissed December 31, 2008.
A liability trial was held in Los Angeles Superior Court on May 15 and May 18, 2009. Judge Elizabeth Allen White found that Marciano was liable for defamation and intentional infliction of emotional distress against each cross-complainant, and that he had committed those acts with the malice, oppression and/or fraud necessary to justify an award of punitive damages.
Following the liability prove-up, Judge White set a jury trial for damages for July 20, 2009. After hearing hours of live testimony and reviewing dozens of exhibits, the jury found Marciano liable to each of the five cross-complainants for approximately $69 million in compensatory damages and $5 million in punitive damages, a total of about $74 million each. The combined value of the verdict is about $370 million.
Attorney R. Rex Parris made the opening statement for Choi and Abat, and was primarily responsible for the conduct of the trial. Parris made the closing argument for the amount of damages for all of the plaintiffs with the attorneys for the Fahs, Chapnick and Tagle providing closing arguments regarding their individual clients and telling the jury that Parris would explain the appropriate amounts for each plaintiff. David Wheeler gave a closing argument to the jury on behalf of all cross-complainants on the need for punitive damages.
During the trial, Marciano made a surprise appearance. Upon examination conducted by Parris, Mr. Marciano stated that he was on "a crusade" and that he would not stop until he had "justice". Asked by Parris if he would like to apologize to the cross-complainants for the havoc he had wreaked upon their lives, Marciano responded, "Is a joke?"
Miriam Choi and Camille Abat were represented by R. Rex Parris and Alexander R. Wheeler of The R. Rex Parris Law Firm. Joseph Fahs was represented by The Law Offices of Alain Bonavida. Steven Chapnick was represented by Cozen O'Connor. Elizabeth Tagle was represented by The Diaz Law Firm.
Background:
In a complaint filed on August 13, 2007 in the Superior Court of the State of California for the County of Los Angeles - Central District Mr. Marciano alleged that the cross-complainants conspired and acted in concert with each other to steal his assets, money, art work, wine collection and other property. Marciano claimed he was the victim of a theft of millions of dollars worth of funds and fine art. He alleged the cross-complainants were aware of each others' plans to steal his art and that beginning around February 2005 they conspired to commit one of the largest art thefts United States' history, in terms of quantity of art stolen. He further alleged they gained access to the art, hid, stole and then converted the pieces. The art allegedly stolen includes important works from renowned contemporary artists such as John Chamberlain, Ed Ruscha, Robert Rauschenberg, Jeff Wall, Jim Dine and Roy Lichtenstein. Mr. Marciano's complaint against the cross-complainants was dismissed as without merit on December 31, 2008.