Appeal Ruling: Court of Appeals dismissed appeal by Las Margaritas

On November 4, 2024, the First Civil and Commercial Appeals Court of Guatemala partially upheld the lower court's ruling that rejected a lawsuit by Avícola Las Margaritas, S.A. seeking to declare that Lisa, S.A.’s dividend rights had prescribed. The court found that the obligation to pay dividends was not clearly enforceable, as the board retained discretion over the payment’s timing. The appeals court affirmed that this uncertainty prevented the legal deadline from starting and upheld Lisa’s objection for lack of veracity in the facts.

However, the appeals court rejected several other objections raised by Lisa, including the argument that third-party embargoes prevented the prescription deadline from running. The ruling emphasized that third-party actions cannot be used by a debtor to escape responsibility. Ultimately, the appeals court confirmed the core finding: the claim for prescription failed. It also excused both parties from paying appellate costs.