Background and Context
Exportadora de Sal S.A. de C.V. (ESSA), Mexico’s state-owned salinera based in Guerrero Negro, Baja California Sur, has successfully won a nullity lawsuit against Experiencia Nutrimental. The federal court in Mexico City declared three salt sale contracts for human consumption null and void, dismissing Experiencia Nutrimental’s claims of $115 million in damages. This victory marks a significant step in ESSA’s ongoing saneamiento (cleanup) process initiated by its General Director, Moisés Poblanno Silva.
The Dispute
In 2016, Experiencia Nutrimental sued ESSA for allegedly breaching three salt sale contracts. However, ESSA argued that the contracts were invalid due to being signed by an individual without proper authorization, and for failing to meet other contractual requirements. Moreover, ESSA’s primary product is industrial salt, not fine salt for human consumption.
Experiencia Nutrimental demanded an unrealistic amount of fine salt, which would have required ESSA to produce 1.47 million tons annually – an impossible feat given their current production capacity. This absurd claim still forced ESSA to register it as a contingent liability, hindering crucial investments for years.
Court Ruling
On April 30, the Seventh Civil District Court in Mexico City declared the contracts null and void, stating that they “have produced or will produce any legal effect.” The court also absolved ESSA from all claims made by Experiencia Nutrimental, effectively clearing the largest contingent liability from ESSA’s books.
Impact and Future Prospects
ESSA’s General Director, Moisés Poblanno Silva, emphasized that this ruling is part of the ongoing saneamiento process initiated in 2024. The successful elimination of contingent liabilities and strengthened commercialization of industrial salt production are crucial milestones in ESSA’s journey towards stability and growth.
Key Questions and Answers
- What was the dispute between ESSA and Experiencia Nutrimental about? Experiencia Nutrimental accused ESSA of breaching three salt sale contracts for human consumption. ESSA countered that the contracts were invalid due to improper signing and not meeting contractual requirements, while also pointing out that their primary product is industrial salt.
- Why was the claimed amount of fine salt unrealistic? The demanded quantity would have required ESSA to produce 1.47 million tons annually, which was impossible given their production capacity and the time needed to fulfill such a massive order.
- What is the significance of this court ruling for ESSA? The ruling declares the contracts null and void, dismissing Experiencia Nutrimental’s $115 million damage claims. This clears ESSA’s largest contingent liability, contributing to the ongoing saneamiento process led by General Director Moisés Poblanno Silva.
- How does this ruling benefit ESSA in the long term? By eliminating contingent liabilities and strengthening commercialization of industrial salt production, ESSA can focus on stability and growth, crucial milestones in its ongoing saneamiento process.
