Molina, et al. v. Dimon do Brasil Tabacos Ltda, et al.
Plaintiffs, small farmers growing tobacco, brought action against tobacco companies, claiming that the companies had acted in bad faith by providing the plaintiffs misleading information on the plantation systems and failing to provide technical support promised to the plaintiffs. The plaintiffs sought the annulment of the contract with the companies and compensation for economic loss allegedly resulting from the use of toxic products in the plantations. The companies alleged that they had not acted in bad faith, claiming that all the technical support had been provided and that the loss of the plantations was due to climate conditions that were beyond their control. The Court ruled in favor of the plaintiffs, finding that the companies had known that the region was not adequate for tobacco plantations, but decided to nevertheless pursue the idea to benefit from the labor of semi-illiterate small farmers who could be paid less than those in other regions. The Court ordered the companies to pay damages and annulled the contract.