DeCoro Wins Legal Battle With Natuzzi

January 22, 2007  by in UnCategorized   

By Home Furnishings Business in Leather Upholstery on January 2007 A lengthy, 5-year legal battle between leather specialists DeCoro and Natuzzi has ended with a Hong Kong court dismissing the case “in its entirety.”

The ruling was handed down last week.

In 2001, Natuzzi had applied for an injunction to prevent competitor DeCoro from hiring three former Natuzzi employees—two prototypists and a designer—while those people were under a non-compete agreement. Natuzzi had also sought relief against DeCoro for allegedly enticing the three individuals to breach their employment contracts.

The injunctions on the hiring of the two prototypists were set aside because the non-compete agreements did not extend to Asia. The court cleared DeCoro of wrongdoing in the case of the deisgner, finding the agreement to be unenforceable as in unreasonable restraint of trade.

Natuzzi had also alleged that DeCoro had knocked off eight Natuzzi sofa designs. During the trial, the claim was reduced to include five, but the Hong Kong Court dismissed each of the claims as groundless.

“We are delighted with the outdcome, which totally vindicates our business practices,” said Luca Ricci, president and chief executive officer of DeCoro. “The court decision clears us of any wrongdoing and incidates that we are flourishing internationally because of our committment to superior craftsmanship and our ability to meet customers’ needs, not for any other reason.”

Ricci said the company will donate 10 percent of the legal costs recovered from Natuzzi to charity.