La Polar. Civil dispute
1. Deal Description
Guerrero Olivos has been assisting La Polar (one of the most important retail companies in Chile) since 2014 in a civil trial commenced by AFC II (public entity that manages unemployment insurance).
The plaintiff filed a lawsuit against La Polar claiming that, due to a fraud committed by its executives regarding an important amount of accounts receivable, the investment made by AFC II in such company (bonds and stock) suffered a great decrease.
In the first instance, the pertinent Civil Court ruled against our client. However, the Court of Appeals of Santiago overturned such judgment and ruled in favor of La Polar on account of the compelling arguments put forward by Guerrero Olivos during the oral arguments before such Court.
The plaintiff subsequently filed an appeal (recurso de casación) before the Supreme Court. On 19th December 2023, the Supreme Court confirmed the Second Instance ruling, therefore the judgment is now final.
The importance of this trial is the following: (i) it is in the context of one of the most relevant financial scandals in Chile; and (ii) it required deep knowledge in both private and public law. Indeed, AFC II was contending that La Polar is liable (as a corporate entity) for the fraud committed by its executives, therefore should pay compensation. Guerrero Olivos has argued that La Polar was also a victim of such fraud, in fact, La Polar almost went bankrupt as a result; (iii) the significance of this outcome for our client was that they saved UF 305,000 (USD12,500,000) and with the judgment now confirmed, they have been granted legal certainty and can bring closure to this complex matter; (iv) it is also worth noting that Guerrero Olivos was the only firm that obtained a favorable judgment. Other prominent law firms represented the same client without success.
2. Counsel list
Counsel to La Polar: Guerrero Olivos
Lead partner: Sergio Yávar
Partner: Benjamín Ferrada
Associates: Pablo Rioseco, Andrés Cuevas and Rosario Díaz
Counsel to AFC II: Ortíz y Cía.
3. Date of closing
19/12/2023
4. Deal Value
USD12.5 million
5. Jurisdictions involved
Chile