Executive Summary:
- Senator Sánchez Cordero presented to the Senate a draft bill to issue the “General Law on Alternative Dispute Resolution Mechanisms.”
- This initiative aims to redirect the justice system in Mexico to give preference to MASC over traditional litigation.
- The objective is to provide prompt and effective solutions to disputes between individuals and companies, avoiding having to exhaust a judicial process, with the savings in time and economic resources that this represents for the parties.
Senator Olga Sánchez Cordero recently presented to the Senate a draft proposal for a Decree to issue the “General Law on Alternative Dispute Resolution Mechanisms.”
This initiative is based on the reforms to articles 17 and 73 of the Constitution that took place in 2008 and 2017, which seek to promote the resolution of disputes through alternative means.
In this regard, on February 5, 2017, a Decree was published amending the Federal Constitution to grant Congress the power to issue a General Law on Alternative Dispute Resolution Mechanisms (“ADR”). Despite various proposals for the implementation of a General Law on the matter, this has not been achieved to date.
In this sense, Senator Sánchez Cordero's initiative aims to materialize the constitutional reform of 2017, proposing a General Law that regulates the MASC. In this sense, the initiative seeks to redirect the justice system in Mexico to give preference to the MASC over traditional litigation.
The above proposes, for example, that before starting a trial, the interested party has the option of entering into a dialogue with their counterparty to reach an agreement that benefits all those involved and, thus, avoid having to process a "traditional" litigation before the Courts.
The aim of this is to provide prompt and effective solutions to disputes between individuals and companies, avoiding having to exhaust a judicial process, with the savings in time and economic resources that this represents for the parties.
The aforementioned draft law can be consulted here.
If you have any questions about the content of this article or would like to delve deeper into the implications of the General Law on Alternative Dispute Resolution Mechanisms initiative, please do not hesitate to contact our experts.
