Things Go Better With Coke

This article reports on two significant recent developments. The lead story centers on a national appellate court decision holding (we think unfairly) a regional Coca Cola bottler jointly liable for labor claims made against a distributor. Our second story, Shocked Back to Life?, offers some encouraging news to bondholders pursuing claims in bankruptcy.

In a decision that has left the mouths of attorneys agape, the National Labor Appeals Court has held a Coca Cola bottler jointly liable for labor claims brought by an employee of one of the bottler’s distributors. In Andrada v. O’Mari S.A.,¹ the appellate court determined that Coca Cola Femsa de Buenos Aires S.A. ("Femsa"), a Coca Cola bottler serving the Buenos Aires metropolitan region, was jointly liable for work-related injuries suffered by the plaintiff. The court based its ruling on Section 30 of the Employment Agreement Act.²