Embargo on McDonalds Mesoamerica

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.

Wednesday, August 29, 2012

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. The judge has spoken to McDonald's CFO to determine how much this would amount to. Auction of the McDonald's brands would be the next step in the foreclosure process. It has been made known, preliminarily, that McDonald's Mesoamerica, the operator of the franchise, will not talk about the embargo. "

In October 2011 the Constitutional Chamber of the Supreme Court of Justice ruled against an appeal by McDonald's against the decision of the Second Civil Chamber of San Salvador, after a trial that lasted 14 years, in 2005 which condemned the multinational to pay $23.9 million in payment of damages, and breach of contract against the company Servipronto of El Salvador.

"The transnational filed an appeal before the Constitutional Chamber, where it argued that the sanction was illegal because it had been tried twice for the same cause. In October 2011, the Constitutional Chamber of the Supreme Court empowered Servipronto to collect the fine. "

More on this topic

Banks or Real Estate Agents?

August 2013

State Banks in Costa Rica have a portfolio of over 2,300 properties from the repossessions made because of mortgage defaults.

Nacion.com reports that "... the banks, Banco Nacional, Banco de Costa Rica, Banco Popular and Bancrédito had 2,336 properties in their possession, which represents a 35% increase compared to the same period in 2012." Of that total, Banco Nacional has the largest number of foreclosed properties with 60%.

Embargo Ordered on McDonald's Brands in El Salvador

August 2012

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.

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

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.

Embargoes to Salvadoran Farmers Suspended

September 2009

The Legislative Assembly passed a series of measures favoring the agriculture sector.

One of the them obliges state banks to suspend property embargoes for a 9 month period, while recommending private banks to act in the same way.

"Another initiative asks the Government to continue providing 30% of Ficafé's annual quota. Ficafé is a refinancing trust for growers, whose quota expires on September 23", reported Elsalvador.com.

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McDonald's El Salvador

Organization that operates in Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
Phone: (503) 2530-1613

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