Note: this article will not be updated. Please see the News section or the article BANANAS!* under fire – a timeline for the latest developments.
Background
During the 1970s, the pesticide DBCP (Dibromochloropropane) was used extensively on banana plantations all over the world. DBCP, originally synthesized in 1955, had many brand names, such as Nemagon and Fumazone (read more about DBCP here).
DBCP was used to protect many different crops: vegetables, nuts, fruits, beans and cotton. The target pest was nematodes, tiny worms living in the soil, feeding on the roots. The pesticide was either pumped directly into the ground, or sprayed into the air with irrigation guns.1
In 1977, employees who had handled DBCP at the Occidental Chemical plant in California were found to be sterile. Within months, the Environmental Protection Agency (EPA) had suspended most uses of the chemical.2
In 1983, Sacramento attorney Duane Miller won a $4.9 million judgement against Dow on behalf of six of the Occidental plant workers. Two years later, the EPA permanently banned the use of DBCP in the United States.3
In March 1990, the Texas court announced they would allow cases with a foreign location as place of incident. This was not possible before due to a legal doctrine called “forum non conveniens”, which said lawsuits should be heard in the countries where the damage occurred.4
In 1992, this shift in regulation made it possible for 1,000 Costa Rican workers and their lawyers to win a case against Standard fruit (now Dole). The corporation agreed to pay $20 million to the affected workers. After legal fees, each worker was left with $1,500 to $15,000, depending on individual circumstances.5
In 1993, a class-action lawsuit was files in Texas by more than 16,000 banana plantation workers from Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua and the Philippines. The target was several fruit and chemical companies, including Dole, Chiquita, Del Monte, Dow, Shell and Occidental. The companies agreed to pay a total of $41.5 million in 1997 to those who proved they were sterile. However, when all legal fees were paid, the affected workers received relatively small payments.6
The Nemagon movement
The Nicaraguan Nemagon movement is the strongest independent popular movement in modern Nicaragua. It started up in the early nineties when former banana workers started to share strange experiences. Children were born with birth defects, women had miscarriages and the men seemed to be sterile. The former workers also suffered from skin and kidney diseases.
Under the name ASOTRAEXDAN (Association of Workers and Former Workers with Claims against Nemagon), this movement started protesting. They demanded justice, health care and coffins to bury their dead. An in-depth story about this can be found in the Envio Magazine article Victims of Nemagon hit the road (June, 2005).
In 1999, ASOTRAEXDAN began to push for a law to be passed in Nicaragua that would allow Nicaraguan workers to sue foreign companies. The law, known as "law 364", was registered in January 2001. In short, law 364 was directly intended to give DBCP victims and their relatives the right to demand compensation from the companies who imported and applied the chemical in Nicaragua. The law was instantly criticized by the U.S. Embassy in Nicaragua. They claimed the law being unfair to the transnational companies, and in March 2002, the Nicaraguan attorney general submitted a movement to the Nicaraguan Supreme Court to declare law 364 unconstitutional.7
In December 2002, Nicaragua’s Supreme Court ordered Dow Chemical Co., Shell Chemical Co. and Dole Food Co. to pay $490 million in compensation to 583 Nicaraguan banana workers. This landmark case was lead by plaintiff attorneys Thomas Girardi and Walter Lack, the same lawyers who fought the Erin Brockovich toxicity suit (which later became the blockbuster movie starring Julia Roberts).8
Neither Dow nor any of the other companies participated in the trial. Dow said they will not pay and called the judgment “unenforceable” because the case was supposed to be moved to a U.S. court. They also pointed at the previous claim of law 364 being unconstitutional. One year later, in October 2003, a judge in Los Angeles ruled that the judgment could not be enforced against the companies because they weren’t properly named or legally notified in the Nicaraguan court action.9
In April 2007, Amvac Chemical Co., one of the companies who produced and sold DBCP in the 1970s, agreed to pay a total of $300,000 to 13 Nicaraguan workers. In court papers, the company called the agreement a “compromise of disputed claims” and denied any wrongdoing.10
Tellez versus Dole
In 2004, Los Angeles based attorney Juan Dominguez teamed up with Duane Miller. Dominguez travelled to Nicaragua and started to register workers claiming they had been afflicted by the chemical. Over 10,000 clients were registered in Nicaragua alone.
In July 2007, the case was brought up in the Los Angeles Superior Court. Twelve workers alleged sterilization and accused Dole Food Co. and Dow Chemical Co. of negligence and fraudulent concealment in using DBCP. Compared to the cases from ’92 and ’93, this case was unique since no previous DBCP case had ever been presented to jurors.11
The companies acknowledged that DBCP can be linked to male sterility and that the product was used in Nicaraguan banana plantations. Dow also acknowledged that the possibility of harm existed, but said the product was safe as long as instructions were followed. Also, they claimed the quantities of DBCP were too small, and the open-air conditions too diffuse to harm workers.12
In 1977, Dow stopped their production of DBCP. Not only did Dole admit in court to using DBCP after this date, it demanded Dow to continue delivering it, or else Dow would be in breach of contract.
In November, 2007, the Los Angeles jury awarded $3.2 million to six of the twelve workers in compensatory damages. Jurors found that DBCP was defective and that its risks outweighed its benefits. They also found that Dole acted with malice and actively concealed the danger from its own workers.
Dow’s share of the damages ranged from 20% to 40% of the awards to each worker. Dow contended that the chemical was not defective if administered properly, and Dole denied that it had fraudulently concealed the danger. Dole called the verdicts unjust and appealed.13
Two weeks later, the jury added an additional $2.5 million in punitive damages against Dole as punishment for concealing the dangers of DBCP.
One of Dole’s attorneys, Rick McKnight, said the verdict was ”a huge defeat” for the workers. ”It doesn’t even pay their costs, much less their bills”, he said.14
Duane Miller said the verdict sends an important message to Dole: ”It lets [them] know that they’re accountable for what they do, even if they do it south of our border”, he said. ”Our reputation as a country is partially dependent on the reputations of our corporations doing things overseas”.15
But the case was not closed. In March 2008, the punitive damages were reduced by Judge Victoria Chaney from $2.5 million to six workers – to $1.58 million to four workers. Chaney found that because Dole was a user of the pesticide, not a marketer, the firm could not be subjected to liability without fault. She also reasoned that punitive damages may not be used to punish ”a domestic corporation for injuries that occurred only in a foreign country”.16
Dole later appealed and the case is still (May, 2009) pending in California.
The fraud case
In November 2008, Juan Dominguez brought two other DBCP cases on behalf of former Nicaraguan banana workers to the Los Angeles Superior Court.17
Dole claimed that all but one of 11 plaintiffs in the two cases had never worked on banana plantations and that the men were paid and coached by their attorneys. Several witnesses testified on videotape, some of them anonymous (the “John Doe witnesses”) since they claimed they feared for their lives for exposing the fraud.
In April 2009, Judge Victoria Chaney dismissed the cases.
“We’ll never know if anybody in Nicaragua was actually injured or harmed by the alleged wrongful conduct of the defendants, and people will never have the opportunity to learn, since this fraud is so pervasive and extensive that it has forever contaminated even our own ability to ever know the truth”, Chaney said during the April 23 hearing.
In May 2009, Dole attorneys tried to stop the film BANANAS!* from being shown based on the trailer. The film contains interviews with Juan Dominguez and courtroom scenes from the Tellez trial.
Judge Chaney refused to stop the film.
“Just so we’re clear, I am not in any way going to make, and I will not consider, any request for prior restraint on free speech”, Chaney said during the May 8 hearing.
Note: this article will not be updated. Please see the News section or the article BANANAS!* under fire – a timeline for the latest developments.
Links to the available transcripts from the Los Angeles court hearings:
Articles about the fraud case:
Notes and references
- Nicaragua fights for “Death’s Dew” compensation
Letta Tayler, Newsday.com, Dec 2, 2006
- Dibromochloropropane (DBCP): a review
National Center for Biotechnology Information (NCBI)
- Plantation workers look for justice in the North
Christian Miller, Los Angeles Times, May 7, 2007
- Plantation workers look for justice in the North
Christian Miller, Los Angeles Times, May 7, 2007
- Pesticide Hazard in Costa Rica
TED Case Studies
- Banana Workers Win Against Dow, Shell and Standard Fruit
Pesticide Action Network, Jan 6, 2003
- Death Sentence – an honorable job
Richard Leonardi, Mar 31, 2003
- L.A. attorneys may face punishment in Dole case
Alexa Hyland, L.A. Business Journal, June 16, 2008
- Dole, Dow and Shell Win Dismissal of Suit
Los Angeles Times, Oct 25, 2003
- Pesticide company settles sterility suit for $300,000
Christian Miller, Los Angeles Times, Apr 16, 2007
- Pesticide trial begins against Dole and Dow
Christian Miller, Los Angeles Times, Jul 20, 2007
- Plantation workers look for justice in the North
Christian Miller, Los Angeles Times, May 7, 2007
- Dole must pay farmworkers $3.2 million
John Spano, Los Angeles Times, Nov 6, 2007
- Dole must pay $2.5 million to farmhands
John Spano, Los Angeles Times, Nov 16, 2007
- Dole must pay $2.5 million to farmhands
John Spano, Los Angeles Times, Nov 16, 2007
- L.A. judge reduces Dole’s damages in pesticide case
John Spano, Los Angeles Times, Mar 11, 2008
- Mejia, et al. v. Dole Food Company, Inc., et al. and Rivera, et al. v. Dole Food Company, Inc., et al.