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-   -   Sam Leccia's Debut on hold (http://www.cigarasylum.com/vb/showthread.php?t=47513)

maninblack 07-16-2011 11:57 AM

Sam Leccia's Debut on hold
 
Sam just wrote on FB that his new cigar debut has been put on hold due to legal reasons (Oliva?). Also he's been barred from IPCPR due to legal reasons. I was really looking forward to his newest creation. Hope everything works out for you Sam! Best of luck.

jesseboston81 07-16-2011 11:59 AM

Re: Sam Leccia's Debut on hold
 
I think I read that Oliva sued him to enforce a do not compete clause in his contract with them.

Edit: Yup, here it is. Oliva is claiming Sam is under a five-year non-compete agreement.

maninblack 07-16-2011 12:03 PM

Re: Sam Leccia's Debut on hold
 
I hope it can be resolved without getting too nasty in the courts. Sam is a talented guy.

Emjaysmash 07-16-2011 12:43 PM

Re: Sam Leccia's Debut on hold
 
Yep. I knew about the legal stuff, but ig uess now his line won't be coming out anytime soon. Hopefully it all works out. I've seen pics of the cigar and the band, it looks nice.

jesseboston81 07-16-2011 12:52 PM

Re: Sam Leccia's Debut on hold
 
I'm no expert, but as far as my amateur analysis goes, if a court is already preventing Sam from releasing his line and attending ICPCR then things don't look good for him. That smells like a preliminary injunction, which would mean that Oliva was able to persuade a judge that it has a good chance of prevailing in the overall lawsuit to enforce the agreement. That would mean that the only significant issue might wind up being whether five years is an appropriate length of time.

Again, this is all just my amateur reading of the few facts as we have them.

LasciviousXXX 07-16-2011 01:00 PM

Re: Sam Leccia's Debut on hold
 
Wow! 5 years is a hell of a length of time for a non-compete clause. I hope everything is able to be worked out in an amicable fashion.

chippewastud79 07-16-2011 01:06 PM

Re: Sam Leccia's Debut on hold
 
On the surface it certainly seems like the split with Oliva may not have been amicable. Sam may have been asked to leave under less than ideal circumstances for him and now Oliva is showing that perhaps they are less than happy with Sam trying to show them up with a new brand of hype stemming from the notariety of Oliva making him the face of the NuB and Cain lines. :hm

jesseboston81 07-16-2011 01:10 PM

Re: Sam Leccia's Debut on hold
 
There is definitely an injunction at play.

Brutus2600 07-16-2011 01:18 PM

Re: Sam Leccia's Debut on hold
 
That's really unfortunate since I think highly of both Sam and Oliva. Nice folk on either side...unfortunate to see them at odds.

However, as much as this is a brotherhood to us, I know this is a business for them. Contracts are contracts, although it seems odd that Sam would go ahead with a new cigar line if he knew he had a standing non-compete contract with Oliva.

I'm sure there is more to this story than we know.

pgagnon 07-16-2011 01:31 PM

Re: Sam Leccia's Debut on hold
 
My thought too Brian. It IS a weird move for the outsiders :/

jesseboston81 07-16-2011 01:45 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by Brutus2600 (Post 1338726)
...although it seems odd that Sam would go ahead with a new cigar line if he knew he had a standing non-compete contract with Oliva.

This strikes me as the strangest part of this conflict, because Sam probably (I can't be sure because I'm not familiar with the specifics of Florida law) could have gone to a court to get a ruling as to the enforceability of the non-compete clause before investing resources into starting his new company. Maybe he thought he was in safe territory, outside of the clause?

If we're looking for a silver lining here, at least this means that any cigars he's already had made will likely be well aged before he can sell them!

icehog3 07-16-2011 01:54 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by jesseboston81 (Post 1338735)
If we're looking for a silver lining here, at least this means that any cigars he's already had made will likely be well aged before he can sell them!

Although 5 years will take them well beyond The Rule of 3s. ;)

jesseboston81 07-16-2011 02:00 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by icehog3 (Post 1338743)
Although 5 years will take them well beyond The Rule of 3s. ;)

Oh you're right! Petition to limit Sam's DNC to no more than three years!!

Brutus2600 07-16-2011 02:05 PM

Re: Sam Leccia's Debut on hold
 
Reasonable...I'm sure it will hold up in court :D lol

loki 07-16-2011 02:06 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by Brutus2600 (Post 1338726)
That's really unfortunate since I think highly of both Sam and Oliva. Nice folk on either side...unfortunate to see them at odds.

However, as much as this is a brotherhood to us, I know this is a business for them. Contracts are contracts, although it seems odd that Sam would go ahead with a new cigar line if he knew he had a standing non-compete contract with Oliva.

I'm sure there is more to this story than we know.

i don't get a warm fuzzy feeling from anyone trying to stop someone else from making a living. when you're knowledge and experience is in one area, i don't see how you can limit a person from using that to provide for his family

hscmit 07-16-2011 02:11 PM

Re: Sam Leccia's Debut on hold
 
non compete clauses are fairly standard in many industries especially when their is a significant investment made by the company into an individual (as in this case)

Brutus2600 07-16-2011 02:11 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by loki (Post 1338750)
i don't get a warm fuzzy feeling from anyone trying to stop someone else from making a living. when you're knowledge and experience is in one area, i don't see how you can limit a person from using that to provide for his family

While it isn't something I like, it's not an uncommon business practice to have a non-compete clause when an employee leaves a company. I can't say it's not a dick move, but it's not necessarily a surprise either.

chippewastud79 07-16-2011 02:22 PM

Re: Sam Leccia's Debut on hold
 
Oliva put a lot of time and money into the creating, promoting and distributing the NuB and Cain line and had the foresight to make someone like Sam the face of it. It seems Sam thought he was going to able to immediately transfer the success given to him by Oliva to his own company. Apparently Oliva had different ideas and knew this when they put the non-compete clause in his contract. If he had left on good terms, would they allow him to compete immediately? :hm

Also remember that Sam was going to need another large cigar company to make, promote and distribute his new line. Again, Oliva probably doesn't want to allow him to transfer the image/success they created for him to another 'competitor' in the industry. Not knowing much about competition amongst the large companies, it may be to prevent him from helping another company or it may be out of spite based on the nature of the split from Oliva. :sh

area51 07-16-2011 02:26 PM

Re: Sam Leccia's Debut on hold
 
Im disappointed in this delay but hopefully everything works out.

Don Fernando 07-16-2011 02:57 PM

Re: Sam Leccia's Debut on hold
 
Although I understand the lawsuit and with the information I have Oliva is right to sue Sam, I think the timing is aweful and will not only hurt Sam but also Oliva as they are 'the bad guys' now in a lot of comments I read online.

LostAbbott 07-16-2011 03:09 PM

Re: Sam Leccia's Debut on hold
 
Typically NC's don't hold up too well in court. The last one I remember was an exec. leaving Microsoft for Google. MSFT tried to sue but got no where. I am not sure with the case of Sam though because it is very direct competition, also I would not be surprised if his new cigar was very similar to the Cain and NUB cigars he already made.

I would like to put my self on the top of the list for guys to receive all those cigars that are just going to be sitting in a warehouse somewhere for an indefinite amount of time.

bigheadmark 07-16-2011 03:23 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by hscmit (Post 1338753)
non compete clauses are fairly standard in many industries especially when their is a significant investment made by the company into an individual (as in this case)

:tu

MarkinAZ 07-16-2011 03:50 PM

Re: Sam Leccia's Debut on hold
 
Regarding the 5 year Non-Compete clause, I'm wondering:

Does the clause begin when Leccia started employment with Olivia in or around 2008 (ends in 2013), or when Leccia left the employment of Olivia in or around 2010 (ends in 2015)?


jesseboston81 07-16-2011 04:10 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by MarkinCA (Post 1338845)
Regarding the 5 year Non-Compete clause, I'm wondering:

Does the clause begin when Leccia started employment with Olivia in or around 2008 (ends in 2013), or when Leccia left the employment of Olivia in or around 2010 (ends in 2015)?


Assuming it's valid, it's the latter option: 2015.

jesseboston81 07-16-2011 04:14 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by LostAbbott (Post 1338807)
Typically NC's don't hold up too well in court. The last one I remember was an exec. leaving Microsoft for Google. MSFT tried to sue but got no where. I am not sure with the case of Sam though because it is very direct competition, also I would not be surprised if his new cigar was very similar to the Cain and NUB cigars he already made.

The fact that Oliva was able to get an injunction means that they were already able to persuade a judge that they have a good chance (legalese = "substantial likelihood") of succeeding in their overall suit to completely enforce the agreement. That's not a guarantee that Oliva will win, but it's a strong indicator.

Also, Sam's Debut line was directly matching up with, at least to some degree, Studio Tobac's NUB Plus plans: the announced Debut vitolas were 5x60, 7x60, and a 7x52 figurado.

Emjaysmash 07-16-2011 04:34 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by chippewastud79 (Post 1338764)
Oliva put a lot of time and money into the creating, promoting and distributing the NuB and Cain line and had the foresight to make someone like Sam the face of it. It seems Sam thought he was going to able to immediately transfer the success given to him by Oliva to his own company. Apparently Oliva had different ideas and knew this when they put the non-compete clause in his contract. If he had left on good terms, would they allow him to compete immediately? :hm

Also remember that Sam was going to need another large cigar company to make, promote and distribute his new line. Again, Oliva probably doesn't want to allow him to transfer the image/success they created for him to another 'competitor' in the industry. Not knowing much about competition amongst the large companies, it may be to prevent him from helping another company or it may be out of spite based on the nature of the split from Oliva. :sh

This was annouced a little while back. Looks like Torano Cigars was/is going to distribute Sam's new cigars.

area51 07-16-2011 04:47 PM

Re: Sam Leccia's Debut on hold
 
So did Sam actually create the blends for NUB and Cain lines?

LostAbbott 07-16-2011 05:06 PM

Quote:

Originally Posted by jesseboston81 (Post 1338871)
Also, Sam's Debut line was directly matching up with, at least to some degree, Studio Tobac's NUB Plus plans: the announced Debut vitolas were 5x60, 7x60, and a 7x52 figurado.

I am thinking this is where his problems lie. If his three sizes are the same as the nub plus sizes then Olivia would have a very good case.
Posted via Mobile Device

gbum 07-16-2011 06:13 PM

Re: Sam Leccia's Debut on hold
 
Wow... Thats bad... Hopefully they can settel it down in a good term...

MarkinAZ 07-16-2011 06:14 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by jesseboston81 (Post 1338871)
Also, Sam's Debut line was directly matching up with, at least to some degree, Studio Tobac's NUB Plus plans: the announced Debut vitolas were 5x60, 7x60, and a 7x52 figurado.

Quote:

Originally Posted by LostAbbott (Post 1338907)
I am thinking this is where his problems lie. If his three sizes are the same as the nub plus sizes then Olivia would have a very good case.Posted via Mobile Device

For negotiation purposes:

Maybe Leccia could offer up his entire inventory of the above sizes to Olivia, and agree to not create these size vitola' for the next 5 years. In exchange;

Olivia would be asked to drop their law suit/non-compete clause, and allow Leccia to continue forward with his line of cigars, but in different size vitola' other than the size vitola' in question.

Just a thought...

loki 07-16-2011 06:18 PM

Re: Sam Leccia's Debut on hold
 
there's a good way to do this and then there's the way that oliva did it. they could have let sam go to rtda and then settle this for a good portion of his profits for the next 4.5 years and then none of us would be having this discussion

aaron72 07-16-2011 07:01 PM

Re: Sam Leccia's Debut on hold
 
I knew something had to happen. I didn't see how he was going to just be able to come out with his own line without some sort of agreement with Oliva.

chippewastud79 07-16-2011 07:25 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by area51 (Post 1338893)
So did Sam actually create the blends for NUB and Cain lines?

No.

JJG 07-16-2011 09:05 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by loki (Post 1338750)
i don't get a warm fuzzy feeling from anyone trying to stop someone else from making a living. when you're knowledge and experience is in one area, i don't see how you can limit a person from using that to provide for his family

As a completely objective observer who has never smoked or had any interest in this guy's cigars, I have to agree. Is Oliva truly concerned that Sam Leccia is going to put a dent in their bottom line?

On the other hand, NC clauses are standard for most employment contracts, but 5 years? That's crazy and he probably should not have agreed to it in the first place.

chippewastud79 07-16-2011 09:29 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by JJG (Post 1339098)
Is Oliva truly concerned that Sam Leccia is going to put a dent in their bottom line?

Likely not. But remember, Oliva created NUB and Cain and to some extent the image of Sam and he likely didn't leave in an admirable way. It may be purely out of spite by Oliva for Sam thinking he was larger than life when he left. Its all speculation, but they likely wouldn't be trying to blackball him had he left under good terms. :hm

area51 07-16-2011 09:31 PM

Re: Sam Leccia's Debut on hold
 
This is crazy, I have a feeling it may hurt Oliva and help Sam

chippewastud79 07-16-2011 09:37 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by area51 (Post 1339133)
This is crazy, I have a feeling it may hurt Oliva and help Sam

No. Particularly if Sam has to wait 5 years to work in the industry, by the time he can re-enter the market place the mood of the industry may have changed and not crave the 'rock-and-roll'/'bad boy image' that seems to be so popular of late.

Oliva is one of the most respected/consistent/affordable/well-made/highly rated cigars across the board and Studio Tabac seems to be just another step in the right direction for them. :2

loki 07-16-2011 09:40 PM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by chippewastud79 (Post 1339143)
No.

yes

Don Fernando 07-17-2011 04:33 AM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by loki (Post 1339147)
yes

no

neoflex 07-17-2011 07:36 AM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by jesseboston81 (Post 1338871)
Also, Sam's Debut line was directly matching up with, at least to some degree, Studio Tobac's NUB Plus plans: the announced Debut vitolas were 5x60, 7x60, and a 7x52 figurado.

At the same time it's not like these sizes are not becoming the norm among cigar manufacturers. As much as some us agree that they will never be our go to sizes these sized sticks do sell very well. I know at my local the larger RGs always sell out first.

Doctorossi 07-17-2011 08:04 AM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by jesseboston81 (Post 1338871)
Also, Sam's Debut line was directly matching up with, at least to some degree, Studio Tobac's NUB Plus plans: the announced Debut vitolas were 5x60, 7x60, and a 7x52 figurado.

Nub Plus?!

:r :r :r

That's about the funniest idea I've heard since the original Nub!

"Look guys... this little chunk right here is the best part, so we're only going to give you that. Oh, and we're also going to give you all of this other part attached to it. You know, like all the other cigars have."

Which is it, Oliva? "Sweet spot" or not?

gnukfu 07-17-2011 08:35 AM

Re: Sam Leccia's Debut on hold
 
If the issue is a non-compete agreement/contract generally you have to show that there is a likelihood of irreparable harm/injury if the preliminary injunction is not granted.

If the case makes it to trial the judge reviews the agreement using a test typically developed under the case law of that state (common law). There are a number of factors that are considered. Geographic scope, length of time, norms within the industry, and public policy are some factors that are considered. It varies from state to state depending on how the case law developed within that state.

LasciviousXXX 07-17-2011 08:56 AM

Re: Sam Leccia's Debut on hold
 
The biggest positive I can see for Mr. Leccia is that the non-compete covenant could be considered unenforceable if the duration is ruled to be unreasonable or overly broad. And let's face it, 5 years as well as restrictions on a national level could be deemed an unreasonable restriction on Mr. Leccia's ability to earn a living. Logically, I could see the judge scraping the non-compete clause in this case.

jesseboston81 07-17-2011 09:09 AM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by LasciviousXXX (Post 1339527)
The biggest positive I can see for Mr. Leccia is that the non-compete covenant could be considered unenforceable if the duration is ruled to be unreasonable or overly broad. And let's face it, 5 years as well as restrictions on a national level could be deemed an unreasonable restriction on Mr. Leccia's ability to earn a living. Logically, I could see the judge scraping the non-compete clause in this case.

On a related issue, and this goes back to what George was saying about state common law, if this goes to trial and the five year duration is deemed too long, then it will come down to whether Florida's common law strikes the clause completely or whether it rewrites it to be enforceable. However, as with most cases, Sam and Oliva will likely reach an agreement and this won't ever make it to trial anyways.

TheRiddick 07-17-2011 09:16 AM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by LasciviousXXX (Post 1339527)
The biggest positive I can see for Mr. Leccia is that the non-compete covenant could be considered unenforceable if the duration is ruled to be unreasonable or overly broad. And let's face it, 5 years as well as restrictions on a national level could be deemed an unreasonable restriction on Mr. Leccia's ability to earn a living. Logically, I could see the judge scraping the non-compete clause in this case.

Non-compete is ALWAYS signed by BOTH parties. Since Leccia had no beef with the duration of the clause when he WILLINGLY signed it I can't imagine a judge now vacating it. If he signed the agreement in bad faith, as now it seems, then he should not be complaining. Besides, if there is a 5 year non-compete he DEFINITELY got a serious chunk of money up front, thus his ability "to make a living" is a dubious claim. Look up sales of Williams-Selyem and Kosta Brown wineries, just a couple of very visible examples, much longer non-compete clauses (10 years) and all enforceable without sellers claiming "duress".

loki 07-17-2011 09:25 AM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by Don Fernando (Post 1339438)
no

maybe?

chippewastud79 07-17-2011 09:29 AM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by loki (Post 1339557)
maybe?

No.

LasciviousXXX 07-17-2011 09:30 AM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by TheRiddick
Non-compete is ALWAYS signed by BOTH parties. Since Leccia had no beef with the duration of the clause when he WILLINGLY signed it I can't imagine a judge now vacating it. If he signed the agreement in bad faith, as now it seems, then he should not be complaining. Besides, if there is a 5 year non-compete he DEFINITELY got a serious chunk of money up front, thus his ability "to make a living" is a dubious claim. Look up sales of Williams-Selyem and Kosta Brown wineries, just a couple of very visible examples, much longer non-compete clauses (10 years) and all enforceable without sellers claiming "duress".


There are many cases of non-compete covenants being deemed unenforceable because of the unreasonable duration even though both parties signed the agreement. Most revolve around the issue of whether it unreasonably restricts the persons ability to make living. Many factors obviously come into focus on these types of cases, such as the range and scope of the restrictions, the type of work itself and whether a new venture would have a negative effect on the company if trade secrets were utilized. This is just to name a few. Not every NCC or CNC is open and shut simply for the fact that both parties signed the agreement. And seeing as how each one is different, the duration also doesn't definitely mean Leccia got a "chunk of money" up front. :2

loki 07-17-2011 09:39 AM

Re: Sam Leccia's Debut on hold
 
Quote:

Originally Posted by chippewastud79 (Post 1339564)
No.

definitely, i've been reading more than a few "i'll never buy another oliva cigar ever" posts. now is that internet dick swinging, maybe, but i'm sure that more than a few actually mean it. before this oliva was just another small cigar maker now, to some, they're the big bad corporation trying to stop a man from earning a living. There will be blowback from this and it's silly to think there won't be

Sherlockholms 07-17-2011 09:48 AM

Re: Sam Leccia's Debut on hold
 
Crazy stuff! I am curious as to how this is going to play out.


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