The President of Costa Rica and a deputy reach an out-of-court settlement, preventing a civil lawsuit linked to campaign financing.
President Rodrigo Chaves of
Costa Rica and deputy Pilar Cisneros have evaded a civil trial concerning a campaign financing dispute after reaching an out-of-court settlement.
The advertising agency Madison Revolution S.A. withdrew its civil lawsuit, which claimed a payment of $113,495 (approximately 57 million Costa Rican colones) for promotional work conducted during the lead-up to the 2022 national elections.
The trial was scheduled to commence on March 18 in the First Civil Court of the First Judicial Circuit in San José.
David Dumani, the lawyer representing Madison Revolution, confirmed the withdrawal of the lawsuit on March 17, stating that the decision stemmed from an internal resolution within the agency.
Dumani indicated that the agency sought a conversation with the representatives of the other parties involved to explore reaching an agreement.
Negotiations started the week before, resulting in a mutual withdrawal of the lawsuit except for the Partido Progreso Social Democrático (PPSD), which was also implicated in the case.
When asked whether a payment facilitated the settlement, Dumani refrained from disclosing specific details, citing a lack of authorization from his clients or the opposing party.
Pilar Cisneros claimed that the advertising agency's retraction was due to the absence of evidence against her or President Chaves.
In a video shared via WhatsApp, she remarked that the agency had acknowledged it would lose the trial.
She asserted that both she and President Chaves emerged from the situation with their reputations intact.
According to a court resolution dated March 14, the dismissal of the case was agreed upon mutually between the parties involved, except for the PPSD.
The dispute originates from February 2022 when Chaves was still a presidential candidate with the PPSD.
Alongside Chaves and Cisneros, the lawsuit included businessman Jack Loeb, a significant financier for Chaves, the PPSD, and ATA Trust Company, which managed financial operations for campaign expenditures.
Madison Revolution claimed that it had not been compensated for services rendered, which had been approved and utilized by both the party and the candidates.
The agency argued that both Chaves and Cisneros played active roles in the procurement process, particularly Cisneros, who was involved in the management and approval of proposals.
The agency had produced campaign advertisements for Chaves, which included recordings at the National Stadium broadcast during key football matches in September 2021. It also managed payments for makeup artists and catering during production sessions.
Moreover, Madison Revolution created billboards, photo sessions with Chaves, Cisneros, and other candidates, and managed social media advertising, notably on platforms like
Facebook and Google.
This included campaigns featuring political figures such as President Carlos Alvarado and PLN candidate José María Figueres.