MONTREAL, July 24, 2012 /PRNewswire/ - The United States Court of Appeals has sided with Georges Marciano ordering that all procedures regarding the involuntary bankruptcy be suspended thereby ordering the US trustee David Gottlieb to cease all procedures, including the sale Mr Marciano's belongings and four properties in the Los Angeles area.
Guess Jeans founder Georges Marciano, involved in a California court saga, appealed Judge Elizabeth White's ruling to pay $260 million in moral and punitive damages to former employees and affiliated parties solely by default; this verdict was rendered without giving Mr. Marciano the opportunity to present any defense. For Mr. Marciano's US attorneys, Daniel J. McCarthy and Michael E. Reznick, this latest Court of Appeal ruling is a significant step in the right direction recognizing the merit of Mr. Marciano's position.
This decision from the U.S.Court of Appeals is a second win for Mr. Marciano in recent weeks since he has also just won a case before the California Court of Appeal, which deemed the damages of $55 million awarded by Judge Elizabeth White in one case to Gary Iskowitz, his wife and his business partner, to "shock the conscience," being based on insufficient proof. The three judges at the California Court of Appeal unanimously reversed that award and ordered the matter to be remanded to a different judge, finding Judge White abusive and that she had repeatedly personalized the issue of damages. The appeal from the remaining $205 million in judgments remains pending before the same State Court of Appeals.
Furthermore, on December 8, 2011, Honourable Justice Mark Schrager of the Superior Court of Quebec deemed the seizures of goods belonging to Mr. Marciano and third parties (money, property, artworks, luxury cars, jewels, and so forth) by the US trustee David Gottlieb to be illegal and cancelled them. He ordered the US trustee and PricewaterhouseCoopers to return, at their own expense, all assets seized from Mr. Marciano and the third parties involved, including the documents that were seized.
NOTE: A copy of the California Court of Appeal's ruling can be found at: http://www.enigma.ca/en/media-zone.html
SOURCE ENIGMA COMMUNICATIONS INC.