Brazil planes scandal: Dominican court refuses to hear lawsuit

Santo Domingo.- A NationalDistrict court on Tuesday refused to hear a US$8.7 million lawsuit filed againstBrazil plane-maker Embraer, citing a lack of territorial jurisdiction

The 1st Civil Court ruled thatthe lawsuit for damages on breach of contract filed by Silverstar Ventures LTD,headed by José V. Lopez Perrota, stemmed from a contract negotiated by DominicanState officials to buy 8 Super Tucano aircraft from Embraer.

On Nov. 8, 2012, judge Eunice PerezMinaya handed down a ruling in the civil suit court, where it emerged that Embraerpromised Silverstar Ventures LTD 8% of the sale total for 15 aircraft.

The Brazilian company askedthe court to refuse the lawsuit, claiming that under the "SupplementaryProvisions to our reference letter VPD-238/200," both sides now in litigation"issued express power of attorney" to the courts in Sao Paulo,"to hear any litigation that may arise between them."