SEVERAL MATTERS. General Law of Alternative Dispute Resolution Mechanisms January 29, 2024

On January 26th, 2024, the General Law of Alternative Dispute Resolution Mechanisms (Law) was published in the Official Gazette of the Federation, which purpose is to establish the bases, general principles, and distribution of powers in alternative dispute resolution mechanisms (ADRM) that will consist, but not limited to: (i) Negotiation; (ii) Collaborative Negotiation; (iii) Mediation; (iv) Conciliation; and (v) Arbitration.

Comments

We estimate that the most relevant aspects are the following:

  • The ADRM stated in the Law will be applicable to several matters, such as family law, civil law, commercial law, corporate law, criminal law, administrative law, tax law, social security law, industrial property law, etc.
  • The ADRM will be governed by multiple principles, such as: Good Faith, Confidentiality, Honesty, Impartiality, Neutrality, etc.
  • The ADRM National Council will be the governing body in matters of public policies regarding the ADRM.
  • There will also be an ADRM National Council exclusively on administrative law matters.
  • The aforementioned National Councils will be responsible for issuing the certificates to the Facilitating Individuals, whether public or private, whose main faculty will be to promote the communication and agreement for the resolution of disputes between the Parties through the ADRM.
  • The Federal Judiciary or the federal entities judicial power, as well as the Federal Court of Administrative Justice (FCAJ) and the Courts of Administrative Justice of the federal entities (CAJ), will have their own ADRM Public Centers to carry out the procedure and provision of ADRM services.
  • The Facilitating Individuals will have public faith for the conclusion of the Agreements signed by the Parties, as well as for issuing certified copies of said Agreements and their annexes.
  • Any person may request to access to the ADRM procedure verbally, in writing or online before the Public or Private ADRM Centers.
  • The processing of the ADRM may or may not derive from a jurisdictional procedure, so if it is the latter case, they may not exceed the period of 3 months, unless the Parties agree to extend the period.
  • In any jurisdictional procedure, the authority must inform the Parties of the possibility and right they have at any time, until before the resolution that concludes the procedure is issued, to access to the ADRM Public Center to resolve their dispute through the conclusion of an Agreement.
  • On the occasion of the ADRM procedure, the necessary sessions will be held with the presence of the Parties, with the purpose of reaching the conclusion of an Agreement, whether total or partial, or, if it is not reached, they will be left to except their rights to enforce them in the way and manner they deem appropriate.
  • From the registration of the Agreements signed by the Parties and subscribed by the Facilitating Individual in the corresponding Agreement System, these will have res judicata
  • In the case of Agreements concluded in administrative law matters, these will have res judicata effects once approved by the corresponding Magistrate of the FCAJ or CAJ concerned.

Both the Federal Congress and the Legislatures of the federal entities, no later than January 27th, 2025, must issue the corresponding regulatory updates for fulfill the Law.

Although the ADRM currently exists in Mexico City and the federal entities, such as the Mediation Agreement in family law, civil law, commercial law and criminal law, the Law will seek to unify the figure of the ADRM at the national level and expand it to other matters, such as administrative law. We consider that the ADRM in tax law will be independent of the figure of the Conclusive Agreement that is processed before the Taxpayer Ombudsman.

If you have any questions regarding the foregoing, please do not hesitate to contact us.

Mexico City, January 29th, 2024

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