• Costa Rica Coffee Guide

Court Orders McDonald’s To Pay Salvadoran Company

December 16, 2005

SAN SALVADOR (EFE) – The fast food chain McDonald’s announced last week that it will appeal in El Salvador’s Supreme Court a ruling ordering them to pay local company Servipronto almost $24 million in damages.

 

On Dec. 7, a Supreme Court panel ordered the multinational to pay the Salvadoran company $23.9 million and give back the franchise it “unilaterally” withdrew in 1996.

 

That year, McDonald’s canceled the franchise it had awarded Servipronto, owned by Salvadoran Roberto Bukele, on the grounds it was not meeting the company’s standards of quality.

 

Servipronto may continue to use the brand name until 2016, the ruling said. In a communiqué released by McDonald’s on Dec. 9, the company called the court’s ruling “not consistent” with the facts of the case, and said it would appeal.

 

McDonald’s representative Roberto Romero said, “It is unfortunate that less than a month before the Central American Free-Trade Agreement with the United States (CAFTA) goes into effect, an inconsistent ruling comes down that flagrantly violates McDonald’s copyright.”

 

Romero added: “We are concerned that U.S. businesses with an eye on El Salvador get this type of message, which contravenes the rule of law, prompting legal uncertainty.”

 

You may be interested

New Migrant Caravan Leaves Honduras in Pursuit of American dream
Central America
5 views
Central America
5 views

New Migrant Caravan Leaves Honduras in Pursuit of American dream

Noe LEIVA / AFP - January 17, 2021

Some 3,000 people left Honduras on foot Friday in the latest migrant caravan hoping to find a welcome, and a…

Climate Change Spurring Frog Extinctions: Conservationists
News
5 views
News
5 views

Climate Change Spurring Frog Extinctions: Conservationists

AFP - January 16, 2021

Three Central American frog species have gone extinct and many others may soon follow as their populations are ravaged by…

Rare White Tiger Born at Nicaragua Zoo
News
7 views
News
7 views

Rare White Tiger Born at Nicaragua Zoo

AFP - January 16, 2021

A rare white tiger, named "Nieve" (snow in Spanish) was born at the Nicaragua zoo, and is being raised by…