Case Study - Example of Discriminatory Law In 2001, Nicaragua enacted "Special Law 364" to handle claims of sterility due to alleged exposure to the pesticide 1,2-dibromo-3-chloropropane (DBCP). The claim plaintiffs worked on banana plantations where they were exposed to DBCP, which was common at the time but has since been banned in the U.S. and Nicaragua because it may affect male fertility. "Special Law 364" enforced a long list of onerous conditions for the American companies that wanted to defend themselves in DBCP cases, which were re-filed in Nicaraguan courts after the cases were dismissed in the U.S. on the basis of "forum non conveniens". Some of the conditions that "Special Law 364" imposed were that the defendants post a USD 100,000 bond per plaintiff in order to defend the case. It also repealed the applicable statutes of limitations, requiring that the complaint be answered within three days, that all evidence be submitted within the next eight days, and that a verdict be rendered three days later. If a plaintiff was able to produce two laboratory tests that stated he is sterile or has a significantly reduced sperm count, "Special Law 364" creates an irrefutable presumption of causationeven if there was evidence that the plaintiff has children conceived after exposure to DBCPand has a minimum damage award of USD 100,000.

The Nicaraguan plaintiffs in one of the first suits brought under "Special Law 364" obtained a USD 97 million judgement against the U.S. defendants and then sought to enforce the judgement in a Florida court. The court declared the judgements unenforceable becauseamong other thingsthe Nicaraguan court lacked jurisdiction over the U.S. defendants and the irrefutable presumption of causation and unfair targeting of U.S. companies violated due process.

1.What was made wrong from the beginning in both sides? What was the root cause for this situation?

2.Consequences for both companies?

3.Read, describe, and discuss every single The Hague Convention Articles applied for this case. Why do you think that Nicaragua and U.S.A didn't support this Convention?