Claims Over Dividend Prescription by Reproductores Avícolas
C. 01044-2018-00272 • Eighth Civil Court • Guatemala
Claims Over Dividend Prescription by Reproductores Avícolas
This is an ordinary civil lawsuit initially filed by Escobio, S.A. (later merged into Reproductores Avícolas, S.A.) against Lisa, S.A. The plaintiff sought to declare as prescribed the dividends decreed in the May 31, 2012 shareholders’ meeting in favor of Lisa. Lisa opposed the claim, arguing that the obligation was not enforceable as alleged, that prescription had been interrupted by judicial actions and embargo measures, and that the claim was an abusive attempt to extinguish its legitimate shareholder rights.
Decisions
Whether the dividend obligation decreed on May 31, 2012 was subject to prescription, considering enforceability and the interruptions raised by Lisa.
The Court concluded that the plaintiff failed to prove its claim and dismissed the lawsuit.
Lisa won at trial; the prescription lawsuit was dismissed.
Court dismissed dividend case by Reproductores
Appeal by Reproductores Avícolas against the trial court’s dismissal of the extinctive prescription claim.
The Court of Appeals accepted the appeal, declared Lisa’s dividend rights extinguished, and condemned Lisa to costs.
The appellate court overturned Lisa’s trial victory, declared the dividend obligation prescribed, and imposed costs on Lisa.
Declares Lisa’s dividend claim prescribed by Reproductores Avícolas
Cassation appeal by Lisa challenging the appellate ruling that wrongly extinguished its dividend rights.
Case under review; decision pending.
Lisa’s cassation appeal is pending; no final ruling yet.
Lisa appealed ruling in dividend case by Reproductores
Conclusion
Lisa, S.A. prevailed at trial, when the civil court rejected the extinctive prescription lawsuit. However, the Court of Appeals reversed that decision, siding with Reproductores Avícolas and ordering Lisa to pay costs. Lisa filed a cassation appeal before the Supreme Court, which is still pending. This appeal represents a decisive opportunity for Lisa to restore its dividend rights and overturn the appellate ruling that improperly favored the Avícola companies.