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Chile – Sun Dreams’ compensation claim rejected by court

By - 9 March 2020

Sun Dreams has suffered another setback with the Court of Appeals of Valdivia rejecting an appeal filed by the Chilean-South African firm for the damages suffered by the hotel casino in the city of Valdivia, during clashes between protesters and police.

The casino and hotel was at the epicentre of clashes during the social protests in Chile late last year. In the brief, the firm argued that the lack of police protection had led to losses of 1 billion Chilean pesos (around US$1.3m), in damages to infrastructure as well as losses for the days it was forced to close.
However Sun Dreams can still take the case to the Supreme Court.

In February damages worth millions experienced during the social unrest in Chile caused Sun Dreams to file a protection claim before the Court of Appeals of Valdivia. The claim accuses the State of having “failed to guarantee public order and internal public security, which constitutes an arbitrary and illegal violation of constitutional guarantees.”

The operator indicated in the judicial presentation that the protesters looted and even attempted to set fire to some areas of the Hotel Sun Dreams Valdivia.
While the social protest in Chile reached its height in October 2019, Sun Dreams reported that it lost $3.5m Chilean pesos in Valdivia, in just two days of protests at the end of January as well.

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