Georges Marciano's involuntary bankruptcy may be annulled

Apr 30, 2012, 08:52 ET from ENIGMA COMMUNICATIONS INC.

MONTREAL, April 30, 2012 /PRNewswire/ - If we can rely on comments by three judges in the California Court of Appeal, the involuntary bankruptcy of Guess Jeans founder Georges Marciano, declared on December 28, 2010, may be annulled.

At a hearing in the Court of Appeal last March concerning the Gary Iskowitz case, the three judges made several comments, one of which suggests that the trial judge, Victoria Kaufman, may have erred when she based her decision to declare Mr. Marciano bankrupt in his absence on unproven factors. According to the hearing transcripts, "The court awarded $24 million in emotional distress damages and allocated them $10 million to Gary for emotional distress, $10 million for shame, mortification and hurt feeling; to Theresa, $1 million for emotional distress and $1 million for shame, mortification and hurt feelings; and, to Carolyn, $1 million for emotional distress and $1 million for shame, mortification and hurt feelings. In spite of all that, there was no evidence from any therapist, psychologist, psychiatrist, or any professional person that they suffered any type of emotional distress (...), it just seems like there should be some."

The involuntary bankruptcy declared in California led to the seizure, in fall 2011, of all Mr. Marciano's assets in Canada, a decision that was annulled in December 2011 by the Honourable Mark Schrager, Quebec Superior Court. In that case, American trustee David Gottlieb, facing contempt, has been summoned to appear in Quebec Superior Court on June 11 to answer for his actions.