Ruling: Taco Bell, not agency, must foot $42M bill in contract dispute

01/26/2009 | Los Angeles Times (tiered subscription model)

TBWA\Chiat\Day, Taco Bell's agency for its talking Chihuahua ads, does not share liability for a $42 million breach-of-contract judgment, which is the sole responsibility of the quickservice chain, a federal appeals court has ruled. The award in the case goes to two Michigan men who developed the concept of the talking-dog ads, and pitched it to Taco Bell. Taco Bell sued the agency, arguing liability on the part of TBWA.

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