Embargo on McDonalds Mesoamerica.
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,
reports Elmundo.com.sv (Aug. 29, 2012). The executive 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 that McDonald's Mesoamerica, the operator of the
franchise, will not talk about the embargo. In Oct. 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 damages, and
breach of contract against Servipronto of El Salvador. The transnational
filed an appeal before the Constitutional Chamber, which ruled that the
sanction was illegal because it had been tried twice for the same cause.
In Oct. 2011, the Constitutional Chamber of the Supreme Court empowered
Servipronto to collect the fine.