MEXICO Law and Practice Contributed by: Luis Asali, Omar Colomé, Katia Hernández and Jesús Figueroa, Bufete Asali
8.3 Enforcement of Settlement Agreements In accordance with Article 974 of the National Code of Civil and Family Procedure, settlement agreements that are formally recorded with a court are enforceable as if they were a final judgment. Possible enforcement measures include: • seizure of bank accounts; • seizure and sale of assets; and • orders for specific performance, depending on the subject matter of the settlement. 8.4 Setting Aside Settlement Agreements Under the Federal Civil Code, settlement agreements may only be set aside or challenged in limited circum- stances, including: • if the agreement is based on a null or void title, unless the parties have expressly agreed to address the nullity; • if the agreement involves rights that cannot legally be waived; • if it is based on documents that are later declared false by a final judicial decision; • where new documents or titles are discovered, provided that bad faith is involved; and • if the settlement concerns a matter that has already been decided by a final and binding court judg- ment, which was disregarded by the parties. These provisions reflect the principle that settle- ment agreements are generally final and binding, and may only be invalidated under specific and narrowly defined conditions, ensuring legal certainty and the stability of resolved disputes. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant At the full trial stage in Mexico, a successful litigant may obtain several forms of relief depending on the nature of the claim, as follows. • Monetary damages ( indemnización ): compensation for actual losses, which may include both mate- rial damages and, in certain cases, moral (non-
de acuerdos ), who ensure that all formalities are prop- erly observed and recorded. 7.8 General Timeframes for Proceedings For commercial disputes, the duration of proceedings in Mexico varies significantly depending on the type of procedure, the complexity of the case, the number of parties involved and the court’s workload. Timelines are therefore assessed on a case-by-case basis. Strict adherence to procedural deadlines and effective case management are essential to avoid unnecessary delays, as Mexican courts follow highly formalistic procedures that can substantially affect the overall duration of a case. A commercial proceeding before a lower court may take between six and 12 months, although complex matters often extend beyond that period. The time required for appellate review depends on the instance of appeal. On average, a single appellate instance takes around six months. Oral proceedings generally allow only one level of appeal, whereas written pro- ceedings permit two, which can extend the overall duration of the case to approximately one year. Court approval is generally required for settlements that the parties wish to formalise with judicial effect and that will acquire the force of res judicata. The judge reviews the agreement to ensure that it is not contrary to applicable law or public policy, and wheth- er it requires the parties to ratify their consent in court. Once approved, the settlement is recorded in the court file and becomes enforceable as if it were a final judgment. Without judicial approval, the agreement remains a private contract and cannot be directly enforced through the courts. 8.2 Settlement of Lawsuits and Confidentiality Settlement agreements typically remain confidential. 8. Settlement 8.1 Court Approval
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