MONTERREY, Mexico, June 20, 2011 /PRNewswire/ --
Castrol Mexico faces arbitration from LUBREK, its distributor in northern Mexico.
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.