Arbitration is a Good Option in Mexico
by Don D. Nelson, Attorney, CPA, International Tax Expert
Mexico has excellent arbitration laws. If you live and work in Mexico, you should consider putting an arbitration
clause in your next contract or agreement. Such a clause in the event of a dispute may save you untold amounts
of legal fees and time. It is a fact that in many parts of Mexico the courts are so backlogged that can take 5 to 18
years to get a decision and during the entire period attorneys are charging additional fees.
> If you have an arbitration clause in your agreement you can usually get a decision within 9 months to a year and have that arbitration decision entered with the court as a judgment thereafter. It is also possible to remove legal disputes from the Mexican Courts and have them resolved with arbitration if both parties agree. All parties will benefit agree due to the much quicker decision and due to the knowledge and experience of the chosen arbitrator. Keep in mind also the cost savings. You can still be represented by an attorney if you chose.
> When parties arbitrate they can pick the arbitrator with experience in the particular area of law governing the dispute. Often when disputes are litigated in Court, the judge has little or no background in the governing law and therefore the final decision can be arbitrary and not predictable.
> Arbitration decisions in most situations cannot be appealed. But if you have choose a knowledgeable arbitrator (1 or 3 arbitrators can be used), and it saves you waiting 5 to10 or more years for a decision, that disadvantage may be worth ignoring
> In lieu of arbitration of disputes, consider mediation. When parties mediate a neutral mediator with experience in the applicable laws works with the two opposing parties to help them reach a mutually satisfactory resolution. Statistics show that mediation has a 30 to 50 percent chance of success and it is significantly less expensive than arbitration or litigation in Court.
> Want to know more about Arbitration or Mediation in Mexico? Want the proper provisions included in your legal agreements and wish to know how to arbitrate your legal dispute in Mexico? To learn on how to use arbitration in your legal disputes in Baja Sur email us at firstname.lastname@example.org.
Don D. Nelson, Attorney at Law, CPA.