U.S. District Court in Miami Rules in Favor of Dole and Rejects Nicaragua Judgment

Mon Oct 26, 2009 7:00am EDT
 
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Judge Cites Judicial Corruption and Discriminatory Law That Have Denied Dole Due
Process in Nicaragua
WESTLAKE VILLAGE, Calif.--(Business Wire)--
Dole Food Company, Inc. announced today that the United States District Court
for the Southern District of Florida has issued an order denying recognition and
enforcement of a $97 million Nicaragua judgment against Dole and another U.S.
company. 

In the Court`s Order Denying Recognition of Judgment in Miguel Angel Sanchez
Osorio et al. v. Dole Food Company et al., Judge Paul C. Huck cited separate and
independent grounds for non-recognition: the Nicaragua trial court did not have
jurisdiction over the defendant companies; the judgment did not arise out of
proceedings that comported with the international concept of due process; the
judgment was rendered under a system which does not provide impartial tribunal
or procedures compatible with the requirements of due process of law; and the
cause of action or claim for relief on which the judgment is based is repugnant
to the public policy of Florida. 

Judge Huck noted that "the credible and unrefuted medical testimony in this case
is that it is factually impossible for what is represented in the Judgment to
have occurred," and that due process "do[es] not permit awarding damages in the
face of clear scientific evidence of the absence of causation," or, as in this
case, "with proof that [the defendants] are not at fault." 

"The evidence before the Court is that the judgment … arose out of proceedings
that the Nicaraguan trial court did not have jurisdiction to conduct," stated
Judge Huck. "During those proceedings, the court applied a law that unfairly
discriminates against a handful of foreign defendants with extraordinary
procedures and presumptions found nowhere else in Nicaraguan law. Both the
substantive law under which this case was tried, Special Law 364, and the
Judgment itself, purport to establish facts that do not, and cannot, exist in
reality. As a result, the law under which this case was tried stripped
Defendants of their basic right in any adversarial proceeding to produce
evidence in their favor and rebut the plaintiffs` claims." 

Judge Huck went on to state that "the judgment was rendered under a system in
which political strongmen exert their control over a weak and corrupt judiciary,
such that Nicaragua does not possess a system of jurisprudence likely to secure
an impartial administration of justice." 

"The Court`s ruling indicates that corruption and a total lack of due process is
the norm for the Nicaragua judicial system," said C. Michael Carter, Dole`s
Executive Vice President and General Counsel. "The laws and procedures on which
this judgment has been awarded in Nicaragua are absolutely contrary to the
international concepts of fairness and due process." 

According to Judge Huck, "[c]ivilized nations do not typically require
defendants to pay out millions of dollars without proof that they are
responsible for the alleged injuries … Civilized nations do not target and
discriminate against a handful of foreign companies and subject them to minimum
damages so dramatically out of proportion with damage awards against resident
defendants. …" 

In reference to political corruption of the judiciary, Judge Huck went on to
state that Nicaragua`s "Special Law 364 and its application in the Osorio
proceedings could well serve as Exhibit A evidencing the lack of independent
tribunals in Nicaragua. The passage of Special Law 364 is itself further
evidence of undue political meddling in Nicaragua`s judicial process." 

Dole is the world's largest producer and marketer of high-quality fresh fruit
and fresh vegetables, and is the leading producer of organic bananas. Dole
markets a growing line of packaged and frozen foods and is a produce industry
leader in nutrition education and research. 

This release contains "forward-looking statements," within the meaning of the
Private Securities Litigation Reform Act of 1995 that involve a number of risks
and uncertainties. Forward looking statements, which are based on management`s
current expectations, are generally identifiable by the use of terms such as
"may," "will," "expects," "believes," "intends," "anticipates" and similar
expressions. The potential risks and uncertainties that could cause actual
results to differ materially from those expressed or implied herein include
weather-related phenomena; market responses to industry volume pressures;
product and raw materials supplies and pricing; energy supply and pricing;
changes in interest and currency exchange rates; economic crises; security risks
in developing countries; international conflict; and quotas, tariffs and other
governmental actions. Further information on the factors that could affect
Dole`s financial results is included in its SEC filings.

Dole Food Company, Inc.
Marty Ordman, 818-874-4834

Copyright Business Wire 2009

 

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