Photo via Wikimedia Commons.
Photo via Wikimedia Commons.

A judge has ruled that a hedge fund’s lawsuit alleging three Kardashian sisters committed fraud and breach of contract regarding the funding of a line of beauty products should be decided by an arbitrator rather than the court.

On June 15, Los Angeles Superior Court Judge Richard Fruin affirmed a tentative ruling he issued eight days earlier regarding Hillair Capital Management’s lawsuit before he took the case under submission.

Fruin’s final ruling also imposes a stay on the lawsuit pending the outcome of the arbitration.

Hillair filed the lawsuit March 21. It says the fund put up millions of dollars in July 2014 to help Kim, Khloe and Kourtney Kardashian keep the beauty line afloat after former distributor Boldface encountered legal and financial troubles.

Hillair’s suit stated the fund agreed to pay for the ongoing distribution costs of the line and that the Kardashians said they would continue to be the face of the line and actively promote it.

“They convinced the plaintiffs to put up millions of dollars to fund their line,” plaintiffs’ attorney Gregory Fayer said during the June 7 hearing.

Fayer said the sisters had a duty to market and support the line.

Lawyers for the Kardashians maintained all of Hillair’s allegations are subject to arbitration based on written contracts between the parties. One of the sisters’ attorneys, Jonathan Steinsapir, told Fruin that Hillair has failed to abide by the parties’ agreements, not the Kardashians.

— City News Service 

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