SAN FRANCISCO (AP) -- A federal appeals court has ruled that Taco Bell Corp. is responsible for a $42 million judgment awarded to the creators of the fast-food chain's popular Chihuahua sales mascot.
A Michigan jury in 2003 found that Irvine-based Taco Bell didn't properly pay the dog's Grand Rapids, Mich., creators, Tom Rinks and Joe Shields, when it launched its $500 million advertising blitz in the 1990s that popularized the phrase "!Yo quiero Taco Bell!"
After the verdict, Taco Bell blamed advertising agency TBWA Chiat/Day for stiffing the dog's creators. Taco Bell sued the ad agency over responsibility for the $42 million judgment.
The 9th Circuit U.S. Court of Appeals on Friday upheld a lower court's ruling making Taco Bell responsible for the payment.
Taco Bell is owned by Yum Brands Inc., based in Lousiville, Ky.
