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SOUTHEAST TEXAS RECORD

Thursday, March 28, 2024

Printed hosiery manufacturer sues Scrubsco, alleging trade secrets violations

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A Galveston manufacturer of printed hosiery is suing an Ohio man and business, alleging unpaid balance and stolen designs.

Celeste Stein Designs filed a lawsuit Nov. 3 in Galveston County District Court against Scrubsco and Thomas Landrith of West Chester, Ohio, alleging liability for debt and misappropriation of trade secrets.

According to the complaint, Celeste Stein Designs sold goods to Scrubsco on a contract for an open account in the regular course of business. The suit alleges Scrubsco received and accepted the goods, but has yet to pay the amount due, $34,452, despite the plaintiff sending two letters demanding payment on past due invoices.

The suit also says that since the time that Celeste Stein Designs stopped providing its goods to the defendant, Scrubsco has continued selling goods with the plaintiff's designs and patterns.

As a result of the misappropriation and illegal use of these designs and patterns, the plaintiff has suffered significant damages, according to the suit.

Celeste Stein Designs seeks the sum of the unpaid account, plus interest, attorney fees, actual damages and exemplary damages not to exceed $75,000. The plaintiff is represented by attorney Alton C. Todd of The Law Firm of Alton C. Todd in Friendswood.

Galveston County District Court case number 15-cv-1174.

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