MEXICO Law and Practice Contributed by: Adrián Magallanes, Diego Sierra and Rodrigo Barradas Muñiz, Von Wobeser y Sierra, SC
11.2 Factors Considered When Awarding Costs The main factors considered when awarding costs are whether: • the losing party provided any evidence; • the action or defence was frivolous or unwar- ranted; • there was any false evidence; and • the first and second instance judgments against the losing party were identical. 11.3 Interest Awarded on Costs Generally, once the judgment awarding costs is final, it accrues interest under the general 6% rate if it is under the Commerce Code (Article 362), or 9% if it is under the Civil Code (Article 2395). 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country Alternative dispute resolution is becoming more common in Mexico, especially because judg- es are supposed to encourage the parties to engage in some methods – mainly mediation. There have been substantial efforts to profes- sionalise the practice – for example, a few years ago, the Superior Court of Justice of Mexico City started to train and certify mediators. The most popular ADR method in Mexico is still arbitration, both domestic and international. 12.2 ADR Within the Legal System The Mexican legal system promotes ADR, which is expressly acknowledged by the Mexican Con- stitution as a valid method to resolve disputes (Article 17 of the Mexican Constitution). Many procedural laws establish a conciliation hearing
as part of the proceedings. For example, in com- mercial oral proceedings, the judge has express powers to mediate during the initial hearing (Arti- cle 1390 Bis 2 of the Commerce Code). Likewise, in civil proceedings, the judge and the concilia- tor have powers to mediate between the parties during the whole process (Article 55 of the Code of Civil Procedures for the Federal District). However, there are no sanctions for refusing ADR – costs are not even awarded against a party who refuses to participate in ADR. 12.3 ADR Institutions In Mexico, institutions offering and promoting ADR are well organised. In arbitration, the Arbi- tration Center of Mexico (CAM) and the Cham- ber of Commerce of Mexico City (CANACO) are among the most important domestic institutions. In mediation, the better organised institution is probably the Alternative Justice Centre, which is part of the structure of the Superior Court of Justice of Mexico City. 13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration The law governing commercial arbitration pro- ceedings and the enforcement of arbitral awards in Mexico is Book Five, Title Four of the Com- merce Code. This body of law incorporates the United Nations Commission on International Trade Law (UNCITRAL) Model Law on arbitra- tion (1985), with only minor modifications. It is a federal law that applies in the whole country, making the regulation of arbitration consistent everywhere in Mexico. Mexico is also a party to:
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