MEXICO Law and Practice Contributed by: Luis Asali, Omar Colomé, Katia Hernández and Jesús Figueroa, Bufete Asali
3. Initiating a Lawsuit 3.1 Rules on Pre-Action Conduct
2.5 Types of Costs Considered Under Third- Party Funding A third-party funder may agree to finance a variety of litigation or arbitration-related costs, depending on the terms of the funding arrangement and the risk assessment of the case. These expenses can include: • attorneys’ fees and related legal expenses; • expert witness and evidentiary costs; • translation, filing and procedural fees; and • in certain situations, adverse costs or enforcement- related expenses. The scope of coverage is determined on a case-by- case basis, reflecting the value, complexity and risk profile of the dispute. 2.6 Contingency Fees In Mexico, lawyers can enter into contingency fee agreements, which are especially prevalent in civil, commercial and tort cases. Under these arrange- ments, the lawyer’s compensation depends on the success of the case, usually calculated as a percent- age of the amount in dispute. There is no statutory cap or prohibition on such agree- ments. They are governed primarily by the principle of freedom of contract, allowing attorneys and clients to negotiate terms that are mutually acceptable, as long as they comply with general legal and ethical standards. 2.7 Time Limit for Obtaining Third-Party Funding In Mexico, there are no formal deadlines within the litigation process for securing third-party funding. Nonetheless, in practice, parties typically seek fund- ing at the outset or early stages of a case. This timing gives potential funders sufficient opportunity to evalu- ate the merits of the claim, estimate costs and assess enforceability, ensuring that financing is available when it is most needed to advance the proceedings.
In Mexico, civil and commercial litigation does not require any pre-action procedures. Parties can typi- cally initiate proceedings directly before the compe- tent court without first engaging in negotiations, send- ing formal notices or attempting mediation, unless a specific law or contractual clause dictates otherwise. However, Mexican law regulates alternative dispute resolution mechanisms, which are voluntarily appli- cable to all civil and commercial proceedings. Agree- ments reached by the parties to a dispute through such mechanisms may acquire binding force through a judicial declaration. 3.2 Statutes of Limitations In Mexico, statutes of limitations for civil claims are established under substantive law, primarily the Fed- eral Civil Code and local civil codes. In accordance with Article 1159 of the Federal Civil Code, the general limitation period for civil actions is ten years, with cer- tain claims being subject to shorter periods. Approxi- mately the same time limits apply under commercial law. Limitation periods can be interrupted by events such as filing a lawsuit or acknowledgment of the debt, and they may be suspended in specific circumstances, such as when force majeure prevents action. Courts do not enforce limitation periods automatically: the defendant must raise the limitation defence for it to apply. 3.3 Jurisdictional Requirements for a Defendant To be sued in a proceeding, it is sufficient for the claimant to designate a person as the defendant. This compels that person to appear in court and present a defence. However, the defendant’s standing may later be reviewed, and the defendant may recover court costs from the claimant if the court determines that they should not have been brought into the proceed- ings.
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