Chilean Appeals Court Annuls Arbitral Award in Joyvio-Australis Sale
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TL;DR
- The Santiago Court of Appeals annulled a US$300 million arbitral award against Isidoro Quiroga.
- This decision reversed a previous ruling by the Santiago Chamber of Commerce Arbitration Center in favor of Joyvio.
- The court found the arbitral tribunal exceeded the limits of the claims submitted.
- The dispute arose from Joyvio's 2019 acquisition of Australis Seafoods.
Overview
The First Chamber of the Santiago Court of Appeals has fully annulled a US$300 million arbitral award made by the Centro de Arbitraje y Mediación de la Cámara de Comercio de Santiago (CAM) against Chilean businessman Isidoro Quiroga and in favor of Chinese firm Joyvio. The original award stemmed from Joyvio's 2019 purchase of Australis Seafoods, a transaction worth over US$900 million, and was based on claims Joyvio made regarding alleged undisclosed overproduction and inflated company value.
What Happened
In August 2025, an arbitral tribunal at CAM Santiago ordered Isidoro Quiroga to pay approximately US$300 million to Joyvio, finding Australis had been overvalued due to undisclosed overproduction of salmon prior to the sale.
Quiroga's legal team sought annulment of the arbitral award, arguing the tribunal had ruled beyond the claims Joyvio brought forward, substituting a different cause of action than the one pleaded and debated.
On June 24, 2026, the Santiago Court of Appeals, by a 2-1 majority, annulled the arbitral award in its entirety. The court held that the tribunal's ruling was not congruent with the case as framed by the parties, specifically because it granted relief on a theory (reduction of price via restitution) that had not been argued.
By annulling the award, the court found that the arbitral decision violated the limits of party submissions under the Chilean International Commercial Arbitration Law, thus meeting the statutory grounds for annulment.
The decision reopens the broader commercial dispute, and Joyvio retains options to either seek formation of a new arbitral tribunal or appeal via a recurso de queja (complaint) to the Chilean Supreme Court, although such appeals are rarely admitted.
Context
The dispute originated from Joyvio's 2019 acquisition of Australis Seafoods from Quiroga for US$921 million. Joyvio later claimed that key information regarding production capacity and regulatory compliance had been withheld, resulting in an inflated transaction price and significant subsequent penalties.
The CAM Santiago arbitral tribunal partially accepted Joyvio's claims, rejecting allegations of fraud but granting an adjustment in price due to the overvaluation, resulting in the controversial US$300 million award.
This is reportedly the first time since the enactment of Chile's Ley de Arbitraje Comercial Internacional in 2006 that an arbitral award has been fully annulled by Chilean courts for exceeding the scope of the parties' arbitration agreement.
Why It Matters
- Annulment of the award removes a record-setting financial liability against Quiroga and could reset arbitration processes concerning large M&A transactions in Chile.
- The decision reinforces the importance of arbitral tribunals confining their rulings to the claims presented, upholding procedural safeguards under Chilean arbitration law.
- There may be continued litigation or arbitration, but the ruling stands as a notable precedent for annulment based on tribunals exceeding their mandate.