On June 1st, a New York court ruled to reinstate Todd Oldham’s breach-of-contract suit against Old Navy. Oldman first filed the lawsuit a few years back, after the retailer terminated his position as design creative director and dropped a licensing deal for a Todd Oldham signature collection. A judge dismissed his case in January 2010, however, on the grounds that Oldham’s company, L-7 Designs, Inc., was making “extraordinarily high demands,” including “$75 million in compensation for lost royalties and reputational damages.” Oldham dropped his requested amount to $20 million and appealed the case, which apparently worked.

The Post reports: In a unanimous ruling, the U.S. Second Circuit Court of Appeals said Old Navy “made no argument, and pointed to no evidence” challenging the designer’s claim that he was “repeatedly and widely praised” by management during his one year-plus tenure with the company.

The three-judge panel also said Old Navy failed to negotiate in good faith after citing “economic conditions” as the reason it couldn’t keep its promise to launch a “Todd Oldham branded line of apparel” in 2008. Oldham’s office sent out a gleeful press release about the ruling yesterday evening; unsurprisingly, Old Navy and Gap, Inc., have not made any public comments.