MEXICO Law and Practice Contributed by: Luis Álvarez Cervantes, Adolfo Athié Cervantes, Alejandro Barrera, Jesús Colunga, Eduardo Kleinberg, Juan José López de Silanes, Carlos Martínez-Betanzos and Amílcar Peredo, Basham, Ringe y Correa S.C.
Basham Ringe y Correa, SC Paseo de los Tamarindos No 100, Piso 5 Col. Bosques de las Lomas Cuajimalpa de Morelos C.P. 05120 México City Mexico
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1. Legal System 1.1 Legal System and Judicial Order
The Mexican judicial branch consists of a hierarchical structure of state and federal courts, which have their own jurisdiction and responsibilities. The highest court in the Mexican judicial branch is the Supreme Court of Justice of the Nation, which has an important role in interpreting the Mexican Constitution, as well as hear - ing significant cases including local and federal laws, regardless if they concern constitutional issues or not. On the one hand, the federal courts include district courts, collegiate circuit courts and specialised courts. These courts are responsible for adjudication cases that are related to federal matters, they manage cases that involve violations of federal laws, administrative disputes and issues between individuals, states or individuals and the federal government. On the other hand, state courts are responsible for enforcing laws that are reserved to the states by the Constitution, such as civil, criminal and administrative laws that fall under the state’s jurisdiction. Although the organisation of state courts can vary depending on the state, they are usually organised by municipal courts, trial courts and appellate courts. 2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments The regulatory framework for foreign investment in Mexico is regulated by the Foreign Investment Law (FIL) and its regulations, which impose some restric - tions on foreign investment in Mexico, which, while
The Mexican legal environment operates under a civil law system; where the law follows codified rules cre - ated and inspired by Roman law, the napoleon code system and finally Anglo-Saxon law. Compared to other systems, such as common law, where precedents are fundamental, Mexico’s legal system is mostly based on codes, laws and regula - tions that guide the behaviour of individuals and insti - tutions. The Mexican legal system is strongly based on several core principles that support the application and interpretation of codes and laws; and jurispru - dence comprised of decisions issued by authorities who determine the application and interpretation of principles through rulings. Even though the Mexi - can system is based on codes, principles and juris - prudence, it also relies on a system of precedents. Contrary to the precedent system used in common law, legal precedents in Mexico are used by judges to strengthen criteria rather than to reapply decisions used in previous binding case law. Despite the fact that most courts have their own criteria for ruling, precedents are used to guide the courts in a certain direction on the ruling based on how other courts have ruled in similar matters. Unfortunately, this does not mean that judges will or are forced to rule the same way as in previous cases, rather that they can be per - suaded to consider previous criteria that should be applied directly, by analogy or by major reasoning.
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