Issue 129–April 2015

April 7, 2015

The Advantages of Arbitration in Mexico

By Raymundo Vázquez Hernández

The rise of commercial arbitration as a means to resolve disputes in Mexico emerged in 1993 as a product of the amendment of the Mexican Commercial Code, which was adopted by the Model Law of the United Nations Commission on International Trade Law (UNCITRAL). From 1993 until the present, the practice of private arbitration in Mexico has become quite active and dynamic. It is increasingly becoming a preferred alternative for resolving conflicts between private parties, without the need to resort to a judicial proceeding in Mexican courts and tribunals. Some of the advantages which make commercial arbitration in Mexico a good option for resolving disputes between parties, as opposed to a court proceeding, include: 1. Judicial Saturation: Even though Article … read more

April 7, 2015

New Federal Regulations for Health and Safety in the Workplace

By Javier Zapata

On November 13, 2014, the Mexican Department of Labor and Social Security published, in the Official Journal of the Federation, new Federal Regulations on Safety and Health in the Workplace (the “Regulations”), which came into force on February 13, 2015. On the same date, the Federal Labor Regulations on Safety, Hygiene and the Work Environment were repealed, which had been in force since 1997. The purpose of the Regulations is to ensure the right to perform work activities under conditions that safeguard the life and health of workers. However, it should also be noted that the Regulations establish additional obligations, including fines, which were increased to the same degree that penalties were increased in the recent reform to the Federal Labor … read more

Recent Legal Opinion – Relative Nullity in Mexican Contract Law
By Adrian Salgado

Recently, the Second Circuit Court of Appeals of the Auxiliary Center of the Fifth Region approved non-binding legal opinion number (V Región) 2o. 7 C (10a), titled: "Relative Nullity of the Contract. A seller who learns that the purchaser did not have legal capacity to enter into a contract lacks standing to bring a claim if the seller accepted the execution of such and received a benefit, in accordance with the principle of contractual good faith.” In this legal opinion, the court found that a plaintiff who intends to file a claim alleging that the person with whom he/she entered into a contract lacked the legal capacity to do so in an attempt to obtain relative nullity of the respective … read more

Challenging and Suspending Acts and Decisions by Mexican Energy Regulatory Agencies
By José María Lujambio I.

Article 27 of the Coordinated Energy Regulatory Agencies Law (LORCME) establishes that the general rules, acts and omissions of the National Hydrocarbons Commission (CNH) and of the Energy Regulatory Commission (CRE) may be challenged only through means of an appeals process known as an indirect amparo lawsuit. However, Article 22 of such law establishes the authority of both agencies to hear appeals filed against their own acts and decisions. This incongruity reveals an instance of oversight by the Mexican executive branch and Congress, the solution to which will eventually have to be addressed by the courts. Before the LORCME took effect in August 2014, the CRE Law allowed parties to file an administrative motion for reconsideration against decisions of the … read more