Leeds lawyer in a landmark alleged cartel case

David Went from Exchange Chambers in Leeds is part of the legal team that has secured a High Court judgment that will result in a multi-billionaire Brazilian orange juice magnate and his son facing trial over their participation in an alleged illegal cartel.

The case is believed to the be the first ever private enforcement of Brazilian competition law in the English courts.

José Luis Cutrale, and his son, José Luis Cutrale Jr, were party to an alleged purchase cartel in Brazil with other major orange juice producers which had a significant adverse impact on Brazilian orange growers.

The growers are seeking damages which could run into the billions of pounds as the alleged cartel suppressed the prices growers could sell oranges at forcing thousands out of business and thousands more into financial ruin.

Instructed by PGMBM, the law firm acting for the orange growers, Went along with James Ramsden QC, James Flynn QC, Russell Hopkins, and Anirudg Mathur successfully argued that the case against the Cutrales should proceed in England because of José Luis Cutrale Snr’s extensive connections to the UK, including an exclusive London residence, and there being no realistic chance of litigation in England interfering with cases in the Brazilian courts which have been hopelessly delayed for years.

Commenting on the case, Went said: “This case is striking as it involves a purchase cartel which operated in Brazil and resulted in significant harm to Brazilian orange farmers. The cartel was investigated by the Brazilian competition regulator and fines were imposed on those responsible. However, the regime for follow-on damages actions in Brazil is still somewhat fledgling and uncertain and so the opportunity to bring these claims in England has offered a lifeline to the Brazilian orange farmers.”

Known in Brazil as the ‘Orange King’, José Luis Cutrale Sr owns and runs Cutrale, one of the world’s largest processors and distributors of concentrated orange juice, with his family, including son José Luis Cutrale Jr, co-defendant in this case.

In 2016, the Cutrales admitted engaging in illegal, anti-competitive practices between 1999 and 2006 and paid an administrative fine of more than £70 million. In addition, alleged co-conspirators Louis Dreyfus, Cargill and Citrosuco also confessed to cartel practices.

A report into the impact of the cartel found terrified farmers with one who admitted: “I had to tear down all the trees to automatically terminate a contract – I had to burn 70,000 trees to get out of the contract – I could only break the contract after I destroyed all my produce.”

A company spokesperson for Cutrale said: “Mr José Luis Cutrale Júnior intends to appeal and he is confident that the appeal will succeed. While we remain of the view that the English courts are not the appropriate forum for the claim against Mr José Luis Cutrale, the court has ultimately found itself bound to hear the claim against him as a result of the procedural rules – this bears no relation to the merits and we remain confident that Mr Cutrale will ultimately succeed in defeating the groundless claims against him.”