A Wave Of Business Conflicts Can Be Unleashed In Several Supply Chains: Santamarina + Steta

• It can saturate courts again.
• Much will depend on the certainty or uncertainty generated by the federal government.

Mexico City, January 14, 2022.. Roberto Fernández del Valle M., an expert partner in dispute resolution at the legal firm Santamarina + Steta , predicted a possible wave of conflicts between companies in various supply chains, which would significantly increase the backlog of the courts. in various parts of the country. “It would mean a great waste of time and resources for the productive Mexican society,” he said.

The expert considered the above, despite the advances of many judges, agreement secretaries, and litigation operators who learned to use digital platforms and new technological tools, which were enabled to continue the administration of justice amid the pandemic. “It has been a formidable effort, but it implied a learning curve and lag, which resulted in an accumulation of files that the courts have not yet resolved. This is how the end of 2021 could look, along with very weighty workloads, trials, and increasingly long periods to issue sentences, which is also very costly for companies.”

And he stressed: “We must add that the reluctance of federal courts to admit commercial bankruptcies is growing, which are a key tool for the recovery of companies and conservation of work templates. The creation of specialized courts is truly urgent.”

The specialist explained that the perspective to be observed for 2022 will depend on whether or not the federal government increases the climate of conflicts, for example, from an energy counter-reform that could break the agreements already signed with investors in the said sector, because “There would trigger an additional chain reaction. First, with companies in the industry and from there, the impact would spread to third parties and countless collateral supply chains in many other branches of national economic activity”.

Roberto Fernández del Valle recommended that the Mexican productive sector be prepared for a wave of business disputes, review their contracts and verify that they have clauses that contemplate compliance risks and design models to face such risks strategically, with options to resolve conflicts through mechanisms alternatives to the courts.

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