Florida Judge
Can't Enforce Nicaragua's $97
Million Judgment Against Dole
MIAMI
- A Florida judge has said a $97
million judgment against U.S. food giant
Dole and Dow Chemical Co. cannot be enforced
because the Nicaraguan court that issued it
neither had jurisdiction nor met
international legal standards.
A trial court in Chinandega, Nicaragua,
had awarded the money in 2005 to 150
Nicaraguan citizens who said they worked on
Dole banana plantations between 1970 and
1982.
The workers said they had been exposed to
a pesticide, dibromochloropropoane or DBCP,
that was banned in the U.S. after it was
linked to sterility in factory workers in
1977. Dow made DBCP from 1957 until 1977,
and Dole used it on the banana farms it
operated in Nicaragua until 1979.
The court awarded the compensation to the
plantation workers for infertility caused by
the pesticide under a special law enacted by
the Nicaraguan legislature in 2000
specifically to handle their claims.
That law "unfairly discriminates against
a handful of foreign defendants with
extraordinary procedures and presumptions
found nowhere else in Nicaraguan law," U.S.
District Judge Paul Huck wrote in his order
Tuesday.
Huck's criticism of the special law and
the trial court proceedings cited U.S. State
Department reports concluding that Nicaragua
lacks an effective civil law system, with
judges susceptible to corruption and
political influence.
"The Nicaraguan trial court found
exposure to DBCP simply from the fact that a
plaintiff purportedly worked on a banana
farm, without regard for the type of work
performed (and whether it involved exposure
to DBCP) or the duration of the work," Huck
wrote.
Phone messages and e-mails to the banana
workers' attorneys and Dow's spokesman and
lawyers in Miami were not immediately
returned Wednesday, nor was a phone message
left for a spokesman at the Nicaraguan
embassy in Washington.
Huck's ruling will affect numerous
verdicts in Nicaragua against Dole that
resulted in judgments totaling about $2
billion, said Theodore Boutrous, Dole's Los
Angeles-based attorney.
"It's a very strong ruling that makes
clear that any judgment emanating from
Nicaragua in these cases in unenforceable
because of the flaws in that system," he
said.
Dole and Dow's appeal of the judgment in
Nicaraguan appellate court is still pending.
The companies also contended that the
judgment was part of a conspiracy by the
banana plantation workers' attorneys to make
fake DBCP claims in Nicaragua and the U.S.
Those allegations were handled as a separate
case.
In June, Los Angeles Superior Court Judge
Victoria Chaney dismissed that case, citing
an "outrageous and profound" conspiracy to
extort Dole with false claims by purported
plantation workers who said they had been
rendered sterile by exposure to the
pesticide DBCP in the 1970s.
Testimony showed the men were not
plantation workers and were recruited by a
Los Angeles lawyer and a Nicaraguan
associate to lie. Chaney blamed at least
four law firms, corrupt Nicaraguan judges
who accepted bribes and at least four
medical labs that were paid to fake the
results of sterility tests.
Since Chaney's ruling, Dole has
petitioned a California appeals court to
dismiss yet another case based on the same
evidence. Dole claims that a $1.6 million
judgment awarded before the alleged fraud
was uncovered should be dismissed. |