Mexico Civil and Family Law Dispute Resolution Notary

Litigation & Dispute Resolution Laws and Regulations 2021 | Mexico

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Efficiency of process

Court procedures in United mexican states generally follow the same steps: (a) lawsuit; (b) reply to the lawsuit; (c) show menstruation; (d) allegations; and (e) last judgment.

The rules governing the court procedure are different depending on the state where the parties are litigating and the nature of the conflict (civil, criminal, labour).

United mexican states is a land that accepts and, to some extent, encourages alternative dispute resolution (ADR) procedures in lodge to convalesce the overwhelming number of cases that have to exist resolved past the courts.  Amidst such ADR procedures at that place is arbitration, mediation, and some other forms of conciliation during the proceedings.

Decisions in United mexican states are based on law and not on equity.  However, there are exceptions to this rule, and in such exceptions the conclusion will be based on general legal principles – if and just if at that place is no applicable law to solve the trouble at stake, or if the interpretation of the law would not solve the problem.  Also, if in that location is incertitude regarding the estimation of a contract, and such contract cannot be resolved according to the interpretation rules established in the law, or if such doubts chronicle to accidental clauses of the agreement, and the agreement is gratuitous, such doubts volition be resolved in favour of the least manual of rights and interests, while if the agreement is onerous, such doubts volition be resolved in favour of the major reciprocity of interests.  If doubts relate to the main object of the contract, so that the real intent of the parties cannot exist established, the understanding volition exist alleged zilch.

Courtroom procedures in United mexican states are efficient, both in time and in essence.  Litigation proceedings are not very lengthy, and courts follow the deadlines established by law and render their judgments accordingly.

Integrity of process

The judiciary in United mexican states is completely independent of any political or religious conventionalities, and its members are impartial when rendering their judgments.

Privilege and disclosure

As a general dominion, all documents may be considered privileged, understanding such concept in the sense that parties have no obligation to requite such documents to another party, unless they are requested by the authorisation to do so.

Even though parties take no obligation to open their files to other parties, this general dominion has an exception.  Such exception exists when one of the parties requests specific documents from the other.  The request has to be very clear, i.e. establishing date, sender, recipient, etc.

Therefore, if parties in litigation do non have certain documents in their possession (documents that are the footing for their claim and/or defense force), they can request a certified copy of such documents to the party that has them in its possession.  Once the request has been made, the requesting party can testify to the court that it has requested the documents but that they have not been delivered by the other party, and the court can order such party to give the certified copy requested.  In instance the other party does not want to give such documents, the court can give warning to the other party that if information technology does not produce the documents requested, the court will consider that the claims made by the requesting party in its lawsuit are truthful and valid.

In Mexico, full discovery is not permitted.

Prove

As mentioned, Mexico has an extremely formalistic approach to judicial proceedings.  Taking that into consideration, it is important to signal out that any kind of show is admitted as long as it complies with the post-obit requirements: (i) such evidence must non be offered after the fourth dimension established past the court; (ii) it must not be contrary to the police or morals; (three) it cannot be related to facts that have not been contested by the parties; (iv) information technology must not exist related to impossible events; (v) it must not exist prima facie unbelievable; and (half-dozen) it must be offered according to the formalities required past the law (establishing what is intended to be proven with such prove and why it is believed such evidence will prove so, inserting the proper noun and address of the witnesses and experts, and requesting the citation of the counterparty in gild to appear earlier the court in a hearing in order to reply the questions posed).

Some other very important rule with respect to prove is that in the lawsuit and in the answer to it, the parties have to attach all of the documents that they have in their possession related to such lawsuit and answer to it.  If the documents are not attached, they will not be accepted by the courtroom, unless such documents are those that are considered "supervening" documents.

In addition to the rule mentioned in the previous paragraph, all of the documents have to be offered during the fourth dimension allotted by the court for such purpose and the hearings must as well take place during the time period established past the courtroom.  Every bit a general rule in civil and commercial cases, such time menses is 10 days for offering and 30 days for the hearings and obtention of expert evidence.

Costs

In Mexico, costs are typically awarded against the losing party, but not in every instance.  The law clearly establishes when costs are awarded to the other party.  Costs are allocated in dissimilar ways depending on the land where litigation takes place.  In Mexico City, costs are awarded to the winning party if the counterparty acted in bad religion, falsely or without whatever basis for its claim.  The purpose of costs is to cover the legal costs that the other party has incurred because of the litigation.

Withal, these legal costs awarded are not based on the existent disbursement made by the winning party, but on what the law establishes.

Judges will, if possible, determine the amount of the costs awarded to the winning party; however, if it is not possible to laurels a specific amount, the parties will have to outset an ancillary proceeding in order to quantify the costs.

Costs will just be awarded to the parties if they prove that they were aided by an attorney.

In Mexico Urban center, costs are awarded on the following ground:

• If the amounts claimed are identified, first example costs will exist awarded every bit follows: (a) if the corporeality of the litigation is not college than 3,000 times the minimum daily wage in Mexico City, costs will be 10% of such corporeality; (b) if the amount of the litigation is between iii,000 and 6,000 times the minimum daily wage in Mexico City, costs will be 8% of such amount; and (c) if the amount of the litigation is higher than half dozen,000 times the minimum daily wage in United mexican states Metropolis, costs will be vi% of such corporeality.
• Second instance costs will be increased by 2% (i.e.: x% will be increased to 12%; 8% will be increased to 10%; and 6% will exist increased to eight%).
• If the amounts claimed are not identified, costs will be awarded co-ordinate to a nautical chart established in the Internal Law of the Superior Tribunal of Justice of Mexico Urban center.

Litigation funding

The agreement between clients and attorneys for their fees can be agreed very openly, without limitation, including contingency fees, third-party funders, and insurance.

Class actions

Class deportment are duly regulated in Mexico in the Code of Civil Procedure.

The main guidelines for grade actions are equally follows:

1. The competent courts to review class activeness claims are the federal courts.
2. Course activeness claims can only be brought with respect to relations of consumers of goods or services, private or public, and environmental.
3. The entities or persons that can bring a form activity are very express.
4. There are only 3 types of class action: "diffuse" class deportment; class actions "in the strict sense"; and class actions of an "individual homogeneous nature".  (i) Diffuse class deportment are indivisible and are brought to claim diffuse rights, and the holders of such rights are an undetermined collective with the purpose of claiming the repair of the damage caused to a group of persons.  (ii) Course actions in the strict sense are indivisible and are brought to claim rights and collective interests, and the holders of such rights are a determined or determinable commonage with the purpose of claiming the repair of the impairment caused to individuals within such a group.  (iii) Actions of an individual homogeneous nature are divisible and are brought to claim rights and individual interests that have a collective incidence, with the purpose of obtaining from a third political party forceful compliance with an agreement or its rescission.
5. Form actions can be of a declarative, constitutive or condemnatory nature.
6. In form actions, interim measures can be requested, and the judges have the dominance to outcome acting measures.

Acting relief

Acting remedies can be requested and granted past the court if there is a threat that: (a) the person against whom the lawsuit will be filed or has been filed volition hibernate or leave the identify where litigation is taking place; (b) the assets volition be hidden or deteriorate in such cases when an in rem activeness will exist brought; and (c) the assets will exist hidden or sold in such cases where a personal action will be brought, and those are the only assets of the debtor.

The only interim remedies bachelor are: (a) confinement; and (b) provisional seizure of avails.  In social club for the solitude to accept place, the political party requesting information technology should post a bond in order to guarantee possible damages and loss of profits that could be caused to the other party due to such gild.  The corporeality of the bond is established by the judge at his discretion.  In lodge for the provisional seizure of assets to take place, the party requesting information technology should express the value of the claim or of the affair that is claimed, and the judge will determine the amount of the seizure.  If the provisional seizure is non claimed based on an executive title, the plaintiff has to post a bail in order to guarantee the possible amercement and loss of profits that might exist caused.  If the defendant deposits the value or object claimed, or posts sufficient bond or proves that information technology has sufficient assets (real estate) to pay the amounts claimed, the guess will either deny the interim injunction requested, or leave without issue the interim injunction previously granted.  If the interim remedy is requested and granted before the litigation takes identify, the party that requested information technology has to file the lawsuit within the following 3 days if the litigation will accept place in the aforementioned jurisdiction; if it is in a different jurisdiction, the courtroom will extend such period of time according to the distance to the place in which the litigation volition take place (1 additional day for each 200 kilometres or fraction exceeding 100 kilometres).

Interim injunctions tin can exist obtained without prior notice to the defendant, only non on the same day they are requested.

Confinement is a mandatory acting injunction that compels a political party not to leave the place where the litigation is taking place without leaving a sufficiently instructed representative, and with sufficient funds, to be responsible for the outcome of the instance.

In Federal Ceremonious Procedures, the judge can grant all of the advisable injunctions in order to maintain the status quo.  These kinds of injunctions are granted without prior observe to the accused.

During the proceeding or earlier it, the judge can grant acting injunctions consisting of: (a) seizure of assets in order to guarantee the event of the example; and (b) deposit or seizure of things, books, or documents that are the subject matter of the litigation.  These interim injunctions can exist granted if the party that requests them guarantees the possible amercement and loss of profits that the defendant may suffer.

Enforcement of judgments/awards

The Federal Code of Civil Process establishes that foreign judgments tin be enforced in Mexico equally long as they comply with the following rules: (a) formalities related to messages rogatory were complied with; (b) they were not issued in an in rem activity; (c) the foreign judge had jurisdiction according to international rules consistent with those mentioned in Mexican police; (d) the defendant was notified or served personally; (eastward) such judgment cannot be overturned or modified by any means in the jurisdiction where information technology was issued; (f) the action brought in such jurisdiction is not pending, betwixt the aforementioned parties, earlier Mexican courts, and in which Mexican courts had heard starting time near such case; (g) the fulfilment of the obligation ordered is non reverse to Mexican public policy; and (h) the judgment fulfils the weather required to exist considered authentic (apostille).

Mexican courts tin can deny the execution of foreign judgments, even if they comply with all of the requirements mentioned above, if it tin can be proven that Mexican judgments are not enforced in the jurisdiction where the judgment was issued.

In lodge for a foreign judgment to exist executed, it has to be requested through letters rogatory, and such letters rogatory accept to comply with the following: (a) take an authentic copy of the judgment, laurels or judicial resolution; (b) have authentic copies proving that summons were served personally and that the judgment cannot be overturned or modified past any means; (c) must be translated into Castilian; and (d) the party that wishes to execute such judgment must mention an address where the homologation will take place.

The competent court to enforce a foreign judgment is the court of the domicile of the defendant, or where the accused has its assets.

Once the court receives the request for executing the foreign judgment, it will grant the defendant a menstruum of nine days in order to put up a defence or exercise their rights.  If they offer evidence, the court will set a engagement for a hearing.  Subsequently the hearing, the court will event its judgment.

Mexican courts are very open up to assisting foreign courts.  The Federal Code of Civil Procedure has a affiliate devoted to assisting strange courts, and it establishes that requests from foreign courts do not have to exist legalised if they are transmitted past official authorities, but they practise have to be translated into Spanish.

Mexican courts tin assistance foreign courts in whatever aspect, since the Federal Code of Ceremonious Procedure does not institute any prohibition on assistance.

Letters rogatory have to be delivered to the required authority either through the parties, judicially or by diplomatic or consular agents, or by the central authority of whatsoever of the countries involved in this procedure.

Once the letters rogatory are received by the court that will help the foreign court, such courtroom will assist the foreign court according to the applicative laws, but the foreign courtroom can request the local court to avert local formalities or to use specific formalities that differ from local formalities, if this is non harmful to Mexican public policy.

Mexico is a signatory to several conventions related to the execution and enforcement of judgments and awards, including the New York Convention.

Cross-border litigation

The Commercial Code establishes that letters rogatory received from abroad volition be carried out according to Mexican law, but local courts can simplify local formalities or act according to formalities other than Mexican, if this is requested by the court that problems the letters rogatory or by the interested party, as long every bit such lack of formalities or additional formalities are not contrary to public policy and constitutional rights.

It is easy to obtain orders in Mexico in back up of proceedings elsewhere, every bit long equally such orders are not opposite to Mexican public policy.

A very important limitation when obtaining show in United mexican states relates to documents; Mexican law conspicuously states that when documents have to be given to a foreign tribunal, the asking of such documents cannot exist generic, only rather very specific.

International arbitration

The following bodies are used to resolve large commercial disputes in Mexico:

1. The International Chamber of Commerce.
2. The American Arbitration Association.
3. The Arbitration Center of Mexico.

The legislation applicable to arbitration is the Commercial Code.

United mexican states has incorporated the UNCITRAL Model Law into the Commercial Code, with a few modifications.  For example, the Commercial Lawmaking has a full affiliate on costs and fees of arbitration tribunals.

The parties are free to concord on the procedural rules that the arbitrators will follow.  If they do non concur, the arbitrators will guide the arbitration in a fashion they deem appropriate (this includes determining the admissibility, appropriateness and value of the evidence).  However, the parties must be treated equally and be granted the total opportunity to express their rights (Commercial Code), and the mediation proceedings must reverberate this.

Local courts tin can intervene to assist arbitration proceedings.  The competent court is the approximate of beginning example (local or federal) of the place where the mediation takes place.  If the mediation takes place outside of Mexico, the competent courtroom for the recognition and execution of the judgment is i of the post-obit:

1. a federal approximate of first instance;
2. a local judge of kickoff case of the domicile of the party against whom the judgment is rendered; or
3. a judge where the avails are located.

If requested by one of the parties, local courts tin can adopt provisional interim measures, fifty-fifty if an mediation agreement exists and the arbitration proceedings have begun.  If the mediation tribunal or one of the parties (after obtaining approval from the arbitration tribunal) requests it, local courts can intervene to aid arbitration by taking or obtaining evidence.

Mediation proceedings and awards cannot be appealed before local courts, only they tin exist challenged.  The only challenge that Mexican police accepts in arbitration is the challenge against the laurels on the ground of nullity of the award.

After the mediation tribunal has issued the honour, the parties can try to nullify information technology.  The award may be nullified if:

1. Ane of the parties to the arbitration agreement was incapacitated.
2. The arbitration agreement is not valid under the law called by the parties or under Mexican police force.
3. 1 of the parties was not duly notified of the appointment of an arbitrator or of the mediation proceedings, or if for any other reason it was non able to exercise its rights.
4. The award refers to an issue outside the scope of the mediation agreement or makes decisions outside the terms of the arbitration.
5. The composition of the arbitration tribunal or the proceedings was not in line with the understanding of the parties.
6. The judge confirms that under Mexican law, the subject matter of the dispute cannot be subject to arbitration or that the award is contrary to public policy.

The party that claims nullity should file a writ earlier the court challenge such nullity, and a summary proceeding will exist initiated.  In such proceeding, the parties have the right to nowadays prove and prove the nullity or non of the accolade.  Furthermore, the defendant may counterclaim recognition and enforcement of the arbitral award.  The parties cannot entreatment against the decision issued by the trial court; the just existing avenue to endeavour to modify it is through Amparo proceedings (a remedy for the protection of constitutional rights in Mexico).

With respect to mediation awards, the parties cannot waive their rights to request the nullity of the proceeding or the Amparo proceedings.

Mediation and ADR

Over the terminal decade, Mexican courts have been vouching for the utilise of mediation to solve civil, commercial, family unit and criminal (damages) disputes, simply ADR simply applies if the parties agree.  Courts cannot compel the parties to apply ADR to solve disputes.

Mediation that has been supported by Mexican courts has its ain set of rules.

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Source: https://www.globallegalinsights.com/practice-areas/litigation-and-dispute-resolution-laws-and-regulations/mexico

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