Order: Rejects dividends suit by Cerro Colorado, S.A.

On October 1, 2020, the Eleventh Civil Court of First Instance in Guatemala reviewed preliminary objections filed by Lisa, S.A. against a lawsuit brought by Cerro Colorado, S.A. seeking a declaration of extinguished dividend obligations. Lisa argued that the Guatemalan court lacked jurisdiction because Lisa is incorporated in Panama, and also alleged that the plaintiff’s petition was defective and unsupported by required documentation.

The court determined that Cerro Colorado had failed to submit the necessary shareholder meeting certifications to prove its claims. Because of the lack of supporting evidence and the procedural irregularities identified, the court accepted Lisa’s objections and rejected the claim. The ruling reinforced that disputes over dividends must meet strict procedural and evidentiary requirements, and that ordinary courts cannot admit deficient or improperly filed claims.