Opinion ID: 2469348
Heading Depth: 1
Heading Rank: 6

Heading: April-October 2008 Negotiations

Text: On April 2, 2008, L-7 (Vayness) initiated negotiations to finalize the licensing agreement for the Branded Line by emailing Fahlbusch (Old Navy) L-7's standard form license agreement and a term sheet that outlined a three-year initial term and annual guaranteed minimum royalties (the April Proposal). Compl. ¶ 44. The email suggested that Old Navy formulate [its] initial thoughts, needs and objectives and then present to [Oldham] in [M]ay while Fahlbusch (Old Navy), Vayness (L-7), and Old Navy's attorney begin work on the language of the contract. Ex. 17. Commencing in May 2008, Old Navy made material representations that were false, as [L-7] subsequently learned. Compl. ¶ 47; accord Ex. 19. For example in May of 2008, Fahlbusch (Old Navy) assured Vayness (L-7) that she was already working with our legal team on the licensing agreement template. Ex. 19. But throughout the late spring and summer of 2008, L-7 repeatedly followed up with Fahlbusch and Old Navy's Executive Vice President, Douglas Howe, seeking feedback on the April Proposal and on a redirection Old Navy was taking in its approach, with little or no followup. Exs. 19-20. During one meeting in June of 2008 at which Oldham (L-7), Howe (Old Navy), and Tom Wyatt (another Old Navy executive) were present, Old Navy proposed postponing discussions of the Branded Line. Nevertheless, on June 12, 2008, Vayness (L-7) indicated to Fahlbusch (Old Navy) that things are proceeding in the right direction with the branded line. Ex. 19. In a late July 2008 email, Fahlbusch (Old Navy) suggested that the reason for Old Navy's delay in getting back to L-7 was that next steps on the Branded Line license would be impacted by who is named President. Id. Vayness (L-7) responded the same day, reminding Fahlbusch (Old Navy) that we have a provision in the contract calling for the license agreement to be entered into by October 1st. Id. On September 2, 2008, Vayness (L-7) emailed Fahlbusch (Old Navy) seeking Old Navy's feedback on the terms set forth in L-7's April 2008 email, indicating that L-7 was ready to discuss [11 points] as early as possible. Ex. 20. L-7 followed up with emails and telephone calls to Fahlbusch (Old Navy) on September 7, 9, and 10, 2008. On September 10, 2008, Fahlbusch (Old Navy) recommended that Oldham start working directly with Howe as it seems we all have a different understanding of the numerous conversations in recent months related to the branded line. Id. On September 30, 2008, Wyatt (Old Navy) advised L-7 in a telephone call for the first time that Old Navy wished to postpone the signing of a license for the Branded Line `indefinitely.' Compl. ¶ 52 (quoting Wyatt). [5] In response, L-7 stated that it expected Old Navy to provide it with definitive dates to restart negotiations, enter into the licensing agreement, and launch the Branded Line, and compensation for the postponement of the initial October 1, 2008 signing date. Old Navy failed to provide a response within a week as promised.