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Lindsay Lohan embattled in breach of contract suit

While many people in New Jersey may not think that Hollywood stars are involved in complex contracts or contract disputes, many of them are. Actors and actresses not only work on television and movie productions, many of them also own or run businesses that capitalize on their fame. They, too, are business people and from time-to-time disputes arise.

Most recently, Hollywood actress Lindsay Lohan has sued, and has been sued, for breach of contract. The litigation has arisen from her 6126 Leggings Collection which she produced with the help of her business partner in 2009 after joining forces with DNAM Apparel Industries. In January, Lohan sued DNAM for breach of contract, trademark infringement and fraud. In that suit, she asked for $1.1 million in damages. According to Lohan and her business partner, the company was not appropriately including her in merchandising meetings and they failed to pay the pair their share of the royalties.

Recently, DNAM has countersued claiming that Lohan breached the contract between the two. They are asking for $5 million in damages from the breach. DNAM claims that Lohan’s erratic behavior and reputation for drug use has hurt the 6126 Collection. Furthermore, they allege that buyers pulled out of purchasing the leggings because they did not want to be associated with Lohan.

While Lohan has not directly responded to these allegations, her business partner claims that there are no merits to DNAM’s case. She says that there was no morality clause in the contract that required Lohan to act a certain way. Furthermore, she claims this countersuit is just a frivolous suit in which DNAM is trying to get out of paying what it owes.

Now the court will be left to sort out what the terms of the contract were, if a material breach occurred and whether any damages are owed.

Source: The Huffington Post, “Lindsay Lohan Sued For $5 Million, Apparel Company Says ‘Drug-Addled Image’ Destroyed Leggings Brand,” May 21, 2013

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