Order: Declares lack of jurisdiction, sends dividend case by La Perla to arbitration

On January 20, 2020, the Eleventh Civil Court of First Instance in Guatemala ruled on the preliminary objections raised by Lisa, S.A. in the dividend prescription lawsuit filed by Compañía Importadora La Perla, S.A. The defendant had argued incompetence, defective complaint, lack of standing, failure of condition precedent, and expiration of a term. In its dispositive section, the court declared all of Lisa, S.A.’s objections without merit, finding they did not prevent continuation of the case.

The judge ordered the process to proceed to the merits phase so that the substantive claim regarding the alleged prescription of dividends could be decided. Considering that the objections involved debatable legal questions, the court chose not to impose costs.