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Alternative Dispute Resolution (ADR) General Law

Executive Summary:

  • Senator Sanchez Cordero presented before the Senate an initiative of a draft Decree that enacts the "General Law of Alternative Dispute Resolution Mechanisms."
  • Such an initiative intends to redirect the justice system in Mexico to give preference to ADR over traditional litigation.
  • The objective is to provide prompt and effective solutions to disputes between individuals and companies, avoiding the need to exhaust a judicial process, with the savings in time and economic resources that this represents for the parties.

Senator Olga Sanchez Cordero recently presented before the Senate an initiative of a draft Decree that enacts the "General Law of Alternative Dispute Resolution Mechanisms".

Such initiative has as precedent the reforms to Articles 17 and 73 of the Constitution that took place in 2008 and 2017, which seek to favor the resolution of disputes through alternative means. 

In this regard, on February 5, 2017, a Decree was published amending the Federal Constitution to provide Congress with powers to issue a General Law on Alternative Dispute Resolution Mechanisms ("ADR"). Despite several proposals for the General Law implementation on the matter, to date, this has not been achieved.

In that sense, Senator Sanchez Cordero's initiative intends to materialize the constitutional reform of 2017, proposing a General Law that regulates ADR. In that sense, the initiative plans to redirect the system of administration of justice in Mexico to give preference to ADR over traditional litigation.

For example, before initiating a lawsuit, the interested party will have the option of entering into a dialogue with its counterparty to reach an agreement that benefits all parties involved and, thus, avoid going through "traditional" litigation before the Courts. 

The objective is to provide prompt and effective solutions to disputes between individuals and companies, avoiding the need to exhaust a judicial process, with the savings in time and economic resources that this represents for the parties.

The aforementioned bill can be consulted here.

If you have any doubts about the above or wish to learn more about the implications of the initiative of the General Law of Alternative Dispute Resolution Mechanisms, please do not hesitate to contact our experts:

Authors

Carlos Brehm
Partner
+52 81 8133 6021
cbrehm@s-s.mx

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