Court of appeal upholds lower court ruling
Published Friday July 10th, 2009
Justice World-famous cymbal-making family member awarded about $750,000
The New Brunswick Court of Appeal has upheld a lower court ruling that awarded about $750,000 to the disgruntled member of a world-famous cymbal-making family.
Wilson (Bill) Zildjian filed a lawsuit against Meductic-based cymbal-making company Sabian Ltd., Sabian Inc. and his parents and his siblings last year.
As part of that lawsuit, Bill Zildjian claimed he was owed dividends as a shareholder of Sabian Ltd., which was founded by Robert Zildjian, Bill's father, in 1981.
In a December ruling, Court of Queen's Bench Justice Paulette Garnett ruled in Bill Zildjian's favour on a summary-judgment motion about the dividends.
That ruling awarded Bill Zildjian about $750,000, factoring in the determined value of the dividends plus interest.
The Zildjian family and the company appealed that ruling, and in a decision issued last week, a Court of Appeal tribunal also sided with Bill Zildjian.
The province's highest court dismissed the appeal and awarded Bill Zildjian additional costs of $5,000.
On the original motion, legal counsel for Sabian and the rest of the Zildjian family argued that Bill Zildjian wasn't owed dividends for his Class B shares in the company because he accepted cash gifts from his father Robert Zildjian instead.
David Young, Bill Zildjian's lawyer, said his client is pleased with the Court of Appeal's ruling.
He also confirmed that his client has been paid for the dividends plus interest.
However, the dividends issue is just the first battle in what promises to be an extended legal war.
"This is just a small part of it," Young said of the dividends issue.
In the notice of action for the lawsuit, Bill Zildjian alleges his father has misused company funds for his personal expenses and that his father has ignored established business regulations and protocols so as to maintain complete control of the company he founded.
The plaintiff also alleges his brother and company president Andy Zildjian undermines his position and influence on the business.
Bill Zildjian also claims that he's stuck in this scenario because he can't sell his shares in the company without his father's approval.
Essentially, Bill Zildjian is seeking a corporate divorce from Sabian and his family.
Statements of defence filed by Sabian deny Bill Zildjian's allegations, noting that company bylaws have been followed and business has been properly conducted.
Peter Crocco, the Woodstock lawyer representing Sabian, is away on vacation and couldn't be reached for comment.
Sabian clients include a who's who of drummers from the world of pop and rock music.
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