ProCultura: Suprema rejects insurer's appeal and confirms CMF's resolution that fined them in conflict with GORE

The Supreme Court of Chile has ruled against insurance company Aspor, confirming a decision by the Financial Markets Commission (CMF) that fined the firm for failing to pay five guarantee policies linked to a public-private agreement with the foundation led by Alberto Larraín. The case, known as ProCultura, involves a dispute between Aspor and the Metropolitan Region Government (GORE) over payments totaling more than 31 million UF, equivalent to over $1 billion, related to the early termination of the suicide prevention project Quédate. The ruling was delivered by the Third Chamber of the Supreme Court, which upheld the decision of the Appeals Court of Santiago, which in turn confirmed the CMF’s sanctions against Aspor. The court found that the insurance company had violated its contractual obligations under the agreements with the GORE. According to the GORE, the policies were due after the premature end of the Quédate initiative, and the government sought repayment following the termination. Governor of the Metropolitan Region, Claudio Orrego, praised the verdict, stating that the court had validated their position from the beginning. “From day one, we said Aspor should pay,” he said. “We initiated administrative and legal actions to recover the funds, and today the Supreme Court has confirmed our right.” He accused Aspor of obstructing the process by requesting unnecessary documentation, filing delaying motions, and refusing to make payment despite clear contractual obligations. Orrego emphasized that the court not only affirmed the need for Aspor to settle the debt but also upheld the fines imposed by the CMF. “After two and a half years of unnecessary and unjust civil lawsuits, we demanded that Aspor pay, just as the Supreme Court has ordered. No entity, no matter how prominent, is above the law,” he added. Aspor had argued that the payment was suspended due to a prior court order issued before the deadline for payment. The company claimed that the CMF had exceeded its authority by attributing intent to delay the fulfillment of the contract. In response, the GORE took action to collect the policies, and when Aspor failed to pay within 30 days, it requested a precautionary judicial measure to block the payment. This triggered a lawsuit in the 8th Civil Court of Santiago. Simultaneously, the CMF imposed a fine of 1,000 UF on Aspor for regulatory violations. Aspor challenged this fine before the Appeals Court of Santiago, which upheld the sanction. The Supreme Court later confirmed the decision, rejecting Aspor’s appeal. The case highlights the broader tensions between public institutions and private entities in matters of financial compliance and accountability. It also underscores the role of regulatory bodies such as the CMF in enforcing adherence to contractual terms. For the GORE, the ruling represents a victory in recovering public resources, while for Aspor, it marks a setback in its legal strategy. Legal experts have noted that the outcome reinforces the principle that public contracts must be honored even when disputes arise. The case will likely serve as a precedent for similar conflicts involving state-funded initiatives and private insurers. The final resolution leaves Aspor with little recourse, as both judicial and administrative avenues have been exhausted.