The millionaire magnate who steered the rise of Guess jeans had sued five former employees of his real estate company for embezzlement and fraud, but when those employees filed cross-complaints alleging libel and intentional infliction of emotional distress a year ago, the French designer's case went downhill. Marciano had sold his stake in Guess and left the company in 1993.
Los Angeles County Superior Court Judge Elizabeth White dismissed Marciano's suit in December, after Marciano refused to comply with discovery or show up for scheduled depositions, according to lawyers for the former employees.
Then in March, White struck Marciano's answer to the cross-complaints, rendering him mostly unable to mount a defense. White's decision came after Marciano continued to disobey discovery orders, the employees' lawyers said Tuesday.
"We got a lot of gifts in this case," said R. Rex Parris, a Lancaster, Calif., attorney who represented two former Marciano office workers.
In May, White held a court trial to determine whether Marciano was liable in the cross-complaints against him. After the judge determined that he was, a jury trial on the amount of damages began last week.
The jury held Marciano liable for slightly more than $74 million in damages for each of the five former employees, for past and future suffering, injury to reputation and future economic loss, according to their lawyers.
During what was essentially a default "prove-up" last week, Browne Woods George partner Marcy Railsback referred to herself as counsel of record, according to a transcript. Browne Woods partner Eric George declined to comment Tuesday, except to say that he has represented Marciano in connection with his complaint and the cross-complaints and might represent him on appeal.
Marciano used at least 17 separate law firms throughout the nearly two-year proceedings, according to Parris. Michael Reznick, a lawyer who described himself as Marciano's "personal attorney" in court July 22, did not return a call late Tuesday afternoon.
On that day, Marciano came to court in what Parris and his fellow lawyers described as a "surprise" appearance. Marciano had never actually been served with a subpoena, but he accepted White's offer to take the stand "with pleasure," according to a transcript of the proceedings.
George wasn't present, but Railsback summoned him to court once Marciano appeared, according to the transcript.
"One of the big factors is that [Marciano] came into trial and he admitted to the jury that he was on a crusade and indicated that he doesn't intend to stop," said Michael Partos, a Los Angeles lawyer at Cozen O'Connor who represented one of the former employees.
Parris said that the size of the verdict was partially the result of putting on a significant amount of evidence, including expert testimony, that described the depression his two clients had experienced because of Marciano.
"Now they're prone to clinical depression," Parris said. "Their ability to experience joy in life is severely diminished."
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