Court Revives Suit Against Taco Bell

A U.S. appeals court revived a lawsuit brought by two Michigan men who claim that Taco Bell stole their idea to use a Chihuahua in commercials.

Joseph Shields and Thomas Rinks of Grand Rapids, Mich., say they created the “Psycho Chihuahua” cartoon and spoke with advertising executives at the Tricon Global Restaurants Inc. unit in 1996 about licensing a live-dog version of their character.

They sued in January 1998 after the fast-food chain used a Chihuahua in a series of award-winning ads designed by an advertising agency in which the dog says, “Yo Quiero Taco Bell.”

The U.S. 6th Circuit Court of Appeals ruled that a lower federal court wrongly dismissed their breach-of-contract claims in June 1999.

“We’re reviewing the ruling and intend to vigorously defend our position,” a Taco Bell spokeswoman said.

Shares of Louisville, Ky.-based Tricon Global fell $1.09 to close at $42.90 on the NYSE.