Instagram/allthatglittersonthegram
- Hayley Paige Gutman announced her resignation from JLM Couture in December 2020.
- Gutman resigned after JLM sued Gutman over her use of the @misshayleypaige social-media accounts.
- JLM was granted a preliminary injunction against Gutman, who countersued the company and its CEO.
@allthatglittersonthegram/Instagram
After months of issues, JLM — which owns Hayley Paige brands — sued Gutman over her personal use of company social-media accounts in December 2020 and was granted a temporary restraining order against her.
In response, Gutman announced her resignation from the company in an Instagram video, claiming that JLM locked her out of the @misshayleypaige social-media accounts and barred her from using her own name in a business context.
Insider created a timeline to explain how the problems between Gutman and JLM led to the lawsuit and her resignation, as well as what's happened in the months since she parted ways with the company.
Slaven Vlasic / Stringer / Getty Images
Hayley Paige — whose full name is Hayley Paige Gutman — began her journey to becoming a household bridal designer in 2011, when she signed an employment contract with JLM Couture.
Gutman's agreement with JLM granted the company "the exclusive world-wide right and license to use her name 'Hayley', 'Paige', 'Hayley Paige Gutman', 'Hayley Gutman', 'Hayley Paige', or any derivative thereof [...] in connection with the design, manufacture, marketing and/or sale of bridal clothing, bridal accessories, and related bridal and wedding items," according to a December 2020 complaint filed by the company's attorneys and reviewed by Insider.
Gutman said in a recent Instagram video that she was 25 when she signed the agreement and did not have a lawyer review the contract.
@misshayleypaige/Instagram
According to the "About" page for the @misshayleypaige Instagram, the account was created on April 6, 2012. (Two years later, in 2014, a Pinterest with the @misshayleypaige handle was also created, according to JLM's complaint.)
Gutman said she created the Instagram account in a press release provided to Insider and a video posted to a separate Instagram account. In a press release provided to Insider, however, a JLM representative said the account was intended to be a professional account "to promote the Hayley Paige bridal collections."
"It always was, and currently is, owned by the company – just as every company owns and controls its own brands and branded social media accounts," the press release said.
Gutman, however, maintains that her social-media accounts were never part of her 2011 agreement with JLM, with a spokesperson for the designer telling Insider "the Instagram account was started as a personal account" and that "a substantial amount of the content in this account has always been personal in nature."
"This and the other social media accounts in question have never been subject to JLM's control," the same representative said. "Indeed, what JLM has not told you is that my client's employment agreement with them gives them absolutely no rights to the subject Instagram account. In fact, the agreement made no mention at all of social media at all."
But JLM believes social media does fall under Gutman's contractual obligations, with a company rep telling Insider in a statement: "JLM does not agree with Hayley's opinion concerning her obligations and responsibilities or JLM's rights under the relevant employment agreement."
"Say Yes To The Dress"/TLC
Gutman's popularity grew rapidly over the years since her account was first created, in part due to her exposure on TLC's "Say Yes To The Dress" and the spin-off "Say Yes to America" from 2015 to 2019.
In the complaint, JLM claims it was responsible for Gutman's growing fame, as Murphy arranged for Gutman to appear on the show because of "his connection at Kleinfeld Bridal, one of JLM's biggest customers and the location where 'Say Yes To The Dress' is taped."
@misshayleypaige/TikTok
Gutman joined TikTok — using the @misshayleypaige handle — on November 2, 2019, according to JLM's complaint.
The designer used the platform to post personal videos alongside bridal content. A screenshot of the page's most recent posts show videos of Gutman's dog, her fiancé, and Hayley Paige gowns.
JLM alleged that the mixed style of posts "did not properly represent the HP brands" in the December 2020 complaint its attorneys filed against Gutman, adding that people who follow Hayley Paige-branded social-media accounts "do so because they want to follow JLM's Hayley Paige Brand designer wedding gown collection."
Brent N. Clarke/Getty Images
"Joe Murphy advised Gutman that she should post JLM approved content on the Tik Tok account, rather than posting personal images," JLM's complaint against Gutman said.
The company's complaint said that rather than complying, Gutman retaliated, changing the password to the @misshayleypaige account to prevent JLM from accessing it.
At the same time, Gutman and JLM entered into discussions about a new contract, with use of the name "Hayley Paige" at the center of many of the negotiations, according to JLM's complaint.
JLM "believed that Gutman's decision to take over the Main IG Account [@misshayleypaige] was a negotiation tactic to obtain leverage" as she renegotiated her contract with the company, the complaint said.
Instagram/allthatglittersonthegram
Gutman changed the bio of the @misshayleypaige Instagram account to read "Personal & Creative account" and "removed reference to JLM" at the end of 2019, according to the complaint.
The complaint alleges that the bio changes marked Gutman's attempt to "assert control over JLM's property," which led her to post more non-bridal related content to the Instagram account.
Dia Dipasupil / Staff / Getty Images
When Gutman and Murphy discussed her use of the social-media page, she told him that "it was her position that the Main IG Account was her personal account," the complaint said.
"Gutman's position regarding the ownership of the Main IG Account was not only new, but Gutman at all times previously mentioned [she] understood that the Main IG account was JLM's properly [sic] and acted accordingly," the complaint went on to say.
Gutman denied these allegations in both a statement to Insider and her recent Instagram video, asserting that the account has always been hers, pointing to personal announcements she made on the page, such as that of her engagement.
Hayley Paige Gutman/JLM Couture/Instagram
In the summer of 2020, Gutman was not only sharing personal posts to the page but also posts dedicated to products that were not sold by JLM, according to the company's complaint.
The posts advertised "the goods of third parties, such as olive oil, beer and nutritional supplements, none of which were approved by JLM," the complaint said. In October 2020, Gutman posted a giveaway for the avocado oil brand Chosen Foods on the @misshayleypaige account (pictured above).
The complaint alleges that Gutman was "paid for these endorsements, and therefore has profited off the substantial investment made by JLM at JLM's expense." The complaint said JLM spent millions of advertising dollars on expanding the Hayley Paige-branded social-media accounts.
Dia Dipasupil / Staff / Getty Images
According to the complaint, Murphy and Gutman met in October 2020 at Kleinfeld Bridal to discuss her use of the @misshayleypaige Instagram account.
During the meeting, the complaint said Murphy expressed to Gutman that it was "her duty to the company to include links to the JLM website," and Gutman re-added links to both JLM and Hearts on Fire, another JLM brand, to the bio of the page the following day.
Duffy-Marie Arnoult / Stringer / Getty Images
On November 3, Murphy informed Gutman on behalf of JLM that it would not give her ownership rights to the @misshayleypaige Instagram account after they reached a new agreement, according to the complaint.
Cindy Ord / Stringer / Getty Images
JLM's complaint alleges that "in a fit of anger" after hearing that the company wouldn't give her ownership of the Instagram account, Gutman removed both links to JLM and Hearts on Fire from the @misshayleypaige page.
She also deleted "hundreds of bridal related posts in a further act of exercising dominion and control over JLM's property," according to the complaint.
"Gutman not only hijacked the Main IG Account, but she took steps to convert it from a JLM company account to a personal account," the complaint said.
Anna Webber / Stringer / Getty Images
When the company again requested that Gutman post JLM-related content to the @misshayleypaige Instagram account, the designer insisted the page belonged to her rather than the brand, according to the complaint.
According to JLM's complaint, Gutman deleted more company-related posts from the page in November in addition to posting new personal content. The complaint said she would not give the company access to her Pinterest and TikTok accounts with the same handle as well.
"Say Yes To The Dress"/TLC
The issues between Gutman and JLM came to a head in December 2020, with JLM suing the designer over her use of the @misshayleypaige Instagram account "as her own business platform as if she were an influencer," the company's complaint said.
"After Hayley stopped posting JLM content and deprived the company access to the account, we brought the matter before the court," JLM wrote in a statement provided to Page Six at the time. "After carefully listening to both sides, a judge granted us the Temporary Restraining Order (TRO)."
The order prevents Gutman from posting on the @misshayleypaige accounts without approval from JLM, and she was forced to turn over passwords for the Instagram, Pinterest, and TikTok page, according to a statement JLM provided to Insider on December 27.
"We respect the judge's decision that JLM should have temporary control over the company site and feel the process was fair and equitable," JLM's statement added.
Hayley Paige Gutman/Instagram
On December 21, Gutman announced her resignation from JLM to her followers in a video posted on her Instagram account @allthatglittersonthegram, which isn't associated with JLM.
"It is with a heavy heart that I have resigned from my role as head designer of my labels with JLM Couture," Gutman wrote in the caption. "Going forward, I will no longer be associated with any of their products, including the designs and dresses which bear my name."
Making their legal dispute public, Gutman said in her video that JLM convinced a court to ban her temporarily from using her own name publicly and in a business context, and that the company was also given sole control of her main social-media accounts.
Gutman said in the video and in an accompanying press release that she has long viewed the @misshayleypaige Instagram account as a personal platform.
"I have used this account to talk about my life, family, fiancé, and my beloved dogs, among many other personal topics," she said in her press release. "And now, JLM is denying me the ability to communicate with the many friends who have joined me on our shared journey, unless I get Mr. Murphy's permission first, to make sure it is, in his words, 'on brand.'"
"And frankly, I feel violated by the idea that JLM may use my name to give you the impression that I continue to be associated with the company, even after I have left, while, at present, JLM asserts that I cannot use my own name myself," Gutman went on to say in the press release.
In the video — which has over 2.4 million views at the time of writing — Gutman urged her fans to follow her on @allthatglittersonthegram rather than the @misshayleypaige account.
Hayley Paige Gutman/Instagram
After Gutman's announcement went viral, JLM released a press statement addressing the designer's claims on December 22.
The press release challenged Gutman's claims that she owned the @misshayleypaige Instagram account and denied that Gutman could not post anything on the page. A JLM representative told Insider at the time that Gutman was not barred "from accessing the brand's social media accounts."
Days later, however, a representative for Gutman told Insider on December 27 that "the temporary court order currently requires the written approval of CEO Joseph Murphy, not the brand, which speaks to the level of personal control he demands."
"She is no longer an employee of JLM and has no interest whatsoever in posting their brand messaging to her account," the representative added, speaking of Gutman. "My client is confident that her Instagram and other personal social media accounts will be returned to her and justice will be done."
JLM's press release said the company was also open to Gutman having greater control over her own name in a recent discussion. "During one negotiation, Hayley and her lawyer discussed the ramifications of having JLM own the Hayley Paige name and requested to be compensated for it," the press release said. "JLM agreed to the request and increased Hayley's compensation."
Cindy Ord / Stringer / Getty Images
As Insider previously reported, JLM addressed the backlash it was receiving after Gutman published her video in an Instagram post.
The statement was first posted to the @misshayleypaige account, but it was then promptly deleted and reposted to the JLM corporate account — a mix-up that was down to "human error," a representative for the company told Insider.
"Like many things that glitter and shine, the issues between JLM Couture and Hayley Paige Gutman are multifaceted," JLM's statement says.
"While we were shocked and heartbroken to see Hayley's video, we feel that the correct negotiations she referred to are a private matter between those parties – in this case between Hayley and Joe," the statement continued, referring to JLM's CEO Joe Murphy. "But in light of some of Hayley's comments in the video, we feel compelled to address a few points."
"First, it is documented that Hayley had a lawyer help her review her employment contracts. She consulted with her lawyer prior to signing the contracts," the statement reads. "There were multiple rounds of negotiations between Hayley and JLM until both parties settled on an agreement each felt was fair and mutually beneficial."
"Second, Hayley has access to the social media accounts and JLM encourages and would welcome Hayley to continue contributing content that is supportive of the Hayley Paige brands," it says.
The statement adds: "Third, we respectfully ask that you allow Hayley, Joe and their attorneys to discuss the details of negotiations privately."
Dia Dipasupil / Staff / Getty Images
Following her resignation, Gutman received support from fellow designers, bridal boutiques, and brides who had worn her gowns. She posted a photo of herself with her dog on the @allthatglittersonthegram page on Christmas Eve to thank those supporting her.
"I know there is a lot more road ahead, and frankly being this exposed is still a wee bit terrifying, but I'm going to hold onto the love I've received with all my might," Gutman wrote. "I know that choosing to share my situation publicly comes with an enormous responsibility to avoid residual damage to people that don't deserve it. My main intention was to not let personal moments or connections be compromised."
Jamie McCarthy / Staff / Getty Images
A JLM spokesperson told Insider that Gutman changed the login information on the @misshayleypaige Instagram account after the court order which required her to hand over the account to the company.
"Hayley again hijacked the account by changing once again the login and password and refused to share those with JLM, an apparent violation of the court order," the spokesperson told Insider at the time.
"It wasn't until lawyers for JLM told her that they would notify the judge of the violation if she didn't hand over the info in 20 minutes that Hayley handed over the info and JLM once again got access to its own account," the representative added.
Gutman has denied these allegations.
"This is completely false, and meritless," a spokesperson for Gutman told Insider on December 28. "It did not happen, and we told them that when they asked."
"We stood by to assist them when they lost access to this account for reasons unrelated to us," the spokesperson said. "We are disappointed that they continue to advance this false narrative."
Hayley Paige Gutman/Instagram
On December 28, JLM Couture provided Insider with an email that appeared to refute Gutman's claim that she didn't have a lawyer review her initial employment agreement with the fashion company in 2011. But the designer told Insider she signed the agreement without an attorney looking at it.
The first email from an unnamed person at JLM (the person's name and part of their email address is redacted) reads: "Attached is a signed contract. Hayley please confirm you have reviewed this with your attorney." Insider was unable to review the document that appears to be attached to the email; the contract is currently sealed by court order.
Gutman — whose email address is redacted — appeared to respond: "Thank you for sending! I have reviewed with my attorney accordingly."
JLM's representative told Insider that Gutman is "misleading the public and her fans when she falsely claimed that she had no lawyer when she negotiated her first contract. Indeed, JLM insisted she have a lawyer and she did have a lawyer for her first – and every – contract negotiation."
But Gutman told Insider the email was sent after she had already signed the contract. "Despite what JLM claims, I did not have an attorney when I signed my first agreement with them in 2011," she told Insider.
"JLM cannot and has not produced one email, one agreement draft, or one phone record with the attorney they claimed I have," Gutman said. "Instead, they rely on an email they sent after I had already signed the contract, checking to make sure that my non-existent lawyer had reviewed it, in my opinion because they realized the inequities it contained."
A source close to Gutman told Insider that although the designer wrote in her email that she had a lawyer look at the contract that wasn't actually the case.
"She told JLM a lawyer had reviewed the final contract because, at age 25 in 2011, she had never negotiated a contract before, the contract had already been signed anyways, and she was very excited to get started with JLM," the source said. "So she confirmed what they clearly wanted her to say."
JLM declined to respond to Gutman's claims regarding the contract.
Hayley Paige Gutman/Instagram
In an Instagram video posted on Wednesday, Gutman said she requested through her lawyers that JLM "pause the litigation and start a conversation about a graceful end" to their professional relationship, as well as drop the temporary restraining order against her for 60 days. Gutman also requested that she be given back the rights to her name, as well as sole control of the @misshayleypaige social-media accounts.
On Thursday, Gutman's representative told Insider that JLM refused to resume negotiations "and set multiple untenable preconditions before even returning to negotiations."
"Their response indicates their decision to ignore the will of their bridal salon customers and their ultimate clients," the same representative said. "We are confident justice will prevail."
In response, JLM's representative told Insider that it is "blatantly untrue" that the company declined Gutman's offer.
"We have repeatedly reached out to Hayley's legal team and, without preconditions, told them we want to talk," they said. "JLM remains committed to resolving the differences between the parties, but to do that Hayley and her team will need to engage in conversations with us. We hope that Hayley's public statements of wanting to negotiate are sincere, and if they are we look forward to having those conversations."
@allthatglittersonthegram/Instagram
In the filing, which Insider was able to review, Gutman asserts that the @misshayleypaige account was always her personal account, providing years-worth of screenshots as evidence.
In her own declaration that was filed with the response, Gutman stated that she started two social media accounts — a Facebook page in 2004 and a Twitter account in 2009 — with the @misshayleypaige handle before she started working with JLM. She also pointed out that her first six Instagram posts were personal in nature.
The response notes that the @misshayleypaige account was verified as a "public figure" account in 2017, making it an account for a person rather than a company, though the page has since been changed to be verified as a "clothing brand."
The filing goes on to provide declarations from JLM employees who viewed the account as Gutman's personal page, as well as emails from employees that refer to the @misshayleypaige account as Gutman's page. The documents also include an excerpt of an email from Murphy regarding his view of the company's ownership of the Hayley Paige name.
"As far as [your] personal investment (regarding JLM) it really is only related to Hayley Paige wedding gowns and related categories," Murphy wrote to Gutman via email in 2019. "Rest assured, I do not claim access to your persona beyond what I describe above."
In addition, the motion claims that the followers of the @misshayleypaige Instagram account noticed when JLM took over posting to the page for Gutman and commented messages supporting Gutman, indicating the page is not the same without her personal voice. The comments on the @misshayleypaige account have since been disabled.
In a statement provided to Insider, Gutman said, "I have always taken my contractual obligations seriously, and lived up to every one of them, but for JLM that was not enough."
"Today's response is my first opportunity to describe to the Court the misrepresentations and false claims that JLM Couture made in their emergency filing," she added. "I believe that upon review of all of the facts, justice will be done."
Gutman shared the news of the response with her followers in an Instagram video on Tuesday, and she even added a link to the lawsuit to the bio of the @allthatglittersonthegram Instagram page, allowing her followers to look at the document.
"I want you to take this journey along with me, and I have always valued transparency," she said of why she added the link.
Mireya Acierto / Contributor / Getty Images
JLM filed papers directly refuting the claims Gutman made against the company in her response to the lawsuit.
The memorandum doubles down on JLM's stance that Gutman was never the owner of the @misshayleypaige social-media accounts, arguing that her assessment that the existence of personal posts on the main Instagram account does not indicate that she owned the page.
Gutman submitted 300 photos in her filing to demonstrate the @misshayleypaige account was personal in nature, but the JLM team noted that the account currently has 5,879 posts on it, which means 95% of the posts were business-related.
Likewise, the memorandum points to instances in which Gutman got approval from JLM or Murphy for what language she should use in non-bridal-related posts, including a post she made about her divorce, which JLM cites as evidence that Gutman thought the page was owned by the company.
In addition, the memorandum addressed the emails Gutman included in her briefing from JLM employees who referred to the @misshayleypaige Instagram as her account, writing that those employees were not "in positions where they were privy to the details regarding JLM's contractual arrangements with, assignment of duties to or acquisition of rights from Gutman."
The memorandum also notes that Gutman's "false and misleading smear campaign against JLM" (i.e. her recent social-media posts regarding the lawsuit) is harming the Hayley Paige business, as stores have stopped working with JLM since Gutman went public about the lawsuit.
Gutman's employment contract with JLM is valid through August 2022, and it includes a non-compete clause that's valid for five years after her employment ends. In the memorandum, JLM argues her social-media activity in recent weeks breaches that clause, since it has led bridal stores to stop working with the brand.
When Insider reached out to Gutman's team for comment on the memorandum, a spokesperson refuted JLM's statements.
"JLM's latest claims, like their earlier ones, are full of assertions that are unsupported by the facts of the case," the spokesperson said. "They fail to address the evidence we presented to the Court, and we are looking forward to being heard."
The hearing took place on February 4.
D Dipasupil / Contributor / Getty Images
After a month of deliberation, a judge ruled in JLM's favor, as stated in a JLM press release.
"Judge Swain found that JLM demonstrated a clear likelihood of success in proving Hayley Paige Gutman breached her employment contract and infringed the company's trademark," the press release stated.
The ruling prevents Gutman from using any @misshayleypaige social-media accounts or Hayley Paige trademarks.
"Mr. Murphy continues to recognize and value Ms. Gutman's talent and remains hopeful that JLM and Ms. Gutman can reconcile their differences," the press release stated.
Since the ruling was a preliminary injunction, there will be an additional hearing at a later date to further examine the legal issues between JLM and Gutman.
"I'm disappointed in JLM's actions but determined to look to the future rather than the past," Gutman told Insider in a statement regarding the ruling.
"They have taken my name, and my social media for now, but JLM's business is built on the goodwill of amazing women, and I believe they will be accountable to these women for what they have done," she added.
Instagram/allthatglittersonthegram
In response to the lawsuit, Gutman decided to change her name so she can continue to do business unassociated with JLM, as she announced on the @allthatglittersonthegram Instagram account.
"I may have lost this round in court, but the bigger story is about a 'girl you might know,' who is determined to pave her own future," Gutman said in the video. "I refuse to be nameless, and I refuse to be jobless. Since they have taken my name, I've decided to change it, officially and professionally."
"I will not be reduced by what has been taken from me," she added.
Gutman hasn't picked her new professional name yet, and she asked her followers to help her choose a moniker in the video. She requested they choose a name that had zero association with her birth name.
"It has to be brand new," Gutman said. "It can't be based off my birth name or anything I've done with JLM. They are a part of my past, and this is my future."
JLM declined to comment on Gutman's decision to change her name.
JLM Couture
JLM Couture took to Instagram again on Tuesday to make a general statement that addressed both the court ruling and Gutman's most recent video.
"Intellectual property is the cornerstone of every modern business, especially in the fashion industry," the statement read. "JLM takes these rights very seriously, which is why Ms. Gutman's employment agreement clearly and unambiguously set out Ms. Gutman's obligations, what rights were being acquired and what restrictions would be imposed on Ms. Gutman, all of which she freely and knowingly agreed to."
"While JLM will never deny Ms. Gutman's talent, JLM rejects Ms. Gutman's accusations as well as her version of business ethics," the statement went on to say. "Ms. Gutman testified in court that she does not believe that a material omission is a form of a lie. JLM does not subscribe to that version of 'business ethics' or how she is trying to mislead the public about the facts or the case or her own motivations."
"In her public statements Ms. Gutman omits the overwhelming evidence submitted to the court that these social media accounts were an integral part of the Hayley Paige brand business and marketing strategy, and were run as such, including admissions to that effect in her own emails," the statement also said.
The statement went on to say that Gutman hadn't told her followers that she had "secretly licensed" her name to her fiancé so she could do business through him and allegedly avoid the terms of her contract. The statement also noted that Gutman used the @misshayleypaige accounts to promote Chosen Foods and Optimum, which violated her contract with JLM.
"JLM does not subscribe to her version of business ethics where consumers and followers are misled and not given the facts," the statement said. "When the court considered all of the actual evidence and facts in the case, it rejected her arguments."
"JLM strongly encourages anyone interested in this case to read the court's entire decision and reach their own conclusions," it said, adding a link to the court decision to the bio of its Instagram.
Instagram/allthatglittersonthegram
Gutman told Insider via email that she is "making changes in my life and moving forward," when asked for comment on JLM's latest post. "That's why I am changing my name."
"JLM Couture is a company that relies entirely on women for its business, but it continues to treat women with utter disrespect," Gutman went on to say. "JLM took control of my social media and never informed the followers of these accounts that they are speaking with a corporation, not me."
"JLM has also turned off comments on both my social media channels and their own, which is both deceptive and disrespectful to the thousands of strong women who have shared their opinion about JLM's actions, only to find their words deleted and their ability to speak squelched," she added. "This is part of a disrespectful pattern of behavior that is the exact reason I started working towards a separation agreement last summer."
"Instead of working with me in good faith, they ignored my requests while they were secretly preparing this litigation to take from me by force what they could not get any other way," she said. "Based on the opinion of those who have communicated with me, and attempted to communicate with them, I believe they have made a terrible mistake."
"I have always believed that my social media accounts belonged to me," Gutman told Insider. "I started my Instagram account on my own accord and shared a deeply personal view into my life. I am disappointed by the court's temporary ruling, but confident that the ultimate outcome will be favorable."
"In the interim, I am moving forward with my life and my creative passions," she said. "Changing my name is the first step towards a new future, but it is certainly not the last. Stay tuned."
Eugene Gologursky / Contributor / Getty Images
On Monday, Gutman filed a counterclaim against JLM, denying many of the company's allegations against her, including that she misused the @misshayleypaige social-media accounts.
Insider was able to review the counterclaim, which contained new allegations against the company.
In the counterclaim, Gutman alleges that JLM withheld compensation from her in the form of both her base pay and additional compensation she says she was supposed to receive.
The claim says that JLM "willfully failed to pay and/or unlawfully deducted the Additional Compensation due to Hayley" over the last six years. The amount of money Gutman says was withheld from her was redacted in the copy of the counterclaim.
The counterclaim also says that JLM defamed Gutman in private and public following her departure from the company in December. For instance, the counterclaim argues that JLM's claim that Gutman changed the passwords on her social-media accounts following the Temporary Restraining Order isn't true and was an attempt to defame her.
Gutman is also suing the CEO of JLM Couture, Joe Murphy, in addition to the company, alleging that he created a hostile work environment for her, made sexually inappropriate comments, and "engaged in sexual harassment of other(s)."
Instagram/allthatglittersonthegram
The counterclaim says that "JLM forced Hayley to endure a workplace of fear, harassment, and inappropriate behavior" as a direct result of Murphy's leadership. JLM denied these allegations in a statement provided to Insider on Tuesday, calling the claims "fictitious."
Gutman alleges that women who had romantic relationships with Murphy were given preferential treatment, such as more flexible work hours.
The counterclaim says that Gutman knew of at least three romantic relationships Murphy had with women who were his subordinates, including a sexual relationship in which Murphy apparently fathered a child while he was married to someone else. While most employees were not named in the counterclaim, it mentioned one woman — who, according to the complaint, had a sexual relationship with Murphy — by name. The employee named in the counterclaim did not immediately respond to Insider's request for comment on this story.
In addition, the counterclaim says that Murphy would put down women who rejected him. For instance, Gutman alleges that Murphy made negative comments about a female JLM employee's boyfriend and critiqued her work to Gutman after the employee had denied his advances.
The counterclaim says Murphy told Gutman over text messages that the employee who rejected him "is put together differently psychologically and needs to be micromanaged" and that she "can't delegate [...] has no aptitude, cannot keep track of time nor multitask."
According to the counterclaim, Murphy's inappropriate behavior was well known throughout the company and often occurred in public.
For instance, Gutman alleges that "Murphy commented on an intern's blouse and said, 'I didn't know it was a wet T-shirt day' in front of other JLM employees" on one occasion.
Gutman also alleges that Murphy made sexist comments about motherhood to her, saying that employees who had children "were performing poorly because of their familial status."
Instagram/allthatglittersonthegram
The counterclaim went on to say that Murphy directly harassed Gutman, alleging that he made inappropriate comments about her body on multiple occasions. JLM also denied these claims in its statement to Insider, saying that Gutman "was always treated with the utmost respect" at the company.
The counterclaim says that Murphy compared Gutman to a JLM employee he was dating, invited her to his Florida beach house for a recreational trip, and made her feel physically unsafe at work.
"Murphy would often summon Hayley to a crammed secluded back office, use his physically imposing nature to block the door, and engage in inappropriate and invasive personal conversations into Hayley's romantic relationships, sex life, and family life," the counterclaim said.
In these meetings, according to the counterclaim, Murphy encouraged Gutman to discuss her relationship with her fiancé and then told her that her relationship was "really not good for" her as it distracted her from work.
The counterclaim says that Gutman was so uncomfortable in these meetings that she began "to hide a sharp object in her pants or dress to use to defend herself in case Murphy tried to physically touch her."
According to the counterclaim, Gutman experienced "hair loss, circulation issues, trouble sleeping, and sought therapy as a direct result of the work environment at JLM and interactions with Murphy."
Instagram/allthatglittersonthegram
"JLM Couture Inc. is appalled by the new false allegations made by Hayley Gutman in her March 22 court filing," the statement obtained by Insider read.
It continued: "Ms. Gutman only brought these fictitious claims now, after the court agreed with JLM and issued a significant Preliminary Injunction against her, to malign in the media the outstanding reputation of the company and Chief Executive Joe Murphy."
"Ms. Gutman continues to promote a false narrative regarding the terms of her employment contract, compensation, and trademark rights, including social media handles and how and where she can use the designer name," the statement went on to say.
"For years, Ms. Gutman was the highest-compensated employee of JLM Couture," the statement read. "JLM denies claims by Ms. Gutman regarding a hostile work environment or that Ms. Gutman was harassed or mistreated in any way. On the contrary, she was always treated with the utmost respect."
Instagram/@jlm_couture
The company made the announcement on the JLM Couture Instagram account.
"Happy Fri-YAY," the post read. "We are thrilled to announce that new Hayley Paige gowns are coming your way soon by our new lead designer, Francesca Pitera."
The company also shared a sneak peek at the new Hayley Paige capsule collection on its stories.
Comments were disabled on the post.
Slaven Vlasic / Stringer / Getty Images
JLM filed a new complaint against Gutman and her fiancé Conrad Louis Clevlen, who goes by Conrad Louis on social media, on May 3.
The lawsuit, which Insider was able to review, accuses the couple of copyright infringement, breach of contract, defamation, and more.
It alleges Clevlen helped Gutman breach her contract with JLM by facilitating the use of her name by companies like Optimum Nutrition, Inc. without JLM's consent.
In addition, the lawsuit alleges that Clevlen "allowed Gutman to receive payments through his contract" with Optimum in an attempt to do business behind JLM's back.
A JLM spokesperson provided Insider with a screenshot of an email in which Gutman told an Optimum staff member that she was "happy to have all payments go through Conrad's contract."
The latest lawsuit also accused Gutman of defamation, alleging that her Instagram videos about the legal issues between herself and JLM have impacted the company's business.
The lawsuit claims Gutman's videos have led at least 50 bridal stores to stop working with JLM and 35 stores to rescind orders from the company.
JLM asks for a trial by jury and damages from Gutman and Clevlen in the lawsuit.
It requests damages from Gutman and Clevlen on 18 counts, asking for at least $8.95 million in damages.
In a statement provided to Insider, a representative for Gutman told Insider she denies JLM's allegations and that her team will be filing a response "in due course."
"JLM has concocted a series of harassing and false claims about both Conrad and Hayley with the clear intention of shutting down their ability to express their opinions about JLM and the merits of their litigation," Gutman's representative said.
"I've always felt that JLM was focused on controlling me personally, and this latest lawsuit is further evidence of that, and another reason why I resigned… from a very hostile organization," Gutman said in a statement to Insider.
"It is disheartening to see them attempt to control what I can say, and even sadder to see them bring in my fiancé to try to further hurt our lives," she added.
Instagram/@allthatglittersonthegram
Although JLM is suing Gutman for defamation because of her Instagram videos, she posted an new video on May 4 — the anniversary of the day she met Conrad Louis – to announce JLM is suing him.
"Unfortunately, we woke up to news that JLM has now sued Conrad personally related to his using of my own birth name," Gutman said in the video. "Of all days for this to happen, I find it particularly personal and heartwrenching that they picked today, May the fourth, that is so meaningful to us both."
The lawsuit reviewed by Insider was dated May 3, 2021.
"I feel that JLM is targeting my fiancé now because they see him as an opportunity to further drag out this lawsuit and further drain us financially," Gutman said. "I believe this is a shameful affront to common decency and sets a terrible precedent for human beings on social media."
"But unfortunately, this is the kind of behavior that is completely consistent with the way I was treated while working at JLM," Gutman went on to say. "If there was ever a time you had any doubts about JLM's motivations in this lawsuit, I feel that dragging my fiancé into this is proof of their desire to escalate and exercise ill will against me, against my loved ones, against a community, or anyone that wants to support me."
Gutman also noted in the video that she has been withholding from posting videos regarding the lawsuit on @allthatglittersonthegram because JLM is suing her for defamation as a result of other videos she made regarding her legal issues with the company.
"JLM is now trying to charge me with defamation for my public videos, like the one you're watching right now," she told her followers. "This has been my only legal outlet to let people know what has happened, and I will not be scared into staying quiet."
"In fact, with every single attempt JLM makes to muzzle me or drag down my loved ones and supporters, it only ignites greater purpose and meaning in my life," Gutman added.
Gutman ended the video by saying her name and new brand are on their way, though she added that "there have been some pretty aggressive attempts to distract" her from launching a new bridal brand.
"I will not allow pettiness and injustice to outrun my dreams," she said.
Instagram/@allthatglittersonthegram
A JLM spokesperson rebuked a myriad of Gutman's claims to Insider on May 5, including her assertion that JLM is attempting to silence her.
"JLM is not trying to keep Ms. Gutman quiet – only to stop her from defaming the company," the spokesperson said.
As an example, the spokesperson specifically pointed Insider to a video from December 21 in which Gutman said JLM was "controlling, manipulative, and bullying" as an example of her defamatory statements.
In addition, the JLM spokesperson told Insider that significance of May 4 to the couple was a coincidence.
"The company filed its First Amended Complaint, on May 3, because that was the deadline to make such a filing as agreed to by Ms. Gutman's attorneys and ordered by the Court," the spokesperson told Insider. "JLM was not aware of the date that Ms. Gutman and Mr. Clevlen first met."
The same representative told Insider that JLM sued Clevlen after learning more about his involvement with Gutman's business endeavors.
"JLM Couture filed a First Amended Complaint naming Mr. Clevlen as a defendant because, since filing its original Complaint in December 2020, it has come to learn the specific role Mr. Clevlen has played in facilitating and profiting from side deals by improperly using JLM's exclusive trademarks," the spokesperson said. "JLM alleges that Mr. Clevlen used the @misshayleypaige trademarks, without the consent of JLM, to secure third-party side deals."
Instagram/@allthatglittersonthegram
Gutman filed a motion to request that a judge dissolve the preliminary injunction against her, which prevents her from using her name for business endeavors.
Her team argued that JLM breached its contract with her by not paying her salary, not paying her commission for 2020, or giving her health insurance after she resigned in December 2020.
The judge denied the request in a memorandum, which Insider was able to review, as Gutman did not provide evidence for her claims before the injunction was granted. The judge said she was essentially asking the court to relitigate the preliminary injunction, which goes against precedent in the Second Circuit where the case was heard.
In addition, the judge ruled that Gutman's "legal arguments also fail on their merits," as she did not provide ample evidence for her claims, according to the court documents.
For instance, JLM argued the Contract between the company and Gutman was conditional on her "full, prompt and faithful performance of all the duties and services" to the company, and Gutman did not properly refute that claim.
"Ms. Gutman did not refute in her reply, or at oral argument respond meaningfully to, JLM's assertion of the Contract's conditional nature, at least with respect to base compensation and benefits," the judge wrote. "Instead, in her reply submission, Ms. Gutman simply asserted in conclusory fashion that there is 'no question' that JLM's failure to pay her compensation and benefits is a material breach of the Contract."
Because the preliminary injunction was not dissolved, Gutman will be proceeding with an appeal of the ruling.
Slaven Vlasic / Stringer / Getty Images
Gutman took to Instagram again on June 7 to share an update with her followers on her legal proceedings with JLM.
In the video, she discussed the judge's denial to dissolve the preliminary injunction, and she also said that JLM argued that it did not owe Gutman her 2020 commission.
Gutman also said that the company claimed she was paid commission from 2017 to 2019 because of an "error."
"This is what I'm talking about when I say this industry deserves more from JLM. More authenticity, more transparency, and more accountability," Gutman said in the video. "I can't help but feel that all this time and money and effort that JLM has spent trying to tear me down over the last six months is so misguided."
"I am just disappointed in how they have handled this situation," Gutman went on to say.
A spokesperson for JLM rebutted Gutman's allegations.
"Ms. Gutman misrepresents the papers submitted by JLM and misconstrues the decisions of the Court," a spokesperson for JLM told Insider. "As anyone following this can see, Ms. Gutman has tried on three separate occasions to get the Court to agree to her position and on all three the Court has, using very strong language, agreed with JLM."
"Additionally, an appeal is a right granted to all litigants who lose," the spokesperson added.
Instagram/@allthatglittersonthegram
Although the judge did not dissolve the preliminary injunction, the order did clarify that Gutman will be able to launch a new business in the bridal industry in August 2022.
"The judge clarified in her order that I will be allowed to reenter the bridal industry and start designing again under a different brand name in August of 2022," Gutman told her followers. "It is such a relief to have a date to set my sights on."
Gutman exclusively told Insider that she hopes to explore products outside of the bridal industry with her new business.
"In addition to reentering the bridal space I was meant to be in, I absolutely am exploring new categories where I have received interest from my community," she told Insider. "I am excited that my reentry is so soon and that I have a year to develop brand new ideas. "
But even as she plans for her new venture, Gutman isn't giving up on being able to use "Hayley Paige" again someday.
"This is active litigation. The decisions made so far are preliminary, based only on the limited evidence that the Court has seen," she said. "There is still a long way left to go."
You can read more about Gutman's plans for her new line here.
Instagram/@allthatglittersonthegram
The letter stated Gutman was "fragrantly violating the Preliminary Injunction by engaging in the marketing of her newly announced competitive bridal brand" with both the video and her comments about her new brand to media outlets.
Indeed, Insider's coverage of Gutman's announcement was cited in the letter as evidence of Gutman's violation of the Injunction, as she gave Insider exclusive comments about the new brand and shared an Insider article about it to her @allthatglittersonthegram Instagram story.
The letter says Gutman's actions violated the Preliminary Injunction because "while the Court modified its order to clarify that Ms. Gutman was enjoined from the identified competitive actions '[u]ntil August 1, 2022' it did not give Ms. Gutman affirmative permission to design under a different name."
It continued to say that JLM's current contract with Gutman prevents her from from working or designing for brands that compete with JLM for five years.
That element of the contract has yet to be discussed in the legal proceedings between the company and Gutman, and Insider's previous coverage of Gutman's plans to create a new brand noted that the timing of her new launch is dependent on future litigation with JLM, not just the Preliminary Injunction.
The letter then listed seven demands of Gutman by June 21, including removing the video from June 7 from the @allthatglittersonthegram account and issuing a public retraction about the new brand both on Instagram and to Insider.
"To the extent these issues are not resolved immediately, JLM will be seeking relief from the Court, which will include equitable relief ordering the above as well as damages available, including but not limited to sanctions for Ms. Gutman's contempt," it read.
Gutman had not removed the video or issued a retraction to Insider at the time of writing.
Instagram/@allthatglittersonthegram
Gutman shared the letter in the form of screenshots.
"A few days ago, we received a letter from JLM's lawyers demanding that I take down the video I posted on June 7 and threatening to file a motion for contempt and sanctions against me," she captioned the post.
"Just so everyone is absolutely clear, the Court's preliminary injunction preventing me from working in bridal and competing with JLM, expires on August 1, 2022," Gutman went on. "Until then, I look forward to launching a new brand, under a new name, and in a new field outside of bridal or any other category that JLM is currently involved in."
"After the preliminary injunction expires, I hope to re-enter bridal with a splash 🧜🏼♀️ and under a new name," she added.
A spokesperson for JLM said the company "stands behind" its letter in a statement provided to Insider.
"JLM stands behind its positions in the letter sent to Ms. Gutman's counsel. The letter was a good faith attempt to resolve the issues to avoid having to make a motion for contempt, including asking that the videos be taken down and Ms. Gutman issue corrective statements on Instagram and with Insider.com," the spokesperson said.
"Ms. Gutman has refused, instead electing to further try to incite ill-will towards JLM Couture," they went on to say.
"JLM Couture will be seeking relief from the Court and will be filing a motion for contempt," the spokesperson said.
Instagram/@allthatglittersonthegram
JLM filed the motion and a Memorandum of Law to explain the motion, which Insider was able to review. The memo cites Gutman's social-media use and comments to the media, including Insider, as violations of the preliminary injunction issued against her, saying she is currently building a base of support for her new brand.
It states that "Gutman's clear and admitted intent is to use the time the non-compete is in effect to market and promote the brand, build her consumer base and design her collection, so that her dresses can go on sale with a built-in customer base the day her non-compete ends" in August of 2022.
JLM's memo says the @allthatglittersonthegram video in which Gutman announced she would be launching a new brand under a new name next year is a form of marketing.
The memo cited comments under the video from brides who said they planned to buy from Gutman's new line next year as evidence that her content violates the preliminary injunction.
The memo also cited an Insider article about the new line that featured exclusive comments from Gutman, as well as the fact that Gutman shared the story to Instagram with the "swipe up" feature, as evidence of the violation.
"This the exact type of competitive harm that the non-compete provision was intended to prevent," the motion reads.
Instagram/@allthatglittersonthegram
The memo also says sketches Gutman has shared on the @allthatglittersonthegram Instagram are violations of the preliminary injunction.
It states that JLM sells her sketches as part of the Hayley Paige brand and uses them for marketing purposes, so her posts violate the non-compete clause. It also says that a video she posted of herself drawing on June 21 included a sketch owned by JLM.
The memo went on to say that because Gutman did not remove the video about the new name, did not retract her statements to Insider, and continued to post videos of herself sketching to @allthatglittersonthegram, JLM filed the motion of contempt. The company requested the court hold Gutman in civil contempt and order financial and equitable sanctions against her for the violations in the motion.
JLM also wants the court to require Gutman to remove three posts from the @allthatglittersonthegram account and be "enjoined" from announcing her new name before the non-compete agreement expires.
Instagram/@allthatglittersonthegram
"I continue to believe that this is just another attempt to prevent me from talking with you about this litigation and prevent me from shining any kind of light on what JLM is doing," Gutman said in the video.
"At this point, seven grueling months into this dispute, I feel like nothing is enough for JLM," she said in the video. "I feel like they just want me to sit down and shut up."
Gutman also said in the video that JLM "is now messaging people on Instagram and saying they've tried to settle with me many times and that I refuse to engage in settlement." She went on to say that was false and that she remains "very open and willing to solve this dispute in a professional and business-oriented way," adding that she has made a settlement proposal while JLM has not.
"This is an ill-considered effort by JLM to try to control public conversation about their poor decisions," a representative for Gutman told Insider. "JLM continues to prohibit most public comment on the various social media channels they control, and has gone so far as to delete prior negative comments about their actions."
"In combination with this latest effort to use the courts to avoid public opinion, it's clear that JLM is suffering great harm from the litigation they started. They have no one but themselves to blame," the representative went on to say.
JLM reiterated the contents of the motion for contempt in a statement to Insider.
"JLM Couture Inc. was forced on July 15 to seek relief in Federal Court after Ms. Gutman's continuous flagrant violations of Judge Laura Taylor Swain's order," a spokesperson for JLM said. "Ms. Gutman was asked to stop violating Judge Swain's order and to take down the infringing videos and posts – but she refused. This left JLM Couture no choice but to seek immediate relief from the court."
"Ms. Gutman's video released this morning continues to promote a false and misleading narrative with reference to the contempt motion itself and the interactions between the parties," the spokesperson went on to say.
Gutman said JLM's latest actions don't "surprise" her in a statement to Insider.
"It does not surprise me that JLM continues to blame me instead of acknowledging the impact of its own actions; and that JLM continues to want to silence and restrain me instead of looking for ways to move forward in a professional, business-minded way," she said. "This contempt motion's vitriol speaks for itself."
Eugene Gologursky / Contributor / Getty Images
JLM's request to hold Gutman in contempt was partially granted.
As stated in a memorandum reviewed by Insider, the court found that Gutman was marketing her upcoming brand with her posts and comments to Insider. Because her future brand would directly compete with JLM, it was ruled that Gutman's posts and comments put her in willful, civil contempt of the preliminary injunction issued in March.
The court decided that Gutman is enjoined from "announcing a new brand name in the context of a present or future commercial venture involving" bridal wear, bridal accessories, evening wear, or any other products sold by JLM until the preliminary injunction expires in August of 2022.
According to the memorandum, Gutman will have to pay JLM's "reasonable attorneys' fees and costs" because she violated the terms of the preliminary injunction. The exact total had yet to be decided.
She will also have to delete Instagram posts from the @allthatglittersonthegram post related to her plans for a new brand from May 7, June 7, June 21, June 25, and July 15, 2021, within five days of the ruling, as stated in the memorandum.
Gutman will be fined $5,000 for each day she is not compliant with the ruling, as stated in the memorandum.
Instagram/@allthatglittersonthegram.
"My former employer, JLM Couture, sought and was granted a contempt order against me in Federal Court which requires that I delete several videos and posts that I have made here on Instagram by September 13, 2021," Gutman wrote in her post. "I want to apologize to those of you who poured your heart and time into comments on these videos and posts. I am grateful for your support, and your love, and I want you to know that I love everyone of you right back."
Gutman had not deleted every post required from the @allthatglittersonthegram account at the time of writing, though some of the posts appear to have been deleted.
Gutman said she was unable to comment on this matter when contacted by Insider.
In a press release shared with Insider on Thursday, a JLM spokesperson said: "JLM is pleased with the outcome of this decision, although it is unfortunate that it has come to this. The Court issued a clear PI based upon the rights and provisions that Ms. Gutman voluntarily, knowingly, and intelligently agreed to, which Ms. Gutman has flagrantly violated."
"JLM repeatedly tried to obtain Ms. Gutman's compliance before making this motion, but Ms. Gutman refused," the spokesperson went on to say. "It is JLM's hope that Ms. Gutman will respect her contractual obligations and the Court's Orders in the future."
Instagram/@allthatglittersonthegram
On December 14, Gutman marked the one-year anniversary of the start of her legal issues with JLM couture with an Instagram post.
"It has been one year since I was sued in a federal court by the employer I dedicated over 9 years of my life," the post read. "Instead of fearing or caving in, I stood up for myself."
Gutman then went on to catalog the legal entanglements that ensued between her and JLM over the past year, including her recent decision to appeal her case to the Second Circuit.
She also said in the post that her ongoing legal battle with JLM "drained me financially of all the money I ever made as a designer and most of my life savings, while continuing to profit from my designs and name."
Gutman finished the post by thanking her followers and asking them to share her message, signing the post as "A Girl You Might Know."
A complete timeline of bridal designer Hayley Paige's legal battle with JLM Couture
Source: Kalayaan News
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