A three-member arbitration panel of retired judges has ruled Mar-Lee's founder, John Lees Jr., violated his employee contract after selling off 80 percent of his company, and the group is slated to listen to final arguments in Mar-Lee's suit against its former founder next week.

Earlier this year, the company filed a motion seeking a partial summary judgement on liability against Lees, alleging he violated his employee contract and competed against the scallop company. At the same time, Lees filed a cross motion, denying such claim.

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