Vendor Suit Against Nordstrom Over Labor Claim Revived by Court

Nordstrom Inc. must face contract breach allegations from a vendor it canceled orders from over forced labor concerns, a federal appeals court ruled Tuesday, reviving the lawsuit.

Smart Apparel Inc. adequately alleged breach of contract and breach of the implied covenant of good faith and fair dealing in its complaint against Nordstrom, the US Court of Appeals for the Ninth Circuit said in an unpublished memorandum disposition. The appeals court reversed the lower court’s dismissal of the suit for failure to state a claim and remanded for further proceedings.

• Nordstrom canceled purchase orders after learning that US Customs and ...