Designer sues old company

The founder and namesake of Paul Frank Industries is suing that company, exposing an internal riff in the fashion line and providing new details about his high-profile departure.

According to documents filed Wednesday in Orange County Superior Court, Paul Frank Sunich’s exit was a particularly sordid affair with co-owners Ryan Heuser and John Oswald forcing him out of the company.

From 1997 to recently, the three were co-owners of Paul Frank Industries, a Costa Mesa clothing line popularized by its Julius logo, a monkey cartoon character.

Frank alleges the pair attempted to take the company over without paying him his share, and have tried to block him from launching future endeavors under his name.

The information paints a vastly different picture of Sunich’s exit from what company officials originally portrayed.

In November, the company first announced Sunich’s departure, characterizing his exit as a move initiated by Sunich to “pursue other interests.”

“That’s a complete fabrication,” said Sunich’s attorney Howard King of Los Angeles. “He didn’t leave ? he was booted out.”

Sunich’s lawsuit alleges that Heuser and Oswald, who along with Sunich each own a 30% share in the company, terminated Sunich from the company and tried to force him to sell back his stake for a fraction of its value. Sunich said he is also being blocked from creating a new line of clothing under his name.

“He has lots of ideas that he would like to incorporate into a new company, but they [Heuser and Oswald] are taking the position that he doesn’t have a right to compete with them.”

Company officials released the following statement:

“Our attorneys have not yet received or reviewed the complaint, so we don’t know much at this point. Other than that, we have no comments at this time.”

Paul Frank Industries began in 1995 after Sunich put the company’s iconic monkey onto a purse he had made for his girlfriend. A former Orange Coast College student and a Huntington Beach resident, Sunich would later team up with Heuser and Oswald to develop the Paul Frank brand, turning the fashion company into a $40-million-a-year powerhouse with 14 stores, including one in South Coast Plaza.

The company continues to post strong sales but is seeing its market share diminish with more specialty high-end brands, said Billy Stade, owner of the Closet retail store, which carries the Paul Frank line.

As for how the lawsuit will affect the brand’s image, Stade said he was doubtful most consumers would react.

“I don’t think it will affect the consumer,” he said. “It’s basically kids who are aloof to what happens in adult land.”