Revenues cause cymbal family to clash in court
Charles Mandel, Canwest News ServicePublished: Saturday, March 29, 2008
Bill Zildjian is suing his parents and siblings who run the world-famous cymbal company Sabian over alleged misuse of company funds.
Based in the small town of Meductic, N.B., the firm manufactures more than 900,000 cymbals annually for many of the world's most prominent drummers.
Sabian's more than 700 "name" customers include Phil Collins, and the drummers for Nickelback, Peter Gabriel, Prince, Billy Joel, Megadeth, Kid Rock, Tom Petty, Moby, Mariah Carey, Blackeyed Peas, Pink, Rush, Christina Aguilera and a number of jazz artists and symphony orchestras, among others.
The company's annual revenues are approximately $40 million, according to the statement of claim Bill Zildjian filed in a Fredericton court. However, in their statement of defence, company founder Robert Zildjian disputes the revenue amount as "substantially less."
The defendants in the suit include Bill Zildjian's parents, Robert and Willi, and his sister and brother, Sally Anne Teague and Armand Alexander Zildjian.
Bill Zildjian's suit alleges Robert Zildjian has "directed and attempted to control the business and affairs of Sabian Canada . . . with little or no regard for corporate formalities, procedures or requirements."
Bill further alleges Robert paid some $4.5 million in royalties to a Bermuda firm he set up and then in turn used at least some of that money to cover his and his wife's personal expenses and to maintain their lifestyle.
The suit contends that the money went to "the cost of maintaining their residence in Bermuda, life insurance premiums, club dues, maids, vehicle expenses, cablevision, telephone and travel."
Financial records and a proper accounting of funds have also been kept from Bill, according to the statement of claim.
Bill alleges that at the end of January 2008, the defendants terminated his use of Sabian e-mail, cellphone service and cut his corporate credit cards. The suit claims that at a directors' meeting in February 2008, the family members removed him as a director and then he was physically escorted from the meeting room.
None of the allegations have been proven in court. In a statement of defence filed in a Fredericton court, the defendants deny the allegations.
John Teague, vice-president of operations for Sabian, said he had no comment on the case. Sabian's lawyer, Peter Crocco, declined to take a phone call from Canwest News Service.
The suit seeks a financial accounting of the company's revenues, assets, money and asset transfers and investments, and a number of payment options to Bill. Failing that, it seeks an order directing the winding up, liquidation and dissolution of Sabian Canada.
It's not the first lawsuit Robert Zildjian has weathered. In a family legal battle in 1981, Zildjian split from the centuries-old, Boston-based firm of Avedis Zildjian and set up shop in New Brunswick.
Since then the company's brass alloy cymbals have become among the most widely used globally.
© The StarPhoenix (Saskatoon) 2008
Revenues cause cymbal family to clash in court
