My Thoughts on the Vera Bradley Lawsuit

I sometimes forget that what may be "breaking news" here is of very little importance outside of my little bubble in the world.  For those of you who do not know already, I live close to Fort Wayne, the same city that the Vera Bradley company calls "home".

The big news here in Fort Wayne is regarding a lawsuit that was filed this week against the Vera Bradley company.  The lawsuit was filed by the company's former supplier, claiming breach of contract.  You can see the full article and get more details here.

Basically, the company was sued by its former supplier, Robert Hinty and his three companies, because it moved its production operations in-house earlier this year.  Hinty was not only a supplier, but a former employee of the company, who took out a $3 million loan to grow his business as a supplier for Vera Bradley.

Do I think this lawsuit is going to be a problem?  No, I think it's just a minor hiccup, and I'm guessing that the ladies running the show there knew it was coming.

Having worked in the legal field for several years, I always think its funny to watch Boston Legal (type) shows, where someone gets sued one day, and the very next day they show them in Court duking it out.  In real life, it never happens that way.  It takes months, usually years, before the case goes to Court.  Nine out of ten times the case settles before it ever makes it to that point.

I think that will be the outcome here.  Vera Bradley will file an answer to the complaint.  The parties will exchange discovery requests.  It may even make it as far as mediation.  But in the end, I think the parties will come to some private settlement.  Hinty will be able to pay back his loan, and may even get some start-up capital for his next venture, and both parties will move forward.

Of course, I could always be wrong!  It's just my personal thoughts on the matter.  However, I will keep an eye on how the situation progresses and keep you updated.


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