Embargo Ordered on McDonald's Brands in El Salvador

After the multinational’s failure to pay a Salvadoran businessman who won a lawsuit against them, a court has ordered an embargo of the 36 McDonald's brands in the country.

Thursday, August 16, 2012

In October 2011, after 14 years of litigation, the Salvadoran Supreme Court ruled in favor of the company Servipronto of El Salvador.

The Supreme Court decision ordered the multinational McDonald's to pay $23.9 million in damages.

Roberto Bukele, from the Servipronto company in El Salvador protagonist of the conflict, said that he ".... won a new suit against the fast food chain McDonald's having managed to get a judge from the commercial court of San Salvador to order an embargo on the transnational, which was notified of the measure in June. The McDonald brands, all well known in El Salvador, no longer belong to the company headquartered in the U.S., they could be auctioned off and given over to anyone who wants to buy them. "

More on this topic

Final Ruling in $23 million Trial Against McDonald's

October 2011

After a 15 year legal process, the Constitutional Chamber of El Salvador has upheld a ruling in the suit by a local businessman against the McDonald's Corporation.

The commercial trial for breach of contract between the McDonald's company and the Salvadoran corporation Servipronto began in 1997.

Embargo on McDonalds Mesoamerica

August 2012

Failure to pay $24 million in compensation to Servipronto has led to an embargo of the brands McDonald's, Quarter Pounder, Big Mac and Ronald McDonald's.

An article in Elmundo.com.sv reports that "The executing judge is setting an embargo on the royalties paid by McDonalds Mesoamerica to McDonald's Corp.

McDonald's El Salvador Will Appeal Ruling

September 2009

Carlos Castillo, lawyer of the Corporation, assured they will file an amparo action.

It will be filed before the Constitutional Court of the Supreme Court of Justice, in response to yesterday's ruling, which sentenced the corporation to pay $23.9 million to Salvadoran company Servipronto.

McDonald Fined $24 Million in El Salvador

September 2009

After 14 years of litigation, the Supreme Court of Justice ruled in favor of Salvadoran company Servipronto.

The mercantile trial for contract noncompliance between Servipronto and McDonald's began in 1997.

"The case is not closed for McDonald's. The legal representative of the corporation, Carlos Castillo, confirmed that they will file an amparo remedy before the Constitutional Court", reported Elsalvador.com.

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