Arbitrator finds against Ziebart in sealant-price case
A two-year-old lawsuit filed against Troy-based Ziebart International Corp.
by franchisees is nearing an end following a decision by an arbitrator who concluded that Ziebart breached a contract by selling rustproofing sealant to franchisees above market value.
The decision, issued Oct. 28 after binding arbitration with former Chief Oakland County Circuit Judge Barry Howard, awarded 27 franchisees $1.44 million. The decision must must be converted into a final judgment in Wayne County Circuit Court.
Ziebart Corp. has about 225 North American franchises and company-owned stores and Ziebart’s parent company, Ziebart International, has about 200 franchises. Ziebart sells automotive accessories and offers rustproofing.
“While Ziebart doesn’t agree with all the findings of the arbitrator, we are very pleased to have the matter behind us and look forward to moving on,” said Frank Soccorsi, Ziebart’s vice president of franchised operations.
