MATCO TOOLS Lawsuit: VILLANO et al v. TD BANK et al Goes to Arbitration
UnhappyFranchisee.com – MATCO TOOLS lawsuit by franchise owner to be settled via to arbitration.
In November, 2011, we wrote about the Matco Tools franchise lawsuit :
FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud
“…A father and son – David Villano, Jr. and David Villano III, through their attorneys, Marks & Klein, LLP of Red Bank, N.J., today filed a class action lawsuit against TD Bank and Matco Tools, Inc. alleging the tool company franchisor and the bank engaged in a loan fraud scheme to encourage unsophisticated borrowers to enter into risky business loans to buy Matco Tools franchises.
The scheme enabled Matco to sell more franchises and TD Bank to make risky loans without concern. The bank knew if the loans failed, the loans would ultimately be repaid by United States taxpayers through the SBA guaranteed loan program. Data from the SBA shows that from 2000 to 2010, Matco Tools’ SBA loans had a staggering 37.3 percent failure rate.”
On August 29, 2012 Judge Freda L. Wolfson ruled in favor of Matco and Danaher’s request for arbitration:
LETTER MEMORANDUM AND ORDER that Defendants Matco and Danaher’s Motion To Stay Pending Arbitration is GRANTED to allow the claims as between Plaintiffs and Matco and Danaher to be arbitrated as per the Distributorship Agreement; that Defendant T D Bank’s Motion to Dismiss is DENIED with leave to refile after the completion of the arbitration; that Defendant Matco and Danaher’s Motion to Dismiss is DENIED as moot; that this case is administratively terminated with the right to reopen after the completion of the arbitration. Signed by Judge Freda L. Wolfson on 8/29/2012.
Arbitration is seen by most as a serious setback for the Matco franchisee plaintiffs.
Read the Judges Memorandum & Order (PDF) here: Villano et al v. TD Bank et al (11-cv-6714)
Also read:
MATCO TOOLS Franchise Complaints (4000+ comments)
Mobile Tool Franchise Issues & Index
MATCO TOOLS Distributor Franchise (Overview with links)
ARE YOU FAMILIAR WITH MATCO TOOLS, DANAHER CORP, OR TD BANK? PLEASE SHARE AN OPINION OR INSIGHT BELOW.
Ken tredway an rick slob check run the company matco tools.
Who is rick slob check. Who is ken treadway
Any update on this Matco tools arbitration? I hope the arbitrator was not bought as usual. Check on arbitration outcome from Discovery Point arbitration- zees lost even if there were written docs. Arbitrators survive on this process and naturally support their customers, that is franchises.
MATCO TOOLS IS A SCAM WOULD NOT RECOMMENED MATCO TOOLS BAD NEWS