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A Florida federal judge announced Monday that he will approve a proposed $12.8 million settlement between Chiquita Brands International Inc. and victims suing the banana company over its funding of Colombian paramilitary groups. This decision is a significant development in the ongoing multidistrict litigation (MDL) claims against Chiquita.

MDL Claims Gets Approval : Settlement Details

In a remote hearing held on Zoom, U.S. District Judge Kenneth Marra expressed his intention to sign off on the settlement. The agreement involves Chiquita and the clients of attorney Paul Wolf, who represent family members of the 2,572 victims involved in the MDL claims. These lawsuits have been consolidated into a single, sprawling case.

The proposed settlement was announced last Friday, shortly after attorneys for the majority of the plaintiffs requested the court to sever the claims of Wolf's clients from the upcoming second bellwether trial, which was set to begin on July 15. The attorneys had long-standing disagreements with Wolf, arguing that forcing them to try a case together would lead to a mistrial.

Judge Cancels Second Bellwether Trial

Judge Marra decided to cancel the second bellwether trial, citing the need for the Eleventh Circuit to review his actions from the first trial before proceeding. "It's a narrow and limited purpose, and it doesn't justify another second trial when we can benefit from the Court of Appeals straightening out any errors that I may have made or affirming what I've done," Marra stated.

MDL Claims Gets Approval : Terms of the Settlement

Under the settlement terms, Chiquita will pay $12.8 million, with 33% allocated to Wolf for attorney fees. Wolf will receive half of his fees immediately, 25% upon the payment of the 750th claim, and the remaining 25% after 18 months. Plaintiffs have 18 months to file a claim, receiving either $1,327 for limited documentation or $3,404 for those with proof that their relatives were killed by the paramilitary group Autodefensas Unidas de Colombia.

Wolf acknowledged challenges in maintaining contact with all his clients over the past 15 years but committed to significant efforts to reach them through Colombian media.

Retained Jurisdiction

Judge Marra will retain jurisdiction over any disputes regarding a $250,000 attorney fee claim by Conrad & Scherer LLP, which asserts it performed work for a small group of Wolf's clients. The judge believes 18 months is sufficient to resolve this dispute.

MDL Claims Gets Approval : Background of MDL Claims

The plaintiffs in the MDL have operated separately as "non-Wolf plaintiffs" and "Wolf plaintiffs" for a decade, following an incident in 2013 when Wolf allegedly copied Chiquita's lead counsel on a message discussing case strategy. The non-Wolf attorney group also accused him of voluntarily disclosing confidential work product communications during discovery.

The motion to sever arose from a Spanish post by Wolf on a website linked to his Facebook page, which included the verdict form from the first trial. This post, which detailed the plaintiffs and their awarded amounts, was deemed to put clients at risk for violence and extortion in Colombia, violating a previous court order.

Settlement Fund Allocation

According to the settlement, any remaining funds after 18 months will be used for community projects in Apartadó, Colombia, such as schools or hospitals.

MDL Claims Gets Approval : Previous Bellwether Trial

In the first bellwether trial, jurors in West Palm Beach awarded $38.3 million to 16 plaintiffs, all survivors of victims of the AUC, whose deaths were central to the case. Chiquita was not found liable for one of the nine deaths due to insufficient evidence of AUC involvement.

Historical Context

This case marks the first trial in the MDL that began in 2008 when AUC victims' families sued Chiquita, claiming the company paid nearly $2 million to the AUC for protection in Colombia’s banana-producing regions. Chiquita executives testified that the extortions began in 1988 by the FARC and later by the AUC. In 2007, Chiquita pled guilty to federal charges related to these payments and agreed to a $25 million fine.

Attorneys for the plaintiffs dismissed Chiquita's extortion defense, arguing the company not only paid off the AUC but also supplied weapons to intimidate unionizing employees.

Legal Representation

The non-Wolf plaintiffs are represented by a coalition of attorneys from various firms, while the settling plaintiffs are represented by Paul Wolf. Chiquita is represented by attorneys from Blank Rome LLP.