Summary

This is an ordinary civil lawsuit. The original plaintiff, Distribuidora Avícola del Norte, S.A. (later merged into Administradora de Restaurantes, S.A.), sued Lisa, S.A., seeking a declaration that Lisa’s right to collect dividends had prescribed. Lisa raised several preliminary exceptions, including incompetence, defective claim, lack of standing, failure of condition, and expiration of the legal term.

Decisions

Eleventh Civil Court of First Instance
February 6th, 2023
Issues

Whether Lisa’s preliminary exceptions barred the lawsuit for prescription of dividends.

Ruling

The court upheld Lisa’s exception of incompetence, finding that the dispute was subject to arbitration under the corporate bylaws of Distribuidora Avícola del Norte.

Effect

The court declined jurisdiction, directing the parties to resolve the matter in arbitration. No costs were imposed.

Order|Eleventh Civil CourtFebruary 6th, 2023
First Civil and Commercial Court of Appeals (First Chamber)
August 31st, 2023
Issues

Administradora de Restaurantes, S.A. (as successor of Distribuidora Avícola del Norte) appealed, arguing that the trial court erred in sustaining Lisa’s incompetence exception.

Ruling

The Court of Appeals refused to hear the appeal, holding that the appellant failed to clearly state its grievances as required by law.

Effect

The trial court’s decision stood and became final, confirming that the dispute must proceed in arbitration.

Appeal Ruling|Court of AppealsAugust 31st, 2023

Conclusion

The Guatemalan courts upheld Lisa’s defense that the dispute over alleged dividend prescription could not be litigated in ordinary courts because the company’s bylaws required arbitration. After the merger, Administradora de Restaurantes, S.A. continued the lawsuit and filed the appeal, but it was rejected for lack of proper grievances. The first instance ruling stood, leaving the matter to arbitration.