MEXICO Law and Practice Contributed by: Fernando del Castillo Elorza, Sajid Arroyo, Andrea Hernández and Alexis Romero, Del Castillo & Castro Abogados
3. Arbitration 3.1 Prevalence
3.7 Regulation of Arbitration Title Four of the Mexican Commercial Code compre- hensively incorporates the UNCITRAL Model Law. This statute establishes a unified, modern regime gov- erning both domestic and cross-border proceedings. 3.8 Court Powers Domestic courts act as crucial supportive bodies by appointing adjudicators upon a party’s default and uti- lising coercive mechanisms to compel the production of evidence. Furthermore, they possess the statutory authority to grant interim preservation measures and enforce the tribunal’s final determinations. 3.9 Court Intervention Statutory provisions strictly circumscribe judicial oversight to expressly permitted scenarios. Courts may only rule on jurisdictional challenges, set aside an award, or grant ex parte interim relief prior to the tribunal’s constitution. 3.10 Relief Arbitral tribunals exercise extensive authority to award pecuniary damages, order specific performance and issue preventative injunctions. Crucially, however, compelling a non-compliant party to honour these decisions inevitably requires the coercive enforcement mechanisms of the domestic courts. Conciliation, mediation and extrajudicial procedures before certified facilitators represent the primary for- mal alternatives to standard litigation. Additionally, consumer and financial protection agencies admin- ister specialised conciliatory mechanisms for specific commercial disputes. 4.2 Requirements to Engage in ADR Out-of-court settlements fundamentally rely on volun- tary mutual consent. Furthermore, where commercial agreements incorporate multi-tier dispute resolution mechanisms or arbitration clauses, judges will strictly enforce such provisions by declining jurisdiction until the agreed procedures have been fully exhausted. 4. Other ADR Methods 4.1 ADR Procedures
Complex commercial and corporate disputes in Mex- ico are frequently resolved outside traditional courts through private tribunals. Parties heavily favour this mechanism for construction, energy and cross-border contracts due to its technical proficiency. 3.2 Restrictions on Use of Arbitration Matters concerning the civil status of individuals, where pecuniary rights are not the main issue, remain strictly within the exclusive remit of the courts. Crimi- nal matters and specific family law issues are equally non-arbitrable. 3.3 Advantages of Arbitration Procedural flexibility, the strict confidentiality of the proceedings, and the ability to appoint specialised adjudicators are highly valued. Furthermore, a final award is often secured more expeditiously than in domestic litigation. 3.4 Disadvantages of Arbitration Significant costs associated with institutional fees and adjudicators’ remuneration represent the prima- ry drawback. Moreover, coercive judicial intervention is inevitably required for the enforcement of interim Leading bodies such as the International Chamber of Commerce (ICC), the Arbitration Centre of Mexi- co (CAM) and the American Arbitration Association (AAA) are widely favoured for complex cross-border matters. Concurrently, the National Chamber of Com- merce (CANACO) administers a substantial volume of domestic commercial proceedings. 3.6 Length of Proceedings 12 to 18 months is the standard timeframe from the constitution of the tribunal to the rendering of the final award. However, highly complex infrastructural or energy disputes often necessitate an extended pro- cedural timetable. measures and final awards. 3.5 Arbitral Institutions
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