Claims Over Dividend Prescription

Claims Over Dividend Prescription by Villamorey

C. 01044-2017-00523 • Eight Civil Court • Guatemala

Claims Over Dividend Prescription by Villamorey

This litigation concerns Villamorey, S.A.’s attempt to extinguish Lisa, S.A.’s shareholder dividend rights through an ordinary civil action for extinctive prescription (Case No. 01044-2017-00523). Villamorey sought to declare time-barred the dividends decreed in 2010 and 2011. During the process, Villamorey also filed a constitutional amparo challenging the court’s recognition of Lisa’s legal representation, but that amparo was rejected with costs and a Q1,000 fine against Villamorey’s attorney.

Decisions

First Civil and Commercial Court of Appeals (Tribunal de Amparo)
March 7th, 2025
Issues

Amparo against the September 3, 2024 order refusing to revoke the court’s recognition of Lisa’s legal representation in the prescription case.

Ruling

The Court held that amparo cannot be used as a revisory instance for ordinary judicial decisions. It found no constitutional violation in the lower court’s decision to accept Lisa’s representation and therefore denied the amparo with costs and a Q1,000 fine.

Effect

Amparo relief was denied, costs were imposed, and Villamorey’s attorney was fined Q1,000.

Amparo Ruling

Rejected challenge to Lisa’s representation – Villamorey

March 7, 2025Appeals Court
Eighth Multi-Judge First Instance Civil Court
July 11th, 2025
Issues

Whether the dividends decreed on April 27, 2010 and July 5, 2011 in favor of Lisa, S.A. had prescribed.

Ruling

The Court declared Villamorey’s claim without merit and found no basis to extinguish Lisa’s dividend rights. The Court also denied Lisa’s peremptory defenses, but ultimately dismissed the entire prescription claim. No costs were awarded.

Effect

Villamorey’s ordinary prescription action was dismissed.

Judgment

Rejects Villamorey’s attempt to extinguish dividend debt

July 11, 2025Eighth Civil Court
Fifth Civil and Commercial Court of Appeals
November 5th, 2025
Issues

Villamorey’s appeal claiming that Lisa’s dividend rights from 2010 and 2011 were extinguished by prescription.

Ruling

The Court held that Villamorey failed to demonstrate that Lisa lacked creditor status or that the dividends had become legally time-barred. The appeal was denied, the July 11, 2025 judgment was confirmed, and costs were imposed on Villamorey.

Effect

The dismissal of Villamorey’s prescription action was fully confirmed.

Appeal 343-2025

Confirms denial of Villamorey’s dividend-prescription claim

November 5, 2025Court of Appeals

Conclusion

Lisa, S.A. prevailed in full. The First Instance Court dismissed Villamorey’s prescription action, the Court of Appeals confirmed that dismissal, and the amparo filed by Villamorey was denied with costs and sanctions. As a result, Lisa’s shareholder dividend rights remain intact, and Villamorey’s attempts to defeat those rights through prescription and constitutional challenges failed entirely.