In the Q3 2011 report, Marine Harvest reported that Marine Harvest Chile had initiated legal actions against its former Managing Director, Álvaro Jiménez Seminario, for serious breach of his corporate duties during his tenure. The legal actions would pursue, firstly, the civil liability of the former Managing Director for the breach of Chilean Corporate and Company Law and, secondly, the restitution of the benefits received from a fraudulent contract.
In a series of legal procedures associated with the above, an arbitration sentence has been issued in favour of Salmones Sur Austral S.A. ordering Marine Harvest Chile to pay an indemnification of USD 12.3 million. Although the sentence will be appealed, a corresponding amount will be charged to the Q2 2013 accounts for prudency purposes.
BACKGROUND
On June 27 2013, the initial sentence of the arbitration case "MARINE HARVEST CHILE S.A. versus SALMONES SUR AUSTRAL S.A." has been issued.
In this case, followed before the Santiago Chamber of Commerce Arbitration Centre, Marine Harvest Chile S.A. claimed that a Rearing Contract signed with the defendant was null and void because it was fraudulently organized and implemented by its former CEO Álvaro Jiménez Seminario, with the aid of Salmones Sur Austral S.A.'s shareholders. On the other side, the defendant issued a counterclaim arguing that the Rearing Contract was not void and that Marine Harvest Chile S.A. breached its obligations under such contract. Consequently the counterclaim asked for an indemnification for loss of profits in the amount of USD 42.492.959.
The arbitrator rejected the claim made by Marine Harvest S.A. and partially accepted Salmones Sur Austral S.A.'s counterclaim ordering to pay an indemnification of USD $12.300.000.
This sentence is not final and, furthermore, the arbitration case is only part of the litigation promoted by Marine Harvest Group in Chile in connection with the serious breach of the former CEO, Alvaro Jiménez Seminario, corporate duties during his tenure.
Marine Harvest is preparing a strong response to appeal to this ruling, which represents a very wrong message for business ethics and management behavior. The Court of Appeals of Santiago will have to issue the final sentence.