MEXICO Trends and Developments Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta
Navigating the Effective Enforcement of Judgments Amid Mexico’s Institutional and Procedural Landscape The enforcement of judgments (or arbitral awards) related to assets located in Mexican territory is crucial for individuals conducting business with companies based in Mexico. This article outlines the fundamental and practical legal aspects necessary to achieve the effective enforcement of a foreign judgment or arbitral award in Mexico, as well as some recent trends and developments in this area. Enforcement of state court judgments and arbitral awards in Mexico Local judgments and non-commercial arbitral awards For judgments issued within a judicial process in Mex - ico, once all ordinary means of defence (eg, an appeal) and extraordinary means of defence (eg, amparo pro - ceedings) have been exhausted (or earlier if the proce - dure allows), the judgment may proceed to execution. The execution typically begins with the victorious par - ty’s request for the court of first instance to require the condemned party to voluntarily comply with the judg - ment within a specified term. Upon demanding vol - untary compliance, the judge warns the condemned party that failure to comply within the granted term will result in compulsory enforcement. For judgments ordering the payment of liquidated amounts, if no assets have been previously seized, the debtor’s assets will be seized and subsequently sold through judicial proceedings, applying the pro - ceeds to the creditor’s claim. If the judgment does not specify a liquidated amount, it must be liquidated before enforcement can proceed. Foreign judgments and non-commercial arbitral awards The enforcement of foreign judgments and awards is an extraordinary matter of which few courts have experience. Therefore, when seeking to enforce a for - eign judgment or award in Mexico, it is advisable to contact a local firm experienced in such procedures. The enforcement of foreign judgments and non- commercial arbitral awards is governed by the Fed -
eral Code of Civil Procedure – applicable throughout the country – and is subject to certain requirements, including: • the rogatory letter addressed to the court must meet all validity requirements; and • essential formalities of the process as outlined in Mexican law and the Mexican Constitution must be observed, such as: (a) notification of the lawsuit to the defendant in order that they can exercise their defence; (b) the judgment must not contravene Mexican public policy; and (c) the judgment must not result from the exercise of a real action – ie, an action that pertains to rights related to real estate (immovable prop - erty) located in Mexico – as these must be pursued before national courts. To obtain enforcement of a foreign judgment, the request must be accompanied by: • an authenticated copy of the judgment; • proof of compliance with essential formalities of the process; • Spanish translations of supporting documents; and • a process address (provided by the applicant) where the judgment will be enforced. Commercial arbitral awards i) Local arbitral awards Regarding the enforcement of commercial arbitral awards, Mexico allows both institutional and ad hoc arbitration proceedings. Institutions such as the Arbi - tration Center of Mexico ( Centro de Arbitraje de Méxi- co , or CAM), the International Chamber of Commerce Mexico (the “ICC Mexico”), and the Mediation and Arbitration Center of the National Chamber of Com - merce (CANACO) operate in Mexico, offering legal certainty to those opting for their rules in case of a dispute. As with judgments issued by judicial courts, final com - mercial arbitral awards in Mexico have res judicata effect. However, judicial assistance is required for their enforcement, following the procedure outlined in the Commercial Code.
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