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Mendoza Supreme Court Sets Manaos Payout at $807.7 Million After Finding Fraudulent Reclassification

Judges curtailed interest to avoid a disproportionate result in a misclassification case.

Overview

  • Refres Now S.A. must pay ARS 807,676,293.72, comprising ARS 223,419,076.66 in principal and ARS 584,257,217.06 in interest calculated to April 11, 2025, with further interest accruing until payment.
  • The court upheld liability for using a 2018 SECLO separation as an artifice to recast a traveling salesman as a lower category “promoter,” confirming a dependent relationship from October 2013 to December 2022 across Mendoza, San Juan and La Pampa.
  • Applying Civil and Commercial Code Article 771, the court replaced UVA-based updates with the Banco Nación consumer loan rate to temper interest, noting the claimant is not a vulnerable worker and is a business owner.
  • The tribunal rejected the company’s request to pay in installments and ordered full payment within five business days once the ruling becomes final.
  • Refres Now can seek an extraordinary federal appeal before Argentina’s Supreme Court, and founder Orlando Canido publicly criticized the Mendoza decision.