Castrol Faces Arbitration from Its Mexican Distributor LUBREK, has Breached Temporary Restraining Orders from a Judge in Mexico who Warns of Possible Criminal ActivityBy Lubrek, PRNE
Sunday, June 19, 2011
MONTERREY, Mexico, June 20, 2011 -
Castrol Mexico faces arbitration from LUBREK, its distributor in
On February 23, 2011, LUBREK obtained from a Mexican Judge
sitting in Monterrey, Nuevo Leon, Temporary Restraining Orders to
ensure the status quo of the relationship while initiating
the corresponding arbitration.
These Orders included among others a formal prohibition for
Castrol Mexico to sell, distribute or market, through their own
means or through a third party, any of the Castrol Products to any
of LUBREK’s clients.
After reviewing the evidence filed by LUBREK, the Judge
concluded in a resolution issued on March 18th, 2011: i) that
Castrol Mexico had breached the Court Orders dictated on the 23rd
of February, 2011, and ii) that in case of infringing the Court
Orders again the responsible person could be subject to arrest,
fine or indictment for disobeying the court order. The Court also,
as a means of assuring compliance with its orders, requested the
District Attorney to proceed with the correspondent investigations
considering that Castrol Mexico’s actions have indicated the
possible existence of criminal conduct.
Some of the abuses claimed by LUBREK and found by the Court
include: a) that Castrol Mexico, contrary to what was
ordered by the Judge, designated a new distributor in the zone,
b) that Castrol Mexico, contrary to what was ordered by the
Judge, proceeded to make sales to LUBREK clients through a third
party, and c) that Castrol Mexico, contrary to what was
ordered by the Judge, did not comply in maintaining the “status
quo” of the Distribution Agreement and therefore complying with its
obligations there under.