MEXICO Law and Practice Contributed by: Adrián Magallanes, Diego Sierra and Rodrigo Barradas Muñiz, Von Wobeser y Sierra, SC
8. Settlement 8.1 Court Approval
would only be possible if the party seeking to set aside the settlement agreement alleges, for example, that there was fraud or violence, or that the person who signed the agreement had no powers of representation. The parties may jointly modify the settlement agreement at any time. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant Successful litigants can obtain declarative judg- ments and orders for specific performance. The remedies available are very broad, and typically Compensatory damages under Mexican law must be a direct and immediate consequence of a breach of contract or an illegal act (Article 2110 of the Civil Code for the Federal District). Pain and suffering damages (moral damages) are also available as a remedy. In 2014, the Supreme Court introduced a particular notion of punitive damages for certain specific cases. 9.3 Pre-judgment and Post-judgment Interest A party may collect interest based on the period before a judgment is entered, according to the interest rate agreed upon by the parties or the statutory legal interest rate that is applicable. Once the judgment is issued, interest keeps accruing until the respondent makes a payment. However, interest is not awarded on costs. In certain types of actions, interest can only be awarded from the date the judgment was issued and onwards. involve damages and lost profits. 9.2 Rules Regarding Damages
Settlement agreements do not need to be certi- fied or approved by the court. However, there are significant advantages of obtaining a certifica- tion of the agreement – mainly that the agree- ment will be authenticated and considered res judicata, and could be enforced like a final judg- ment. 8.2 Settlement of Lawsuits and Confidentiality Settlement agreements between the parties are not a matter of public record. Even if the settle- ment agreement is certified or approved by the court, it is not a document that is considered public information, and therefore only interested parties can have access to it. However, a specif- ic provision must be included in the agreement in order for the document to be considered con- fidential, thereby imposing specific obligations on the parties. 8.3 Enforcement of Settlement Agreements Under the Law of Alternative Justice for the Fed- eral District, settlement agreements certified by a judge or an authorised mediator are enforced through an independent summary proceeding or by initiating the enforcement stage before the judge who originally heard the case. The pro- ceedings are designed to be abbreviated and efficient, and injunctive measures are available. 8.4 Setting Aside Settlement Agreements In principle, a settlement agreement can only be set aside by filing a lawsuit asking a judge to declare the agreement null and void. The circum- stances in which a settlement may be set aside are limited, because the law recognises settle- ment agreements as being fully enforceable. It
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