Appeal Ruling: Court upheld dismissal and adjusted cost penalties

On August 28, 2012, the First Superior Tribunal of Panama upheld the 2008 judgment dismissing Lisa, S.A.’s claims against Villamorey, S.A., San Cristóbal, and Inversiones Truchu. The appellate court found that Lisa failed to meet the burden of proof regarding its allegations of fraudulent withholding of dividends. It also confirmed the lower court’s finding that Villamorey’s counterclaim was valid, awarding Villamorey $200,000 in damages.

However, the Tribunal agreed to reduce the cost penalties imposed on Lisa. The original order of $1.2 million in legal costs was decreased to $669,200, and the costs on the counterclaim were reduced from $40,000 to $25,200. The court reasoned that because the case was declaratory and not based on a fixed monetary claim, a more moderate application of the cost schedule was appropriate. All other parts of the 2008 ruling remain in force.