Bloomberg News

Heir to Ecuador Fortune Sues Brothers in Inheritance Dispute

September 29, 2011

(Updates with excerpt from lawsuit in third paragraph.)

Sept. 29 (Bloomberg) -- The daughter of the founder of Corporacion El Rosado, S.A. sued her brothers, claiming they stole part of her inheritance in the company, which owns supermarkets and shopping malls in Ecuador.

Vivian Czarninski Baier de Adler accused her brothers, Johny Jacobo Czarninski Baier and Danny David Czarninski Baier, of reorganizing El Rosado after the death of their father, Alfredo Czarninski in order to reduce her share of the company and increase their own. The suit, filed in Delaware Chancery Court yesterday, also accuses Vivian Czarninski’s niece of aiding the alleged scheme.

After battling her brothers over their father’s will for about four years “Vivian discovered the shocking truth: the defendants had reduced her hundreds of millions of dollars worth of holdings in El Rosado Group to almost nothing and the corporate stock that she equitably owns and that was stolen from her was located in Delaware and held by the Delaware LLC.”

The lawsuit grew out of a court fight in Israel, where Vivian Czarninski lives and where she sued in 2005 to uphold the terms of the family’s will. Alfredo Czarninski died in 2003.

Vivian Czarninski claims much of the family fortune is now in the hands of her brothers and being held in companies that are incorporated in Delaware.

Fled Germany

Officials at the company in Guayaquil, Ecuador, didn’t answer telephone calls today. An e-mail to the company wasn’t immediately returned.

The company owns 76 commercial stores in Ecuador and employs more than 7,000 people. Alfredo Czarninski fled Germany in 1936 and settled in Ecuador, where he founded a restaurant that he eventually expanded into one of the biggest corporations in the country, worth about $1 billion, according to the lawsuit.

The case is Vivian Czarninski Baier de Adler v. Upper New York Investment Company, LLC, no. 6896, Delaware Chancery Court (Wilmington).

--With assistance from Phil Milford in Wilmington, Delaware. Editors: Stephen Farr, Mary Romano

To contact the reporter on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.


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