NEW YORK — A U.S. magistrate judge has recommended that a Manhattan diamond district jeweler be ordered to pay Cartier more than $94,000 in damages for selling watches that infringed on Cartier designs.
In a report and recommendation to the presiding judge in the case filed in Manhattan federal court on Wednesday, Judge Douglas Eaton determined that Sardell Jewelry and its founder and president, Eli Sardar, should pay Cartier $94,217.28 for selling potentially hundreds of infringing watches. District court judges, who have lifetime appointments, often refer cases to a magistrate judge in order to take on more cases. The magistrate judge can preside over a trial, but does not have the authority to make the final judgment.
Sardar’s legal representative did not respond to a call for comment.
According to court documents, Sardar purchased nearly 600 watches from Italian wholesaler Gold Enterprise to sell in his store between June 2002 and July 2003. Based on case testimony, Judge Eaton estimated it was likely that more than 200 of those watches infringed on Cartier designs and sold for about $1,000 apiece.
In Sardar’s testimony during the case, he said he wasn’t aware Cartier sold watches and that he had disregarded the first of three cease-and-desist letters sent by Cartier’s legal team. Eaton said he found the testimony to be “incredible” given that Cartier’s Fifth Avenue flagship was only five blocks from Sardell Jewelry and near Sardell’s bank.
Sardell Jewelry generated estimated gross sales of $15 million in 2002 and 2003. However, Sardar said there was no documentation available to determine profits gained from sales of the infringing watches. The judge therefore recommended awarding Cartier damages that equaled the cost of the 61 returned watches and the profits gained from the sale of 212 watches.
Sardell Jewelry and Eli Sardar were two of several diamond district jewelers named in a lawsuit Cartier filed in March 2004 that alleged the sale of look-alikes. The initial complaint was filed against Samo’s Sons, Freddie Samuel, Gabriel Efraim Jewelry, Gabriel Musheyev, L&M Jewelry Creations Inc., David Rappaport, Awad II, Italiano Gold Mounting, Sardell Jewelry and John Does. All named defendants with the exception of Sardell and Sardar had settled with Cartier by April 2005.