MEXICO Law and Practice Contributed by: Carlos de la Garza, Raúl Acosta and Enrique Tamez, De la Garza & Acosta Abogados, S.C.
arbitration clause contained in standard policy condi- tions as binding on an insured who elects to pursue judicial proceedings. Reinsurance The position is considerably different in reinsurance, where the parties are generally sophisticated commer- cial entities and arbitration clauses are common. Such agreements are ordinarily recognised under Mexico’s commercial arbitration regime, subject to the usual requirements concerning the existence and validity of the arbitration agreement. 3.2 Enforcement of Arbitral Awards Recognition and Enforcement Mexico generally adopts a pro-enforcement approach to commercial arbitral awards, whether domestic or foreign. Foreign commercial awards are not treated as foreign court judgments; rather, their recognition and enforcement are governed by the specialised arbitra- tion regime of the Commercial Code and, where appli- cable, the New York Convention. An award is recognised as binding irrespective of the country in which it was made, and enforcement is sought before the competent Mexican court with- out a review of the merits. The Supreme Court has also rejected an excessively formalistic approach to documentary requirements, holding that the statutory requirement to produce a “duly authenticated” original award or certified copy cannot operate as a dispro- portionate restriction on access to enforcement. Grounds for Refusal and Practical Barriers Recognition or enforcement may be refused only on limited grounds, including invalidity of the arbitra- tion agreement, lack of proper notice or opportunity to present a case, excess of the tribunal’s authority, procedural irregularities, or where the award has been set aside or suspended at the seat. Enforcement may also be refused where the dispute is not arbitrable under Mexican law or would contravene Mexican pub- lic policy. Practical difficulties may arise from parallel annulment proceedings, public-policy or arbitrability objections, service and translation requirements, locating assets and subsequent constitutional challenges. In insur-
ance matters, particularly direct insurance, disputes concerning the validity or enforceability of the underly- ing arbitration agreement may constitute an additional threshold issue. 3.3 Practical Use of Arbitration in Insurance Matters Use in Insurance and Reinsurance Arbitration is not commonly used to resolve stand- ard direct insurance disputes in Mexico, which are predominantly heard by commercial courts, often fol- lowing a complaint or conciliation procedure before CONDUSEF. Mexican regulation does, however, con- template specific voluntary arbitration mechanisms, including the insured’s option to submit disputes con- cerning pre-existing conditions in medical expenses, personal accident and health insurance to independ- ent medical arbitration. The position is significantly different in reinsurance. Arbitration is widely used in disputes between insur- ers and reinsurers, where the parties are sophisticated commercial entities and contracts frequently contain Privacy and confidentiality are important practical advantages of arbitration, particularly in reinsurance disputes involving commercially sensitive informa- tion. Confidentiality will generally depend on the par- ties’ agreement and the applicable institutional or procedural rules, and may be reduced where judicial proceedings are required to challenge or enforce an award. Arbitral awards are not subject to an appeal on the merits. Under Article 1457 of the Commercial Code, an award may only be challenged through an action for annulment on limited grounds, including invalidity of the arbitration agreement, procedural due-process violations, excess of jurisdiction, non-arbitrability and public policy. Judicial decisions concerning annul- ment or enforcement may subsequently be subject to constitutional amparo review. negotiated arbitration clauses. Confidentiality and Challenges
180 I NSURANCE L I T IGATI O N 2026
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