Contesting Georges Marciano Asset Seizure and Receivership

Represented Georges Marciano, Guess brand creator, to quash and invalidate the seizure obtained ex parte against him and to cancel the interim receivership of PWC.

Matter Value: CAD 260,000,000

December 08, 2011

Georges Marciano, one of Guess creator, sued some of his ex-employees in the US for fraud. They filed counterclaims for millions of dollars for defamation and hurt feelings, which the trial judge ultimately granted, after denying Mr. Marciano’s right to a full and fair hearing. Although these judgements have pending appeals in the US, the ex-employees petitioned Mr. Marciano into bankruptcy in the US against his will.

On September 15 and 16, 2011, the ex-employees obtained an ex parte secret order to search and seize Georges Marciano’s residence and businesses in Québec, taking everything with them including a diamond valued at 16 million dollars, works of art, and luxury cars. It was one of the biggest and most aggressive seizures ever seen in Québec.

This seizure was contested by Mr. Marciano and by the businesses seized and ultimately, the seizure was declared invalid on December 8, 2011 by the Superior Court of Québec. The court ordered the return of all the seized assets, including monies, notwithstanding appeal. The court considered that the ex-employees’ attorney neglected to abide by its duty to full and fair disclosure of the facts to the judge who first authorized the search and seizure, and that the US judgments were contrary to public order.

Although the judgment quashing the seizure is executory, there is a pending appeal, which was heard on March 28, 2012 and the parties are awaiting the decision of the Court of appeal.

Georges Marciano was represented by Davis LLP in Montréal, with a team that included Jean-Yves Fortin, Mélanie Martel and Hubert Sibre.