A Santiago, Chile-based appeals court has annulled a previous ruling from a Chilean arbitration tribunal that ordered Isidoro Quiroga, the previous owner of salmon-farming company Australis, and members of his family to pay USD 292 million (EUR 256 million) to Chinese seafood firm Joyvio, which currently owns the firm.
Last year, after more than two years of trial, the Santiago Chamber of Commerce ruled that Quiroga had overpriced Australis when selling to Joyvio in 2018 and ordered USD 217 million (EUR 191 million) as a base amount, in addition to some USD 75 million (EUR 65.9 million) for interest accrued since 2019, to be mostly paid by Asesorías e Inversiones Benjamin – Quiroga’s investment firm – as well as two other investment firms related to members of Quiroga’s family.
However, the Santiago appeals court has now found that the Santiago Chamber of Commerce’s decision was outside its scope of action under the terms of the arbitration agreement. While Joyvio’s original complaint was related to supposed damages based on the alleged willful conduct of the defendants, the appeals court determined the chamber’s decision was more related to restitution and a reduction in the sales price.
“We welcome the decision of the Santiago Court of Appeals, which accepted our request to annul the arbitration award. We are very satisfied that a legally inadmissible ruling has been invalidated, the seriousness of which had already been flagged by renowned Chilean and foreign experts,” Asesorías e Inversiones Benjamin said in a release. “The resolution … reestablishes the rule of law by annulling a decision that departed from what was requested in the lawsuit and what was debated in the trial, ignoring essential principles of due process and respect for contracts.”
Asesorías e Inversiones Benjamin added that the ruling came despite “pressure by Joyvio, including the dissemination of false and tendentious information,” noting that the ruling strengthens legal certainty and confidence in Chile’s justice system.
Joyvio purchased Australis from Quiroga in 2018 for USD 921 million (EUR 809 million).
Following the sale, Joyvio alleged Quiroga and the firm’s board of directors at the time hid, falsified, and adulterated critical information during the sale’s due diligence process, including what the company now deems was deliberate overproduction to inflate salmon production numbers and, therefore, the company’s valuation when it came time to negotiate a sale.
In 2023, Joyvio filed a lawsuit against Quiroga seeking USD 1.22 billion (EUR 1.07 billion) in restitution and damages and accused Quiroga and former Australis executives of fraud and unfair administration. The defendants have called the accusations “falsehoods and slander,” questioning why the accusations surfaced years after the purchase.
