Analysis: Chiquita - Serious legal banana skins remain

[Judi Lynn]

Analysis: Chiquita - Serious legal banana skins remain
Posted by Ian Welsh, Commissioning Editor on Jul 5, 2011

Chiquita may yet lose a class action lawsuit related to its former operations in Colombia


The long-running saga surrounding Chiquita’s former operations in Colombia has taken a new turn. In early June a Florida judge ruled that class action lawsuits against the fruits giant will be allowed to proceed.

The action has been brought by family members of Colombians who were killed or tortured by terrorist groups. The plaintiffs allege that payments Chiquita made to paramilitary groups in Colombia mean that the company has responsibility for the atrocities committed by these groups.

Chiquita had asked the court to dismiss the claims, stating that it had been the victim of extortion. While the judge granted the company’s motion to dismiss claims for damages related to terrorism, the plaintiffs can continue with claims for damages against Chiquita for torture, war crimes and crimes against humanity.

One thing is not in dispute: the company did make payments to Colombian paramilitary groups. But Chiquita spokesman Ed Loyd says these were made purely to protect the company’s staff. “Throughout the 1990s our employees were massacred. On one occasion, four were butchered in front of their colleagues; on another 28 were murdered as they travelled to work on a bus.”

More:
http://www.ethicalcorp.com/governance-regulation/analysis-chiquita-serious-legal-banana-skins-remain