A wave of business conflicts could be triggered in several supply chains: Santamarina + Steta
- It could saturate the courts again.
- Much will depend on the certainty or uncertainty generated by the federal government.
CDMX, January 14, 2022. Roberto Fernández del Valle M., expert partner in dispute resolution at the law firm Santamarina + Steta He predicted a possible wave of conflicts between companies in various supply chains, which would significantly increase the backlog of courts in various parts of the country. “It would mean a huge loss of time and resources for the Mexican productive society,” said.
The expert considered the above, despite the progress of many judges, secretaries of agreements and litigating operators who learned to use digital platforms and new technological tools, which were enabled to continue the administration of justice in the midst of the pandemic. “It has been a formidable effort, but it involved a learning curve and a delay, which resulted in a backlog of files that the courts have not yet resolved. This is what the end of 2021 could look like, along with very heavy workloads, trials and increasingly longer periods to issue sentences, which is also very costly for companies.”
And he stressed: "We must add that there is growing reluctance on the part of federal courts to accept bankruptcy proceedings, which are a key tool for recovering companies and preserving workforces. 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 conflict, for example, from an energy counter-reform that could break the agreements already established with investors in that sector, because “This would trigger an additional chain reaction. First with companies in the sector, and from there the impact would extend 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 address such risks strategically, with options to resolve disputes through alternative mechanisms to the courts.
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