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Commercial Law Keyed to Zierdt, 1st Ed.
In re G.S. Distribution, Inc.
Citation:
331 B.R. 552 (2005)Facts
G.S. Distribution, owned indirectly by Giuseppe Scavetta, operated a retail jewelry store on Madison Avenue in New York. After a brief unsuccessful relationship with an Italian jeweler named Ciribelli, the Debtor entered into an exclusive distribution contract with Repossi on September 9, 2004. Under this contract, Repossi provided jewelry with a wholesale value of over $5 million to the Debtor on a consignment basis. The jewelry was imported into the United States under a Temporary Importation under Bond (TIB) arrangement, which prohibited the sale of the goods in the United States. Despite selling approximately $500,000 worth of Repossi jewelry, the Debtor never paid Repossi for any of the invoiced items. Repossi filed an action in District Court and obtained a preliminary injunction prohibiting the Debtor from selling the jewelry or using the Repossi trademark. Shortly after Repossi sought permission to move for summary judgment and contempt sanctions, the Debtor filed for Chapter 11 bankruptcy protection. In the bankruptcy proceedings, the Debtor sought authorization to conduct private sales of the jewelry, while Repossi moved to dismiss the bankruptcy case or lift the automatic stay to continue the District Court litigation.
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