Order: Court dismissed dividend case by San José El Recuerdo

On January 20, 2020, the Eleventh Civil Court of First Instance of Guatemala issued a procedural ruling in the case filed by San José El Recuerdo, S.A. against Lisa, S.A., which sought to declare Lisa’s dividend rights extinguished through prescripción extintiva. Lisa filed five preliminary objections to the lawsuit, including lack of jurisdiction, lack of legal standing by the plaintiff, noncompliance with conditions precedent, untimely filing, and a defective complaint. The court rejected four of these arguments but agreed that the complaint itself was procedurally flawed.

As a result, the court dismissed the lawsuit entirely and refused to admit it for further processing. The ruling is a significant procedural victory for Lisa, S.A., as it prevents San José El Recuerdo, S.A. from continuing the case in its current form. The court found that the ordinary lawsuit was inadmissible due to serious formal defects. No costs were awarded in this procedural stage.