An Ohio appeals court on Friday upheld insurers’ victories in two lawsuits against Chiquita Brands International Inc. over coverage to settle lawsuits brought under the federal Anti-Terrorism Act.
Appeal court panel of three judges Travelers Property Casualty Corp. et al. v. Chiquita Brands International Inc. Said that there was no cover-up involved in the underlying lawsuit accusing the fruit grower of funding a terrorist group in the Republic of Colombia.
Chiquita had sought to overturn the insurers’ summary judgment awards, arguing that by paying the group it did not intend to harm the six Americans kidnapped and killed by the Armed Revolutionary Forces of Colombia in the 1990s. Court records show Chiquita said he paid for the security of his land and employees.
The court said, “The natural and expected result of sending protection money to a terrorist group engaged in a campaign of violence is that the group will use the money to continue that violent campaign but choose different targets.”
The appeals court also rejected Chiquita’s argument that the trial judge erred by viewing its argument as an extortion defense and relying on a 2013 ruling that American International Group Inc. unit National Union Fire Insurance Co. of Pittsburgh, PA Had no duty. Defend it against ATA lawsuits.
Families of terrorism victims sued Chiquita in federal court in Miami in 2008 under civil liability provisions of the Anti-Terrorism Act. The lawsuits were later consolidated and settled in 2018.
Travelers Company Inc. and Chubb Limited Unit Federal Insurance Co.. Two groups of insurers sued Chiquita in Ohio state court in Cincinnati in August 2013, seeking a judgment on its coverage obligations. The parties filed competing motions for summary judgment, and the trial judge ruled in favor of the insurers.
Representatives of the parties did not respond to requests for comment.
