Banana giant Chiquita Brands must pay $38.3 million to 16 family members of people killed during Colombia’s long civil war by a violent right-wing paramilitary group funded by the company, a federal jury in Florida decided.
The verdict Monday by a jury in West Palm Beach marks the first time the company has been found liable in any of multiple similar lawsuits pending elsewhere in U.S. courts, lawyers for the plaintiffs said. It also marks a rare finding that blames a private U.S. company for human rights abuses in other countries.
“This verdict sends a powerful message to corporations everywhere: profiting from human rights abuses will not go unpunished. These families, victimized by armed groups and corporations, asserted their power and prevailed in the judicial process,” Marco Simons, EarthRights International General Counsel and one plaintiff’s lawyer, said in a news release.
“The situation in Colombia was tragic for so many,” Chiquita, whose banana operations are based in Florida, said in a statement after the verdict. “However, that does not change our belief that there is no legal basis for these claims.”
According to court documents, Chiquita paid the United Self-Defense Forces of Columbia — known by its Spanish acronym AUC — about $1.7 million between 1997 and 2004. The AUC is blamed for the killings of thousands of people during those years.
Chiquita has insisted that its Colombia subsidiary, Banadex, only made the payments out of fear that AUC would harm its employees and operations, court records show.
Reacting to the ruling on social media, Colombian president Gustavo Petro questioned why the U.S. justice system could “determine” Chiquita financed paramilitary groups, while judges in Colombia have not ruled against the company.
“The 2016 peace deal … calls for the creation of a tribunal that will disclose judicial truths, why don’t we have one?” Petro posted on X, referencing the year the civil conflict ended.
The verdict followed a six-week trial and two days of deliberations. The EarthRights case was originally filed in July 2007 and was combined with several other lawsuits.
“Our clients risked their lives to come forward to hold Chiquita to account, putting their faith in the United States justice system. I am very grateful to the jury for the time and care they took to evaluate the evidence,” said Agnieszka Fryszman, another attorney in the case. “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.”
In 2007, Chiquita pleaded guilty to a U.S. criminal charge of engaging in transactions with a foreign terrorist organization — the AUC was designated such a group by the State Department in 2001 — and agreed to pay a $25 million fine. The company was also required to implement a compliance and ethics program, according to the Justice Department.
Chiquita Brands, one of the world’s largest banana producers, has been found liable for the deaths of several individuals in Colombia and has been ordered to pay $38.3 million to the victims’ families by a Florida jury. The case, which has been ongoing for several years, highlights the complex and often controversial issues surrounding multinational corporations operating in developing countries.
The lawsuit against Chiquita Brands was brought by the families of six individuals who were killed by paramilitary groups in Colombia between 1997 and 2004. The plaintiffs alleged that Chiquita Brands had made payments to these paramilitary groups in order to protect its banana plantations in the region. These payments, they argued, directly contributed to the deaths of their loved ones.
Chiquita Brands has long been accused of having ties to paramilitary groups in Colombia, with reports dating back to the 1990s detailing the company’s payments to these groups. In 2007, Chiquita Brands pleaded guilty to making payments to terrorist organizations in Colombia and agreed to pay a $25 million fine to the U.S. government.
The recent verdict in Florida represents a significant victory for the victims’ families, who have been fighting for justice for over a decade. The jury found Chiquita Brands liable for the deaths of the six individuals and ordered the company to pay $38.3 million in damages.
The case has sparked renewed debate about the responsibilities of multinational corporations operating in developing countries. Critics argue that companies like Chiquita Brands have a duty to ensure that their operations do not contribute to human rights abuses, while supporters of these companies maintain that they are often caught in difficult and complex situations.
In response to the verdict, Chiquita Brands has stated that it is considering its legal options and may appeal the decision. The company maintains that it has taken steps to improve its practices and ensure that it operates ethically in all of its locations.
Overall, the case against Chiquita Brands serves as a reminder of the challenges faced by multinational corporations operating in developing countries and the importance of holding these companies accountable for their actions. The verdict in Florida represents a step towards justice for the victims’ families, but also raises important questions about corporate responsibility and the need for greater oversight of multinational corporations.
