Los Angeles Times: A federal appeals court Friday ruled that Taco Bell is solely liable for $42 million in breach-of-contract awards to two Michigan men who created the diminutive Chihuahua mascot that starred in the brand's hit $500 million advertising campaign in the 1990s.
Joseph Shields and Thomas Rinks of Grand Rapids, Mich., filed suit in 1998 alleging breach of contract. The developers of a "psycho Chihuahua" cartoon had been in talks with Taco Bell advertising agents to adapt the character for TV spots when, the men claimed in their lawsuit, Taco Bell took the idea to another ad agency, TBWAChiatDay. In June 2003, a federal jury in Michigan ordered Taco Bell to pay the creators $30 million, and a federal judge tacked on nearly $12 million more in interest three months later. The judgments prompted Taco Bell to sue TBWA, arguing that the ad agency was liable for the disputed content. Click to continue
