Appeal Ruling: Court dismissed dividend case by Reproductores

On March 12, 2024, the Eighth Civil Court of First Instance denied a claim by Reproductores Avícolas, S.A. (formerly Escobio, S.A.), which sought to extinguish its dividend obligations to Lisa, S.A. The lawsuit alleged that dividends approved in May 2012 had expired under the five-year prescription period. Lisa, S.A. responded by arguing that the obligation was not yet enforceable, as the company’s board had never specified the form or date of payment—conditions required by the corporate charter.

The court agreed with Lisa’s arguments and ruled that Reproductores failed to prove when the obligation became enforceable. Additionally, the court found that Lisa had taken actions—both judicial and extrajudicial—that interrupted any potential prescription period, including a 2017 demand letter and prior litigation related to its shareholder rights. Because Reproductores did not meet its burden of proof, the court rejected the claim and declined to impose court costs.