Ryko Prevails in Legal Dispute

“This case was important in assuring that our rights were identified and protected, especially as it relates to the enforceability of our distributor contracts,” says Ryko CEO.

Ryko Manufacturing Co. Inc., a North American manufacturer of car wash equipment and a provider of service support and chemicals to the industry, has prevailed in its legal action against its former distributor, Nationwide Wash Systems Inc. of Minnesota.

Federal Magistrate Judge Celeste Bremer, seated on the U.S. District Court for the Southern District of Iowa, filed her decision in May 2011 and ruled in Ryko’s favor on claims that Nationwide had failed to pay Ryko certain amounts due for parts and whole goods purchases.

In addition, the Judge denied all of Nationwide’s counterclaims, including the allegation that Ryko had breached its 2008 distributorship agreement with Nationwide.

The two-year long case stemmed from both Nationwide’s failure to pay on unpaid account balances and interest on goods purchased by Nationwide and whether Ryko owed Nationwide rebates and credits under the terms of the distribution contract between the two parties, an assertion that the Judge felt Nationwide failed to establish.

“As a leading car care industry supplier, we’re committed to actively strengthening our distributor network. This case was important in assuring that our rights were identified and protected, especially as it relates to the enforceability of our distributor contracts,” said Steven L’Heureux, president and CEO of Ryko.

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