NEW YORK, March 21, 2016 /PRNewswire/ -- The Supreme Court of the State of New York entered Judgment against Madison Avenue Diamonds LLC (d/b/a Ivanka Trump Fine Jewelry) and Shaindy Lax, a principal of Madison, in the amount of $3,059,590, plus interest on that amount at 9% per annum until the Judgment is satisfied in full.
Under the contract at issue, Madison was required to make a series of payments to KGK totaling $3 million for jewelry delivered by KGK to Madison and subsequently sold under the Ivanka Trump Fine Jewelry brand. While Madison made the first specified payment, it refused to make all subsequent payments to KGK as required. Madison argued that it was relieved of its obligation to make the additional payments as KGK allegedly had been one day late in returning certain computer design (CAD) files as specified under the agreement.
Earlier, in rejecting Madison's defenses to payment in their entirety, Judge Charles E. Ramos ruled that "Madison was never released from its further payment obligations to KGK" under the contract. (NYS Court, NY County, Decision and Order, Index No. 159045/2012, filed 8/21/2015). "KGK had complied fully with all of its delivery obligations to Madison, and Madison not only received the benefit under the agreement but "has also failed to show any damages". Accordingly, Madison was compelled to make all of the agreed payments to KGK for the jewelry provided.
Moreover, the Court rejected Madison's belated attempt to amend its claims and defenses to payment by arguing that the jewelry provided by KGK was "of substandard quality". KGK repeatedly has asserted that these allegations had no basis in this lawsuit. In granting KGK's motion for summary judgment before trial, the Court agreed and denied Madison any leave to amend its allegations.
In response to the ruling, Sanjay Kothari, Vice Chair of the KGK Group, had stated:
"As KGK has maintained throughout the course of this unfortunate lawsuit, Madison never had any basis for withholding the contractual payments to which it had agreed. As it has done throughout its 110-year history, KGK complied with all obligations to its customer here. We are pleased that the Court saw the matter exactly as we had, and that now we can return our attention to supplying the industry with beautiful gemstones and jewelry."
For further information, please contact:
KGK Group, C.F.O.
+852 2733 2222 Ext 133
About KGK Group
The KGK Group, established in 1905 by Kothari Family of Jaipur (India) is a global corporation with fully integrated operations in the Gemstone, Diamonds & Jewelry industry, having presence across 15 countries. A pioneer in the world of precious stones, KGK Group has been sourcing, manufacturing and distributing colored stones, diamonds and jewelry for decades. Celebrating their 100 year anniversary in 2005, KGK today is established in almost every commercial center in the world, coming closer to its customers than ever before. KGK's rough diamonds are directly sourced from the mines in Africa, Russia, Canada and Australia through mining conglomerate like DeBeers, Al Rosa & Rio Tinto- ensuring nothing but the finest diamonds on the market. KGK always believes in the foundation of excellence and trust. www.kgkgroup.com
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SOURCE KGK Group