K-Swiss International v. Carter Internacional CA2/8

INTRODUCTION

Defendant and cross-complainant Carter Internacional, S.A. appeals from the trial court’s judgment entered in favor of plaintiffs and cross-defendants K-Swiss International Ltd. and K-Swiss, Inc. (collectively, K-Swiss). On appeal, Carter challenges the trial court’s order sustaining without leave to amend K-Swiss’s demurrer to Carter’s cross-claims for breach of the implied covenant of good faith and fair dealing, breach of the implied warranties of merchantability and fitness, and fraud. Carter also challenges the trial court’s order granting summary judgment in K-Swiss’s favor on Carter’s remaining cross-claims. Because Carter has not shown any of the challenged rulings were erroneous, we affirm.

BACKGROUND

1. The parties’ agreements K-Swiss manufactures clothing and footwear under the K-Swiss and Palladium brands. Carter is a distributor who manages retail stores across the globe, including in the Caribbean, Central America, South America, Mexico, and Israel. Around early 2012, Carter’s president, David Assis, met Larry Remington, who was then the president of K-Swiss’s Palladium brand. Assis proposed creating a partnership between Carter and K-Swiss,…