Landmark US Court ruling for Dominican Republic in US$50.0M Sunland suit

Santo Domingo.- A US Federal Court of Appeals overturned a federal judge’s ruling which had ordered Dominican Republic to pay more than US$50.0 million to companies Sunland / Siglo XXI.

The government called the ruling "a huge and great victory of the Dominican State and the citizens of our country, led by our government, reclaim the dignity of the Dominican people assailed by these companies."

The initial ruling was based on allegations by Sun Land & RGITC, LLC (Sunland) and Architectura Ingenieria Siglo XXI, LLC (Siglo XXI), but the federal judge blocked the order against the Dominican State and the dams and canals agency (INDRHI), which could refute for not being notified on time pending ruling due to failure in its internal processes, for which the Court of Appeals, in its landmark ruling handed down June 10, considered excusable.

The attorneys for the Dominican Sate told the of panel of three judges that contrary to what the plaintiffs’ claim, it was an administrative error which prevented them from presenting its defense on time.

The lawyers showed that instead of a single contract over which the plaintiffs sought damages, there are five contracts and the Dominican State hasn’t renounced its sovereignty over them and on which based its defense.