Posted on: Friday, August 3, 2001

Chiquita, Dole in court over banana import rights

Bloomberg News

LOS ANGELES — Chiquita Brands International Inc. sued rival banana producer Dole Food Co. for allegedly failing to transfer import licenses to Chiquita's distributor in the European Union.

Chiquita claims that its distributor, NV Bananic International, is entitled to receive import licenses for about 4.2 million bananas from Dole each year through 2005. Chiquita's lawsuit, filed today in U.S. District Court in Los Angeles, claims it has yet to receive a single import license.

The lawsuit follows the resolution of an eight-year trade dispute between the United States and European Union. In July, the United States formally lifted $191 million in retaliatory duties on EU goods in acknowledgement of U.S. banana distributors' increased access to the European market.

Chiquita claims that Dole's "sole justification" for not transferring the licenses is that the banana trade rules are now "radically different," and thus Dole claims it is excused from its earlier agreement with Bananic.

Westlake Village, Calif.-based Dole could not immediately be reached for comment. Dole is the world's largest fruit and vegetable producer.

Cincinnati-based Chiquita, which sells in 60 countries, is the world's largest banana producer.

The suit's allegations include intentional interference with contractual relations, interference with prospective economic advantage and unfair competition. Chiquita seeks $50 million in damages, the value of the disputed import licenses through 2005. It also asks the court to stop Dole's conduct.

Chiquita shares rose 2 cents to $1.29, while Dole shares fell 18 cents to $22.37.