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Chiquita Brands to Pay $38.3M Following Federal Jury Verdict

Chiquita Brands to Pay $38.3M Following Federal Jury Verdict

A federal jury in Florida has ruled that Chiquita Brands must pay $38.3 million to 16 family members of individuals killed during Colombia’s long civil war by a violent paramilitary group funded by the company.

Chiquita Brands International logo

This decision marks a significant development in ongoing litigation against Chiquita, representing the first instance where the company has been found liable in any of the multiple similar lawsuits pending in U.S. courts.

The verdict, delivered on June 10, 2024, in West Palm Beach, Florida, underscores the legal and ethical challenges faced by multinational corporations operating in conflict zones. Chiquita, whose banana operations are based in Florida, was found to have financially supported the United Self-Defense Forces of Colombia (AUC), a right-wing paramilitary group notorious for its violent tactics during the Colombian civil war.

Historical Context and Legal Proceedings

The AUC, designated as a terrorist organization by the U.S. State Department in 2001, was responsible for numerous atrocities, including mass killings and kidnappings. Court documents revealed that Chiquita paid approximately $1.7 million to the AUC between 1997 and 2004.

EarthRights International logo

Chiquita has maintained that these payments were made to protect its employees and operations from harm, a defense that failed to sway the jury.

The lawsuit was originally filed by EarthRights International in July 2007 and was later consolidated with several other cases. The plaintiffs’ attorneys argued that Chiquita’s financial support for the AUC directly contributed to the group’s violent activities, resulting in the deaths of thousands, including the family members of the 16 plaintiffs in this case.

The Jury’s Verdict

After a six-week trial and two days of deliberations, the jury concluded that Chiquita knowingly provided substantial assistance to the AUC, which led to foreseeable harm.

Marco Simons, General Counsel for EarthRights International and one of the plaintiffs’ attorneys, emphasized the significance of the verdict, stating, “This verdict sends a powerful message to corporations everywhere: profiting from human rights abuses will not go unpunished.”

2024-06-10-Jury-Verdict-CHQ-TRIAL
Jury’s Verdict on June 10, 2024 | Read the verdict

Agnieszka Fryszman, another attorney representing the plaintiffs, highlighted the broader implications of the decision. “The verdict does not bring back the husbands and sons who were killed, but it sets the record straight and places accountability for funding terrorism where it belongs: at Chiquita’s doorstep,” she said.

Chiquita’s Response and Future Implications

Chiquita has expressed its intention to appeal the verdict. In a statement following the ruling, the company said, “The situation in Colombia was tragic for so many, including those directly affected by the violence there, and our thoughts remain with them and their families. However, that does not change our belief that there is no legal basis for these claims.”

The company had previously pleaded guilty in 2007 to a U.S. criminal charge of engaging in transactions with a foreign terrorist organization, resulting in a $25 million fine and the requirement to implement a compliance and ethics program.

Reactions and Broader Context

The reaction to the verdict has been mixed. Colombian President Gustavo Petro questioned why the U.S. justice system could rule against Chiquita while Colombian judges have not yet done so.

On social media, he called for the creation of a tribunal to uncover judicial truths related to the conflict, referencing the 2016 peace deal that ended the civil war.

Legal experts suggest that this landmark ruling could influence similar lawsuits and encourage more accountability for corporations operating in conflict zones. James Anaya, a professor of international human rights at the University of Colorado Law School, noted that while it is unusual to hold a corporation financially liable for human rights violations beyond the country’s borders, the case sets a precedent for future litigation.

The Path Forward

As additional trials for other victims are set to begin in July, this verdict may serve as a critical juncture for both Chiquita and other multinational companies facing similar allegations.

The ruling highlights the potential legal and reputational risks associated with corporate conduct in areas afflicted by violence and unrest.

For the families of the victims, the decision provides a measure of justice and accountability, even as the broader struggle for truth and reconciliation in Colombia continues.

The ongoing legal battles and appeals will determine the ultimate impact of this verdict on Chiquita and its operations, as well as on the broader landscape of corporate responsibility in conflict zones.

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