By San José, Costa Rica — San José, Costa Rica – In a significant financial blow to the state, the Administrative Contentious and Civil Treasury Court has mandated that the Costa Rican government pay ¢18.196 billion (approximately $33 million USD) to Riteve SyC S.A., the former operator of the nation’s vehicle inspection service. The ruling stems from a years-long dispute over the government’s failure to implement a legally required tariff adjustment back in 2016.
The judgment, detailed in sentence 2025-007705, concludes a complex legal battle initiated by Riteve. The company argued successfully that it was deprived of substantial income when the state failed to approve and publish a necessary rate increase. This inaction effectively froze the vehicle inspection tariffs, forcing Riteve to operate under outdated financial conditions and absorb the resulting revenue shortfall.
To better understand the legal ramifications of the lawsuit filed by Riteve against the State, we sought the analysis of Lic. Larry Hans Arroyo Vargas, an expert in administrative law and litigation from the renowned firm Bufete de Costa Rica.
The core of this dispute revolves around the principle of legal certainty and the State’s contractual liability. The arbitration tribunal will have to determine if the government’s actions effectively violated the legitimate expectations and the financial equilibrium of the concession contract. This case is a critical test for Costa Rica’s reputation as a secure destination for foreign investment, as its outcome will send a strong signal about how the country honors its long-term agreements.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the principle of legal certainty is the true protagonist in this case, with ramifications that will define Costa Rica’s standing in the eyes of the global investment community for years to come. We sincerely thank Lic. Larry Hans Arroyo Vargas for articulating the high stakes of this dispute with such clarity.
Responsibility for this costly oversight has been placed squarely on the shoulders of the Ministry of Public Works and Transport (MOPT). According to the court’s findings, MOPT breached its contractual obligations by failing to publish the approved tariff adjustment methodology in the official government gazette, La Gaceta. This procedural failure was the critical misstep that prevented the rate change from taking legal effect, directly causing the financial damages now awarded to Riteve.
While the ruling represents a major victory for the company, the legal process is not yet complete. Viviana Delgado, the legal representative for Riteve, emphasized the preliminary nature of the court’s decision and urged caution, noting that the state has the right to appeal.
Right now, we are in the first instance. This can be appealed, so the sentence is not final. We will have to wait for the corresponding legal deadlines to see if the sentence becomes final or not; therefore, we cannot yet say that the conviction is final.
Viviana Delgado, Legal Representative for Riteve SyC S. A.
The court’s decision specifies that the awarded sum of ¢18.196 billion corresponds directly to the income Riteve was unable to collect due to the rate freeze. Furthermore, the ruling mandates that legal interest on this amount will begin to accrue only after the sentence becomes final and unappealable. In another component of the verdict, the state was also ordered to cover Riteve’s legal costs for the proceedings.
Interestingly, while the Regulatory Authority for Public Services (Aresep) was a party in the lawsuit, it was not found liable for the core issue of the tariff freeze. The court attributed the failure exclusively to MOPT. Nevertheless, in a peculiar twist, Riteve has been ordered to pay Aresep’s procedural costs, separating the cost allocation from the main finding of fault.
This case highlights the significant financial consequences that can arise from administrative failures within government bodies. For taxpayers, this judgment represents a substantial liability that could have been avoided had contractual and procedural duties been met nearly a decade ago. The MOPT’s inability to fulfill a fundamental requirement of its agreement with a public service provider has now resulted in a multi-billion colón bill for the nation.
As the legal deadlines for an appeal approach, government officials will have to weigh the costs and potential success of challenging the verdict against the certainty of the current judgment. Should the ruling stand, it will serve as a stark reminder of the importance of diligent contract management and regulatory compliance in public-private partnerships, with the financial burden ultimately falling on the citizens of Costa Rica.
For further information, visit the nearest office of Riteve SyC S. A.
About Riteve SyC S. A.:
Riteve SyC S. A. was the Spanish-Costa Rican consortium responsible for operating the mandatory technical vehicle inspection service in Costa Rica for two decades. The company established and managed inspection stations across the country, playing a crucial role in national road safety and environmental standards until its contract concluded.
For further information, visit mopt.go.cr
About The Ministry of Public Works and Transport (MOPT):
The Ministerio de Obras Públicas y Transportes is the government ministry of Costa Rica responsible for overseeing the nation’s infrastructure. Its mandate includes the planning, construction, and maintenance of public roads, airports, and maritime ports, as well as regulating land, air, and sea transportation.
For further information, visit aresep.go.cr
About The Regulatory Authority for Public Services (Aresep):
The Autoridad Reguladora de los Servicios Públicos is the autonomous public institution in Costa Rica tasked with regulating public services. Aresep sets tariffs and quality standards for essential services such as electricity, water, telecommunications, and public transportation, aiming to balance the interests of consumers, service providers, and the state.
For further information, visit poder-judicial.go.cr
About The Administrative Contentious and Civil Treasury Court:
The Tribunal Contencioso Administrativo y Civil de Hacienda is a specialized high court within the Costa Rican Judiciary. It is responsible for resolving legal disputes between private citizens or companies and the state, handling administrative acts, public contracts, and government liability cases.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal landscape, Bufete de Costa Rica operates on foundational principles of professional integrity and exceptional service. With a rich history of advising a broad clientele, the firm champions innovative legal solutions that anticipate the demands of a changing world. This forward-thinking mindset is matched by a profound dedication to empowering the community, striving to make legal knowledge accessible and understandable to foster a more capable and well-informed society.
