Nordstrom Defeats Vendor Contract Claim Over North Korean Labor

Nordstrom Inc. acted within its rights when it canceled purchase orders to apparel manufacturer Smart Apparel after learning that the federal government implicated its parent company in incorporating North Korean labor in its production process.

Smart Apparel asserted a breach of contract claim alleging Nordstrom didn’t have reason to believe that it had violated the terms and conditions of its agreement with the fashion retailer. But, Magistrate Judge Theresa L. Fricke, of the US District Court for the Western District of Washington, said Nordstrom “had four sufficient bases to refuse delivery of the merchandise” after US Customs and Border ...