Amparo Ruling: Upholds arbitration clause in Lisa’s favor; Torre Nova appeal denied

On September 20, 2022, the Constitutional Court of Guatemala rejected the appeal filed by Inversiones Torre Nova, S.A., which had sought constitutional protection to keep its dividend-prescription lawsuit against Lisa, S.A. in the ordinary civil courts. The Court reaffirmed that Torre Nova’s own constitutive documents contain a binding arbitration clause requiring shareholder and dividend-related disputes to be resolved through equity arbitration. The Court held that the lower courts correctly applied this clause when they upheld Lisa’s exception of lack of jurisdiction, preventing Torre Nova from bypassing arbitration.

On that date, the Constitutional Court confirmed the denial of amparo and ruled that Torre Nova must honor its contractual commitments. It emphasized that attempts to sidestep the arbitration mechanism were unfounded and amounted to using amparo as a third review instance, which is constitutionally improper. The ruling not only protects Lisa, S.A. from frivolous litigation but also reinforces the principle of pacta sunt servanda, obligating parties to respect arbitration agreements voluntarily assumed in corporate charters.