1 Litigation – Preliminaries
1.1 What type of legal system does your jurisdiction have? Are there any rules that govern civil procedure in your jurisdiction?
The Mexican legal system is governed by civil law. The Mexican Constitution establishes that matters not expressly designated to the Federal Government shall fall under the competence of each Mexican state, including civil matters. Consequently, each Mexican state has its own local Code of Civil Procedure.
There is a Federal Code of Civil Procedures, which may be applicable throughout the country, depending on the case. Such Code may also be applied on a supplementary basis whenever the local codes do not regulate a specific situation.
On April 24, 2023, the Mexican Senate approved the National Code of Civil and Family Procedure. This new Code will be implemented gradually, requiring both the Federal and Local Governments to adopt it no later than April 1, 2027. This will replace the previous Federal and Local Codes, paving the way for the new Code to take effect, generating certainty for the governed, since there will no longer be disparity in the terms and procedural rules stated in each Code.
In addition, it regulates in depth the possibility of filing and prosecuting any action electronically, which will facilitate access to justice throughout Mexico.
It is important to point out that civil law under prosecution, at the time the National Code comes into effect, will be ruled according to the laws and regulations that were applicable when the case was initiated, unless both parties agree to apply the new Law to their case.
1.2 How is the civil court system in your jurisdiction structured? What are the various levels of appeal and are there any specialist courts?
The Civil Court system in Mexico mainly consists of three levels: Courts of First Instance; Courts of Appeal; and Collegiate Federal Courts. The Courts of First Instance and Appeal may be federal or local, depending on the decision of the plaintiff or if the dispute arises from an agreement in which the parties have agreed to submit it to the jurisdiction of a specific court. However, the three-level structure remains the same.
Courts of First Instance
The local Civil Courts or Federal District Courts are the lowest Mexican Courts to conduct civil proceedings. The decisions of these Courts can be challenged at the Courts of Appeal.
Courts of Appeal
Courts of Appeal oversee rulings on the appeals filed by the parties against the decision of the Courts of First Instance. The parties are not allowed to exhibit further evidence unless such evidence is related to a possible cause for rejection of the main action. The decisions of the Appeal Courts can be challenged by the parties through a so-called "Amparo" lawsuit before a Collegiate Court.
Collegiate Federal Courts
Collegiate Courts are always Federal, since they oversee the resolution of appeals and means of challenge provided for in Federal laws, such as the Amparo law. Just as with the Courts of Appeal, the parties are not allowed to exhibit further evidence unless it is related to a possible cause for rejection of the main action. The cases are heard and ruled by a panel of three Magistrates, whose decision is final.
The Supreme Court
The Supreme Court is the exceptional Court of final appeal in Mexico. It is exceptional because, for this Court to hear a dispute, one of the following situations must exist: (i) the Supreme Court determines to hear an appeal from the Collegiate Federal Courts based on the general public importance of the matter at hand, or on whether the interests of justice require the Court to hear the matter; or (ii) the unconstitutionality of a regulation was brought before the Courts of Appeal.
Disciplinary Tribunal
On September 15, 2024, the judicial reform in Mexico was published in the Official Gazette. One of its most significant changes is the establishment of a specialised Disciplinary Tribunal, an autonomous body dedicated to enforcing ethical standards and disciplining judicial officials. It is tasked with supervising, investigating and sanctioning severe misconduct by judges, magistrates and other judicial personnel. Its primary objective is to foster integrity and ethical behaviour among judicial operators, targeting corruption, conflicts of interest and any actions that could undermine the system's credibility. The decisions, including any disciplinary measures imposed, from the Tribunal are final and non-appealable.
Additionally, it is important to highlight that this judicial reform entails the following substantial modifications:
- Election of justices, magistrates and judges by popular vote: This will be implemented gradually, beginning in 2025 and concluding in 2027.
- Judicial career is no longer required: Candidates only need to be Mexican citizens, hold a professional law degree, and have a minimum GPA of 8. This change opens the door to new profiles within the judiciary, with the potential risk of a lack of specialisation.
- Supervision under a new body: The Federal Judiciary Council will be replaced by the Judicial Discipline Tribunal, which will lead to a transition and restructuring of judicial oversight and control.
- New electoral organisation: The National Electoral Institute (INE) will be responsible for organising the elections for judicial positions, which will begin as early as the first half of 2025.
These changes to the Judiciary in Mexico have raised significant concerns among legal professionals and the broader community, particularly regarding its impact on specialised fields of law, such as civil, commercial, foreign trade, antitrust and intellectual property matters, among others. As mentioned, the reform introduces changes to the judiciary's structure, which, while intended to streamline the administration of justice, risks diminishing the quality and impartiality of judicial decisions. One of the most pressing issues is the lack of emphasis on specialised training and experience for judges and magistrates. By limiting the requirement for expertise, the reform could result in decisions that lack the necessary depth and understanding of these nuanced fields, potentially undermining the rights and protections that the law intends to secure.
Furthermore, the reform's implementation process, which is heavily influenced by the executive branch, has prompted widespread concern about judicial independence. The reform has provided the executive with significant influence over candidate selection, potentially compromising the judiciary's impartiality and leading to concerns about transparency in judicial appointments. These issues not only affect the perception of the judiciary's independence but also risk eroding public trust in the judicial system's ability to deliver fair and unbiased decisions.
The judicial reform will delay the issuance of judgments in ongoing cases due to the extensive changes that must be implemented. Adjusting to new procedural requirements and structural modifications will require time and resources, which may slow down the resolution of current matters. Consequently, parties involved in these cases could experience longer wait times for final decisions.
International organisations are being called upon to monitor this transition closely and to advocate for a measured approach that respects the principles of judicial impartiality and specialisation. For Mexico's economic and social progress, it is essential to uphold a judicial system that is not only efficient but also highly competent in specialised fields. Ensuring a robust, specialised and independent judiciary is crucial to maintaining Mexico's commitments to both domestic and international legal standards.
1.3 What are the main stages in civil proceedings in your jurisdiction? What is their underlying timeframe (please include a brief description of any expedited trial procedures)?
The main stages of civil proceedings in Mexico may change slightly depending on the type of proceedings being brought. However, the main stages are normally as follows:
I. Initial brief and response
A regular civil proceeding begins with the filing of the lawsuit with the Court, which may admit, dismiss, or request clarification of the lawsuit. If the lawsuit is admitted, the Court will serve the defendant, granting a statutory term to file the response and possible counterclaim. If the defendant files a counterclaim, the other party will be served to file its brief of response.
At this stage, the parties are obliged to offer all their documentary evidence, detailing which evidence is in their possession and which is not. The evidence they do have must be exhibited together with their brief. Otherwise, the parties must provide reasons as to why they do not have such evidence.
After the initial claim and counterclaim, if any, have been responded to, the Judge will set the date of the preliminary hearing in which the parties may discuss and reach an agreement. It is important to consider that this hearing is not contemplated in the Federal Code of Civil Procedures but is contemplated in some local codes. Therefore, this stage will depend on the code pursuant to which the civil dispute is being prosecuted.
II. Evidence period
After the response to the initial claim or counterclaim is filed, the Judge will grant the parties a statutory term to offer and exhibit evidence. At this moment, the parties may offer confessional, testimonial and/or expert evidence, besides exhibiting the pending documentary evidence.
Once the evidence has been offered and exhibited, the Judge will rule on whether to admit it and schedule an evidence hearing in which all admitted evidence will be prepared and conducted, e.g. testimonials, confessionals, and expert opinions.
III. Final allegations
Once all the evidence has been filed and conducted, the Judge will grant the parties a statutory term to file the brief of final allegations, which are the parties' last declarations before the Judge issues the resolution.
IV. Decision
Once the period of allegations has concluded and the parties have submitted their briefs, the Judge will issue the resolution, which may be challenged at a Court of Appeal. The resolution of such appeal can also be challenged through an Amparo lawsuit, which will be resolved by a Collegiate Federal Court.
The length of a civil proceeding in Mexico depends on the complexity of the matter and the volume of material that composes the dispute, e.g. the evidence offered by the parties. Additionally, in Mexico, any provisional or incidental decisions issued by the Judge can be appealed.
Therefore, it can take from one to three years to obtain a resolution at the first stage of a traditional civil procedure. However, since a first instance resolution can be challenged at a Court of Appeal, and at a Circuit Court at the last instance, the whole procedure may take a minimum of two and a half years, or up to four or six years in normal cases. Very complex cases may take more than a decade.
1.4 What is your jurisdiction's local judiciary's approach to exclusive jurisdiction clauses?
In Mexico, it is very common in civil acts to agree that, in case of dispute, the parties expressly waive any jurisdiction other than the Mexican Courts, whether federal or state. If this is the case, the Mexican Courts will have to enforce said clauses based on the freedom of contract, unless a well-founded and motivated reason is found not to do so.
1.5 What are the costs of civil court proceedings in your jurisdiction? Who bears these costs? Are there any rules on costs budgeting?
The Mexican authorities are obligated to deal with the costs of the litigation, since the Constitution establishes that justice is free for everyone.
However, every party is responsible for attorney fees, along with other costs related to the litigation, such as document expenses and the fees of the experts and another diligence. There are some guidelines for Courts to order payment of costs and attorney fees, based on the percentage of the amount expressly claimed.
1.6 Are there any particular rules about funding litigation in your jurisdiction? Are claimants and defendants permitted to enter into contingency fee arrangements and conditional fee arrangements?
There are no rules regarding funding litigation, contingency and conditional fee arrangements. Any clause or obligation in this matter may be arranged and based on arrangements between a financier and the parties.
1.7 Are there any constraints to assigning a claim or cause of action in your jurisdiction? Is it permissible for a non-party to litigation proceedings to finance those proceedings?
Mexican regulation does not expressly establish constraints to assign a claim. However, both the federal and local Codes that regulate civil proceedings state that only those with an interest in the judicial authority declaring or establishing a right or imposing a condemnation, and those who have a contrary interest, may initiate or intervene in a judicial proceeding.
Therefore, if an assignment of the cause of action is sought, it must be demonstrated that the assignee has the legal interest to participate in the dispute. This becomes relevant if we consider that surrogacy is permitted and regulated in Mexico.
Finally, Mexican law does not regulate any prohibition regarding the financing of litigation by a non-party.
1.8 Can a party obtain security for/a guarantee over its legal costs?
No, Mexican regulation does not provide the possibility of obtaining security for or a guarantee over legal costs. However, within the trial or prior to its commencement, the seizure of sufficient assets to guarantee the outcome of the trial may be ordered at the request of a party, and as a precautionary measure, exhibiting a guarantee to respond to the possible damages that could be caused to the person against whom the precautionary measure is adopted.
2 Before Commencing Proceedings
2.1 Is there any particular formality with which you must comply before you initiate proceedings?
No. However, in Mexico, it is common that in any contract or agreement, the parties are obliged to notify the other party of any possible breach, providing the possibility of remedying it before initiating a civil action.
2.2 What limitation periods apply to different classes of claim for the bringing of proceedings before your civil courts? How are they calculated? Are time limits treated as a substantive or procedural law issue?
In Mexico, limitation periods are treated as procedural law issues, even though they are regulated by the Civil Code and not the Codes of Civil Procedure. There are multiple limitation periods for commencing proceedings, depending on specific cases. However, the Civil Code regulates two limitation periods that are considered general rules and are calculated in years:
- A 10-year period in which to claim compliance with an obligation, counted from the time the obligation could have been demanded. Likewise, this period applies to claim damages to the health or integrity of a person.
- A two-year period to claim the following:
- Damages.
- Fees, salaries, wages or other remuneration for the rendering of any service.
- Civil liability for insults, whether made by word or in writing, arising from damage caused by persons or animals.
- Civil liability arising from unlawful acts that do not constitute a crime.
Additionally, res iudicata is recognised in the Civil and Commercial Codes and as a general principle of law.
3 Commencing Proceedings
3.1 How are civil proceedings commenced (issued and served) in your jurisdiction? What various means of service are there? What is the deemed date of service? How is service effected outside your jurisdiction? Is there a preferred method of service of foreign proceedings in your jurisdiction?
Once the plaintiff files its initial brief of action, if there are no grounds for dismissal or prevention, the Judge will order that the defendant be service of process. A Court's clerk must appear at the domicile of the defendant to deliver a copy of the initial document of the claim, evidence, and the official communication through which the summons was ordered. This official communication must clearly establish the deadline to answer the claim.
If the domicile of the defendant is not known, the notification will be made by decrees which will be published three times, seven days at a time, in the Mexican Official Gazette and in one of the daily newspapers of mass circulation. If, after 30 days, the defendant does not appear, the trial will be continued in default and the subsequent service will be made through a notice, which will be posted on the door of the Court.
The means of service will depend on what is to be served and the nature of the proceeding. Service can be made personally, by publication in the Judicial Gazette, by edict or by letter rogatory.
As for the deemed date of service, depending on the Code and the type of service, it will become effective on the same day or the day following. This is important because all legal terms shall be counted from the day after the one on which the notification becomes effective.
Service outside Mexican jurisdiction works through a special procedure carried out through international collaboration between national authorities and foreign authorities. In this procedure, the Mexican authority sends a letter of request to the other country informing of the procedure.
To execute this procedure, parties should include in their lawsuit that it will be necessary to use this international collaboration. Once this notification is served, the procedure will continue.
It is important to say that the type of procedure also depends on the country of the foreign party, since there are different international treaties that may apply, and thus the analysis and study of the case to determine which treaty is applicable is an important point that the plaintiff must consider before filing the claim.
Nonetheless, the Supreme Court ruled on a landmark case that if the defendant is a foreign legal person but has a branch domiciled in Mexico, Court documents can be served to that branch.
There is no preferred method of serving documents in Mexico in relation to foreign proceedings.
3.2 Are any pre-action interim remedies available in your jurisdiction? How do you apply for them? What are the main criteria for obtaining these?
In Mexico, precautionary injunctions are an interim remedy that can be applied for either prior to or during a claim. This interim remedy is considered an ancillary proceeding of the main claim.
The Federal Code of Civil Procedures provides some precautionary injunctions, such as: seizure of sufficient assets to guarantee the outcome of the trial; deposit or insurance of the objects, books, documents, or papers related to the lawsuit; and preventing the defendant from carrying out specific acts or omissions.
In some Mexican States' Codes of Civil Procedure, pre-action interim remedies also include confessional evidence and depositions, which are aimed at obtaining more information directly from the party potentially to be sued.
Such injunctions are required to be in accordance with the law; i.e., the plaintiff must prima facie prove grounds for its claim, danger of delay and the proportionality of the measure. In addition, there must be a cause that justifies such measures, and the solicitor will very likely be required to post a guarantee to answer for any damages that could be caused to the defendant.
3.3 What are the main elements of the claimant's pleadings?
It is important to distinguish the initial claim pleading from pleadings that are filed after the claim is under prosecution.
The initial claim pleading must contain the following, at the minimum: names and address of the parties; competent Court; type of proceeding; narration of facts; cause of action; grounds of the claim; and evidence (including Power of Attorney, if the plaintiff is acting though a legal representative). Furthermore, the plaintiff can authorise lawyers and clerks to participate in the trial, so that they may have access to the judicial file.
In subsequent pleadings, it is sufficient to mention the parties, type of proceeding, file number and the Court to which it is addressed.
Every pleading must be signed by the claimant or its legal representative.
3.4 Can the pleadings be amended? If so, are there any restrictions?
The general rule states that it is not possible to make any amendment to an initial claim pleading once it has been submitted to the Court. The only exception is provided where there are supervening facts.
However, the Court will allow amendments to the initial claim pleading where they are necessary to determine the issues in dispute between the parties.
3.5 Can the pleadings be withdrawn? If so, at what stage and are there any consequences?
Pleadings can be withdrawn at any stage of the civil proceeding. The consequences may vary, depending on the type of pleading, and the stage and type of proceeding.
For example, the Code of Civil Procedure of Mexico City states that the withdrawal of the claim obliges the claimant to pay the defendant the costs incurred as of the date on which the withdrawal is filed. Another example is that if one of the parties files an appeal against a first instance judgment and ultimately withdraws, it is obliged to pay the costs incurred by the other party for having had to participate in this stage of the appeal.
Finally, Mexican jurisdiction establishes that any withdrawal must be ratified by the interested party, either personally before the Court staff or in writing. Also, depending on the stage of the proceeding, if the claimant files for the withdrawal of the action, it will require the authorisation of the defendant; otherwise, the proceeding must continue.
4 Defending a Claim
4.1 What are the main elements of a statement of defence? Can the defendant bring a counterclaim(s) or defence of set-off?
The answer to the lawsuit must contain mainly the following: the address to hear and receive notifications; the so-called "exceptions" or defences (for example, the lack of legal representation of the claimant); the counterarguments to the lawsuit; the answer to all of the facts of the claim (which otherwise will be considered true); the refutation of the plaintiff's evidence; and, if necessary, the evidence offered by the defendant to rebut the plaintiff's arguments.
In the defence, the document that attests the personality must be attached, and in case of offering any evidence, it is also necessary that such evidence is also attached.
The defendant may bring a counterclaim or defence of set-off. In each case, it must be brought when filing the statement of defence.
4.2 What is the time limit within which the statement of defence has to be served?
Depending on the type of proceeding (civil/commercial, written/oral), the law establishes the deadline within which the statement of defence must be submitted. However, this time limit does not exceed 15 business days.
Strictly speaking, the plaintiff must be served with the statement of defence within the third or fourth day after the day on which the Court receives the statement. However, this period may be extended at the Judge's discretion.
4.3 Is there a mechanism in your civil justice system whereby a defendant can pass on or share liability by bringing an action against a third party?
There is no such mechanism. If the defendant believes that there is a third party to pass on to or share liability, this must be raised as a defence before the Court, exhibiting the evidence to sustain its request. In this case, the Judge will analyse the defendant's request and determine what is appropriate.
Another possibility is for the defendant to continue with the lawsuit and, once it is concluded and found liable, bring an independent action against the third party that was not called to trial, seeking retribution for what it had to pay or do.
It is also possible for the defendant to request the Judge to call a third party at the time of the enforcement of a judgment, if it is proved that said party is liable.
4.4 What happens if the defendant does not defend the claim?
In the case of the defence not being filed, and the defendant not participating in the trial, the lawsuit will continue to be processed, considering only the plaintiff's claims.
In general terms, if there is no response, all facts and causes of actions are considered to have been accepted by the defendant, unless they would be contrary to the law.
4.5 Can the defendant dispute the court's jurisdiction?
Yes. The defendant may claim that the Judge does not have jurisdiction to decide the matter. This may be done by stating so in the statement of defence. In this scenario, the Court is constrained to rule on the jurisdiction matter before dealing with the merits of the case. If the defendant's claim is grounded, the Court will refrain from hearing the case. The ground of this challenge can be the territory (defendant domicile), subject matter or the economical amount under dispute.
In some cases, there is a possibility of filing the response or motion directly to the Judge considered to have proper jurisdiction.
5 Joinder & Consolidation
5.1 Is there a mechanism in your civil justice system whereby a third party can be joined into ongoing proceedings in appropriate circumstances? If so, what are those circumstances?
A third party may join ongoing proceedings.
The Federal Code of Civil Procedures states that the interested parties may bring a third party to the proceeding only if this third party has a dispute with one or more of the parties, and the ruling of the proceeding may affect said dispute. Either the interested parties or the third party will file their claim within the same proceeding.
Another possible circumstance is where a third party appears because the resolution affects them directly, or the third party's interest is affected by the prevailing of one of the parties. Such third party may even oppose the execution of the resolution, which must be resolved by the Judge.
5.2 Does your civil justice system allow for the consolidation of two sets of proceedings in appropriate circumstances? If so, what are those circumstances?
Yes, the Mexican system allows consolidation of proceedings. Two or more proceedings may be consolidated only if:
- The proceedings are not ready for the final hearing at first instance.
- There are common questions of law or facts.
- The same dispute must be resolved.
- The resolution of the claims could lead to opposed rulings.
5.3 Do you have split trials/bifurcation of proceedings?
There are no split trials or bifurcation proceedings in the Mexican legal system.
6 Duties & Powers of the Courts
6.1 Is there any particular case allocation system before the civil courts in your jurisdiction? How are cases allocated?
Yes, there is. Civil Courts of First Instance in Mexico are in different domiciles and premises throughout the states. Depending on the amount of the claim and type of proceeding (oral or written), the claimant must go to the appropriate Court location. In each of these premises, there is a Common Office in charge of receiving the claims, randomly assigning them to one of the Courts, and providing the file number.
Finally, it is worth noting that if an appeal is filed in a proceeding (either against the final decision or any procedural resolution), a Higher Court superior will oversee the ruling on such appeal. If further appeals are subsequently filed in connection with the same original proceeding, these appeals must be referred to the same Higher Court, based on the general rule of "prior knowledge of the case" of the Mexican jurisdiction.
6.2 Do the courts in your jurisdiction have any particular case management powers? What interim applications can the parties make? What are the cost consequences?
Each Court may implement case management rules that allow it to better control cases, always seeking to comply with the deadlines and time limits established by law and with the principles of procedural economy and expeditiousness.
The Courts are mainly integrated by the Judge/Magistrates in charge of the cases and the drafting of the decrees and decisions, assisted by clerks. However, nothing can be served to the parties without the revision and signature of the Judge and/or Magistrates.
There are no formal interim applications that the parties can make. However, in Mexico, it is customary to carry out lobbying efforts with the Judge/Magistrates and clerks, aimed at discussing the case. This activity is free of charge.
6.3 In what circumstances (if any) do the civil courts in your jurisdiction allow hearings or trials to be conducted fully or partially remotely by telephone or video conferencing, and what protocols apply? For example, does the court – and/or may parties – record and/or live-stream the hearings and may transcriptions be taken? May participants attend hearings remotely when they are physically located outside of the jurisdiction? Are electronic or hard-copy bundles used for remote hearings?
The COVID-19 pandemic prompted a major change in Mexico in the use of electronic and online tools. Because of the sanitary measures adopted by the Courts, the online filing of actions and prosecution became very important and, in some cases, necessary.
Now, it is possible to present writs, consult legal resolutions and review judicial files electronically, although authorisation of the Judge and, in most cases, an additional tool called the "electronic signature" of the involved parties, are necessary. Today, there is no firm criterion regarding the possibility of carrying out procedural acts remotely, since this must be requested and justified by the interested party. However, on April 24, 2023, the Mexican Senate approved the National Code of Civil and Family Procedure. It was published in the Mexican Official Gazette on June 7, 2023. This Code will be implemented gradually, requiring both the Federal and Local Governments to adopt it no later than April 1, 2027. It extensively regulates the possibility of filing and prosecuting any action electronically, which will facilitate access to justice throughout Mexico.
Even so, the Judicial Authority has worked on alternative methods to make the use of electronic resources even more efficient, such as lobbying efforts through electronic means.
6.4 What sanctions are the courts in your jurisdiction empowered to impose on a party that disobeys the court's orders or directions?
The range of sanctions is wide and depends on the conduct of the party, as well as the nature of the order: procedural; or administrative.
For example, if the Court orders a party to clarify the content of its pleading and fails to do so, the Judge may dismiss the motion. Another sanction could be losing some procedural rights, e.g., if the Judge orders one of the parties to exhibit a certain document to support its claim but it refuses to do so, then the interested party will no longer be allowed to exhibit said document.
As for administrative orders, sanctions may range from fines to expulsion from the Court premises, depending on the order and severity of the disobedience.
6.5 Do the courts in your jurisdiction have the power to strike out part of a statement of case or dismiss a case entirely? If so, at what stage and in what circumstances?
Mexican Courts have the power to strike out part of the statement or dismiss a case entirely at any stage, even when issuing the decision. The circumstances may vary: Courts may strike out part of the claim if they consider it irrelevant, or if the claimant fails to exhibit evidence to support that part of the claim. The Court can also rule that the claimant lacks legal standing, capacity and/or interest to file the claim, dismissing the case entirely. In addition, the Court may partially or entirely dismiss a claim if the plaintiff's right has been precluded.
6.6 Can the civil courts in your jurisdiction enter summary judgment?
Mexican civil legislation does not provide for summary judgment. However, this type of proceeding and judgment is available in commercial and administrative matters.
6.7 Do the courts in your jurisdiction have any powers to discontinue or stay the proceedings? If so, in what circumstances?
Mexican Courts may stay the proceedings. For instance, if an appeal against a procedural resolution is filed and the Judge considers that the eventual ruling on said appeal may influence the prosecution of the case or even the judgment on the merits, the stay of the proceeding may be ordered.
Likewise, if the Courts become aware of the existence of another proceeding that could have an impact on the merits of the case, the Court may order the stay of the proceeding until such dispute is finally resolved or settled.
To view the full article click here.
Originally published by ICLG
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
