Travelers May Have To Cover Russe Clothing Price Suit Costs

Law360, New York (June 22, 2012, 2:38 PM EDT) -- A California appeals court on Thursday found that Travelers Property Casualty Co. of America may be responsible for covering Charlotte Russe Holding Inc.'s legal costs in litigation over the women's clothing store's alleged underpricing.

A three-judge panel agreed with Charlotte Russe that the underpricing claims against Russe by clothing suppliers Versatile Entertainment Inc. and People’s Liberation Inc. could be reasonably interpreted as disparagement claims because the low prices led potential purchasers to believe that People's Liberation was not a “premium,” “high-end” brand. Disparagement claims are covered...
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