MEXICO Law and Practice Contributed by: Luis Asali, Omar Colomé, Katia Hernández and Jesús Figueroa, Bufete Asali
11.3 Interest Awarded on Costs One significant limitation of the costs liquidation pro- cedure in Mexico is that interest cannot be claimed on a costs award. Moreover, the procedure itself does not allow for a new or additional award of costs. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country In Mexico, ADR is widely acknowledged as an effec- tive and efficient means of resolving disputes while reducing court congestion and preserving relation- ships. The most commonly used ADR methods are mediation, arbitration and conciliation. • Mediation is frequently employed in civil, com- mercial and family disputes, with courts and specialised centres actively encouraging parties to attempt it before proceeding to litigation. • Arbitration is particularly common in commercial and investment matters, both domestic and inter- national. • Conciliation is commonly used in labour disputes and consumer claims, sometimes facilitated by government or professional bodies. ADR in Mexico is generally viewed as faster, more flexible and less adversarial than formal litigation. While the degree of adoption varies across sectors and regions, it has gained significant prominence, especially in commercial and cross-border contexts. 12.2 ADR Within the Legal System The Mexican legal system actively promotes ADR by integrating it into court procedures while maintaining voluntary participation. Courts frequently encour- age mediation or conciliation at the outset or during litigation, to facilitate early settlement. While ADR is voluntary, arbitration and mediation agreements are binding, and awards are enforceable under domestic law and international treaties. 12.3 ADR Institutions ADR institutions in Mexico are generally well organ- ised. Leading bodies such as the International Cham- ber of Commerce (ICC México), Mexican Arbitration
In commercial matters, the rules of the state where the dispute had site apply subsidiarily. In Mexico City, the applicable law is the Seventh Title, Chapter I of the Organic Law of the Judiciary of Mexico City. These rules distinguish between cases of determined mon- etary value ( cuantía determinada ) and undetermined monetary value ( cuantía indeterminada ), as follows. • Determined value cases – at first instance, the percentage of costs depends on the amount in dis- pute, although a general rate of 6% applies under Article 144, Section C. At second instance, this rate is increased by 2%. • Undetermined value cases – Article 145 establishes various rules, depending on the type of procedural actions or motions undertaken during the proceed- ings, taking into account the volume of the writs and the case file. This is also applicable for civil disputes. 11.2 Factors Considered When Awarding Costs Articles 1084 and 1085 of the Code of Commerce establish that Mexican courts consider several fac- tors when awarding costs, including: • acting in bad faith in litigation – ie, initiating legal action without just cause or based on false docu- ments or testimony; • being unsuccessful in an enforcement proceeding or commencing such a proceeding without having obtained a favourable judgment; and • persisting in claims or defences that have already been rejected by two consistent final judgments. These rules reflect both subjective and objective sys- tems. The subjective system considers the party’s bad faith or reckless behaviour, while the objective system imposes costs automatically in certain situa- tions, such as losing in enforcement proceedings or after two consistent final judgments. When costs are awarded, they are regulated in favour of the prevailing party, covering both the substantive and procedural stages where applicable.
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