Chiquita loses insurance appeal connected to paramilitary financing case

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Chiquita loses insurance appeal connected to paramilitary financing case

Chiquita continues to face legal issues amid its ongoing paramilitary financing trial. The banana giant was recently denied insurance coverage in a 2018 settlement case, Law 360 reports.

The case involves the families of six Americans killed by the Armed Revolutionary Forces of Colombia (FARC). Chiquita had reached an undisclosed settlement with the plaintiffs in February 2018.

Last year, the trial court ruled in the insurers' favor, finding that they did not owe Chiquita coverage for the settlement. 

However, the company said in its appeal that “the trial court wrongly shifted the burden of proof to it when it found that Chiquita hadn't provided evidence that the deaths were an ‘occurrence’ under the terms of their coverage, meaning that the deaths were unintended and accidental on Chiquita's part.”

On Friday 10, an Ohio state court ruled that the firm is not owed coverage by the three insurers: Travelers Property Casualty Corp., St. Paul Surplus Lines Insurance Co., and Federal Insurance Co. 

Blank Rome LLP, the law firm representing Chiquita, said after the ruling that the company intends to appeal the decision to the Ohio Supreme Court.

Chiquita is presently being accused of funding Colombian paramilitary groups during the, which the company argues was a result of extortion, and that they had no choice but to make said payments to ensure workers’ safety.


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