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Litigation

Mexico

The new Amparo Law, which is now in force, aims to modernise amparo proceedings and includes several matters that were already recognised in case law, but not included in the previous law. Among the most relevant features of this new law, constitutional protection has been extended in some ways and limited in others.

Following a constitutional amendment in 2011, the new Amparo Law has been approved by both chambers of Congress. Although to a great extent the new law includes positive changes to amparo proceedings and aims to modernise this constitutional challenge procedure, some of the new provisions may be unfavourable to companies and financial institutions.

Amendments to the Mexican class action regime have recently been proposed. Several provisions of the Federal Code of Civil Procedure are intended to be modified to provide wider protection to consumers. However, it is important to consider the impact that the amendments might have on the defence of respondents and the level of exposure that companies will have if they are approved.

A recent Supreme Court decision has established that compensation for damages suffered by a person or company must be determined by the judge on a case-by-case basis. Consequently, indemnity capped by law is unconstitutional. The decision provides persuasive guidance on the court's views with respect to the importance of fully compensating for damages suffered.

Numerous pitfalls await foreign parties assuming that proceedings in Mexican courts unfold in the same way as in the courts of their own jurisdictions. Many foreign companies in Mexico may be unaware of how drastically Mexican litigation procedure can affect a dispute. Whether a company is bringing an action or has been sued in Mexico, it risks losing its case if it does not avoid certain traps for the unwary.

The First Chamber of the Supreme Court recently ruled on the constitutionality of one of the timeframes set by the Bankruptcy Law for filing a proof of claim in bankruptcy proceedings. In extending the timeframe, it may have provided a significant opportunity to complete the formal requirements for filing a proof of claim, given that Mexico's procedural rules are generally strict and often set the bar for compliance too high.

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Projects & Procurement

Mexico

After more than a year of legislative deliberations, Congress recently approved the new Federal Law Against Corruption in Public Procurement. According to the law, it is illegal to give or offer to give (either directly or through a third party) to a public official any type of bribe or gift for obtaining or retaining a privilege or business advantage in the area of public procurement.