Long-running litigation between fruit companies Geest, Fyffes and the Windward Isles Banana Development and Exporting Company (Wibdeco) has been settled.
The actions arose out of the purchase in 1996 by Fyffes and Wibdeco, as joint venture partners, of Geest's Caribbean banana operations. Statements from the companies said all parties regarded the settlement as satisfactory.
Fyffes and Wibdeco have "unreservedly withdrawn" allegations of deceit and all other claims against Geest and its merchant bankers Morgan Grenfell and have withdrawn their claim for breach of warranty against Geest.
They had sought damages of £14.5 million sterling (#23.99 million), claiming fraudulent misrepresentation by Geest and its advisers. In addition, damages of $56.5 million (#59 million) were sought under warranties regarding the valuation of a banana plantation in Costa Rica.
As part of the settlement, Geest is to release Fyffes from indemnity agreement obligations to deposit "ship escrow monies", currently estimated at about £25 million sterling, with Geest. But the agreements involved - covering lease payment for two ships concerned with the acquisition deal - will remain in place.
The legal actions which began in 1998 have now been dismissed and Fyffes will face legal costs of about £1 million - its own costs and a contribution to the costs of Geest and Morgan Grenfell.
The litigation arose out of the acquisition in early 1996 by Fyffes and Wibdeco of the banana business of the British group Geest for £147.5 million sterling. Both sides said the end of the litigation would allow them concentrate on the future.
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