MEXICO Law and Practice Contributed by: Luis Asali, Omar Colomé, Katia Hernández and Jesús Figueroa, Bufete Asali
Centre (CAM) and the Centre for Conciliation and Arbi- tration of CANACO provide structured procedures, accredited mediators and arbitrators, and clear rules for both mediation and arbitration. Although accessibility and resources vary regionally, Mexico offers robust institutional support for ADR, making it a credible and effective alternative to litiga- tion for both domestic and international parties.
cle 1457 of the Code of Commerce. A challenge may be admitted only when the party seeking annulment proves one or more of the following. • One of the parties to the arbitration agreement was under some incapacity, or the agreement itself is invalid under the law to which the parties have subjected it or, failing such indication, under Mexican law. • The party was not duly notified of the appointment of an arbitrator or of the arbitral proceedings, or was otherwise unable to exercise its rights. • The award deals with a dispute not contemplated by or beyond the terms of the arbitration agree- ment. However, if the provisions of the award that concern matters submitted to arbitration can be separated from those that do not, only the latter may be set aside. • The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the parties’ agreement, unless such agreement con- flicts with non-derogable provisions of the Code or, failing such agreement, was not in accordance with the Code itself. • The court finds that, under Mexican law, the sub- ject matter of the dispute is not capable of settle- ment by arbitration, or that the award is contrary to public policy ( orden público ). Mexican courts do not review the merits of arbitral awards. Annulment is granted only when one of these statutory grounds is proven, thereby preserving the finality, enforceability and integrity of arbitral decisions in Mexico. 13.4 Procedure for Enforcing Domestic and Foreign Arbitration Under Article 1461 of the Code of Commerce, an arbi- tral award – regardless of the country in which it was issued – is recognised as binding and, upon filing a written petition with the court, will be enforced through the Special Proceedings for Commercial Transactions and Arbitration ( Juicio Especial de Transacciones Comerciales y Arbitraje ). The party seeking to rely on an award or to request its enforcement must submit the original award duly authenticated or a certified copy, along with the origi-
13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration
Arbitration in Mexico is governed by the Code of Com- merce, which incorporates the UNCITRAL Model Law. Parties are free to determine procedural rules, the number of arbitrators and the arbitration venue. Both domestic and international arbitration agreements are recognised and generally upheld by Mexican courts. Arbitral awards are final, binding and enforceable, with judicial review limited to specific grounds such as incapacity, invalid agreements, due process viola- tions or conflicts with public policy. As a signatory to the 1958 New York Convention, Mexico recognises and enforces foreign arbitral awards under the same limited exceptions. Courts may assist arbitration by ordering interim measures or enforcing procedural agreements, but will not review the merits of the case. This framework makes arbitration a reliable and well-established alter- native to litigation in Mexico. 13.2 Subject Matters Not Referred to Arbitration Under Mexican law, certain disputes are considered non-arbitrable because they involve matters of public order or mandatory legal protections, such as labour rights or certain family matters. 13.3 Circumstances to Challenge an Arbitral Award In Mexico, parties may challenge an arbitral award before the competent courts only under specific and narrowly defined circumstances, as set forth in Arti-
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