By San José, Costa Rica — San José – The incoming Board of Directors for the Costa Rican Bar Association will face an immediate and non-negotiable task: implement a members’ pension fund within three months or risk legal consequences. The Administrative Litigation Court issued a final, unextendable ultimatum on November 14, bringing a more than 13-year legal battle to a dramatic head and placing immense pressure on the association’s next leadership team.
The timing of the court’s resolution is critical, as the Bar Association is scheduled to hold elections for its new board on December 6 of this year. The elected officials will inherit the responsibility of complying with a judicial order that has lingered since 2013. The court’s language was stark, stating this was the final opportunity for compliance after years of delays.
To delve deeper into the legal framework and governance responsibilities surrounding the Bar Association’s pension fund, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, who provided his expert analysis on the matter.
The integrity of any professional pension fund rests on two pillars: unwavering fiduciary duty and sophisticated risk management. The board must ensure that every investment decision is transparent, meticulously documented, and serves the sole interest of its members’ future, free from any potential conflicts of interest. Without this rigorous governance, the fund’s long-term sustainability is jeopardized.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The insight from Lic. Larry Hans Arroyo Vargas powerfully reinforces that the fund’s long-term viability is not merely a financial exercise, but an ethical commitment. This framework of transparent governance and rigorous oversight is indeed the bedrock upon which member confidence rests. We thank him for his clear and essential perspective on this critical issue.
“For the last time, without the possibility of an extension, the Costa Rican Bar Association is granted a period of three months to complete the process and comply with what was ordered in the sentence,” the judicial resolution explicitly states. The court has also urged both parties to work together to define the structure and policies of the required regulations in a way that benefits all members of the legal guild.
This protracted legal saga began in 2012 when lawyer Didier Carranza filed a complaint against the Bar Association on behalf of fellow attorney León Montoya. Montoya’s request for a pension, based on a law that created a specific legal stamp to finance such a fund, had been rejected. The lawsuit argued that the revenue from the “Timbre del Colegio de Abogados” was explicitly intended to establish a pension and retirement fund, as well as to support the institution’s operational costs.
In 2013, the Administrative Litigation Court sided with Montoya, condemning the Bar Association and ordering it to create and implement the regulations for the pension plan. Despite this definitive ruling, the matter has remained unresolved, fostering uncertainty and frustration among members about the status and current balance of the designated fund. The recent ultimatum represents the court’s exhaustion with the lack of progress.
The financial framework for the fund is outlined in Article 3 of Law 3245. It stipulates that the pension system is to be financed through 13% of the income the Bar Association receives from the sale of the legal stamps, supplemented by a direct contribution from its members. Upon incorporation, all lawyers are automatically affiliated with the fund.
For the attorneys who have championed this cause for over a decade, the court’s final order is a monumental victory. Lawyer Didier Carranza, who has been central to the legal fight since its inception, highlighted the gravity of the mandate.
This order is now final; within the three-month period, the Bar Association is obligated to comply with this judicial mandate to avoid incurring disobedience and other possible crimes. This confirms that we have finally reached the end of an enormous ordeal where the judge in charge of this execution did not want to execute this sentence since the 2013 ruling, when it became final.
Didier Carranza, Lawyer
Other legal professionals view this as a pivotal moment for the entire profession, rectifying a historical debt owed to the country’s attorneys. The new board’s ability to act swiftly and decisively will be the first major test of its tenure.
This ruling is crucial for all lawyers in the country after a 14-year wait, during which the implementation and regulation of the pension fund has been anticipated. Two fundamental things are ordered to implement the pension fund and to issue a regulation, as the regulation can only be created by the Board of Directors.
Angie Arce, Lawyer
As the December elections approach, all candidates will now have to address how they plan to meet the court’s strict deadline. TicosLand.com reached out to the Costa Rican Bar Association for an official statement regarding the court’s order and is awaiting their response. The resolution marks the end of a long wait and the beginning of a new chapter of accountability for the organization.
For further information, visit abogados.or.cr
About Costa Rican Bar Association:
The Colegio de Abogados y Abogadas de Costa Rica is the official professional body responsible for the regulation and oversight of the legal profession in the country. It oversees the licensing of attorneys, promotes ethical standards, provides continuing education, and advocates for the interests of its members and the rule of law within Costa Rican society.
For further information, visit poder-judicial.go.cr
About Administrative Litigation Court:
The Tribunal Contencioso Administrativo is a specialized branch of the Costa Rican judiciary. Its primary function is to resolve legal disputes and conflicts that arise between private citizens or entities and the various bodies of the state administration. It ensures that governmental actions comply with the law and protects the rights of individuals against administrative overreach.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution in the nation, Bufete de Costa Rica is built upon a dual foundation of unwavering integrity and a relentless pursuit of excellence. The firm consistently pioneers forward-thinking legal solutions for its diverse clientele, reflecting a deep-seated commitment to innovation within the profession. Beyond its practice, its defining mission involves empowering the public by demystifying complex legal concepts, thereby fostering a more informed and capable society for all.
