Gildan Sees $2M Arbitration Award Confirmed

Law360 (July 10, 2019, 8:13 PM EDT) -- Wholesale printing company Ennis Inc. can’t overturn an arbitrator’s award that forced it to pay Gildan Activewear Inc. $2 million to cover a severance payment Gildan made after it purchased Ennis’ shirt-making division and fired an executive, a Texas federal court has ruled.

In a 21-page order filed Tuesday, U.S. District Judge Ed Kinkeade said Ennis had clearly agreed to indemnify Gildan for the severance payment if Gildan decided to fire the executive in question following its $110 million purchase in 2016 of former Ennis subsidiary Alstyle Apparel LLC.

Judge Kinkeade said an arbitrator had acted fairly and in full compliance...

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