Honduras avoids $460 million arbitration claim by JLL Capital

Honduras has successfully avoided a $460 million international arbitration claim brought by the Mexican firm JLL Capital. The International Centre for Settlement of Investment Disputes (ICSID/CIADI) ruled that it lacks jurisdiction to resolve the dispute.

The case originated from legal proceedings in Honduras involving JLL Capital’s subsidiary, CA Capital. The Mexican company alleged that the Honduran state had expropriated its investment and denied justice, violating the Free Trade Agreement between Mexico and Central America.

Representing the Honduran state, the Attorney General’s Office (PGR) argued that the dispute involved measures related to financial services, a sector excluded from the investment protection chapter of the treaty. The tribunal accepted these jurisdictional objections by majority vote, meaning it cannot rule on the merits of the case. Attorney General Dagoberto Aspra stated that the ruling is a victory for the defense of the state's assets.