Famed fashionista Todd Oldham got tossed a life preserver this morning in his breach-of-contract case against Old Navy.
A Manhattan appeals court reinstated claims by Oldham’s L-7 Designs that the mass-market retailer wrongfully fired him as creative director and broke a deal to develop a clothing line named after him.
In a unanimous ruling, the U.S. Second Circuit Court of Appeals said Old Navy “made no argument, and pointed to no evidence” challenging the designer’s claim that he was “repeatedly and widely praised” by management during his one year-plus tenure with the company.
The three-judge panel also said Old Navy failed to negotiate in good faith after citing “economic conditions” as the reason it couldn’t keep its promise to launch a “Todd Oldham branded line of apparel” in 2008.
Oldham initially demanded $75 million in lost royalties and “reputational damages” over the busted deal, but later lowered that amount to $20 million.
He also said his firing — which came after he filed a sealed suit over the licensing agreement — cost him $4 million in fees for the remainder of his three-year contract.
Old Navy’s lawyer didn’t immediately return a request for comment.