The Superior Court of Mexico has overturned a lower court ruling that found Yahoo liable
for $2.75 billion in damages. Plaintiffs Ideas Interactivas and holding company Worldwide Directories sued Yahoo over breach of contract and lost profits on a yellow pages service.
Bazan-Canabal tells Reuters that he is a former Yahoo employee Carlos Bazan-Canabal and partner of Ideas Interactivas and Worldwide Directories helped to launch Yahoo Mexico. He says the dispute arose from agreements Yahoo Mexico signed with Ideas Interactivas between 2002 and 2004. Those agreements covered an online business search function, Yahoo! Paginas Utiles, as well as printed volumes.
When the venture initially succeeded, Yahoo and Ideas Interactivas, according to Bazan-Canabal, agreed to expand their operations into Puerto Rico, Central America, Australia, and Japan. The deal was slated to extend to 2009, with options for further extension, but Yahoo unilaterally stepped out of the deal. Yahoo's departure from the deal, Bazan-Canabal says, caused Ideas Interactivas to go bankrupt.
Yahoo Mexico is still liable for $172,500 in damages. An appeal of the Superior Court's reversal is possible, and given the amount of original damages awarded, likely.