A federal appeals court has ordered Taco Bell Corp. to pay the creators of the fast-food chain's popular Chihuahua sales mascot $42 million.
A Michigan jury in 2003 found that Irvine-based Taco Bell didn't properly pay the dog's creators when it launched its $500 million advertising blitz in the 1990s that popularized the phrase "¡Yo quiero Taco Bell!"
After the verdict, Taco Bell blamed advertising agency TBWA Chiat/Day for stiffing the dog's creators.
Taco Bell sued the ad agency over responsibility for the $42 million judgment.
The 9th Circuit U.S. Court of Appeals on Friday upheld a lower court's ruling ordering Taco Bell to make the payment.