I. INTRODUCTION.
On January 26, 2024, the "Decree issuing the General Law on Alternative Dispute Resolution Mechanisms and amending and adding to the Organic Law of the Judiciary of the Federation and the Organic Law of the Federal Court of Administrative Justice" (the "Decree") was published in the Federal Register ("DOF"), the Decree can be consulted at the following link.
Alternative Dispute Resolution Mechanisms ("ADRM") are a legal alternative for resolving disputes between parties without the need to go to court. Therefore, through the ADRM, the parties can reach an agreement through willingness, cooperation, and dialogue between them to resolve the conflict.
There are many ADRM to resolve a conflict, which are (i) Negotiation, (ii) Mediation, (iii) Conciliation, (iv) Arbitration and (v) others. Each of these methods will have its own formalities and procedures
II. CONTENT OF THE DECREE.
ALTERNATIVE DISPUTE RESOLUTION MECHANISM CENTRES.
The publication of the General Law on Alternative Dispute Resolution Mechanisms (the "Law"), the parties in dispute, may attend the dispute in the public or private Alternative Dispute Resolution Mechanisms Centers (the "Center") so that an authorized third party, after assessing the dispute, determines whether it can be resolved by the ADRM.
There are two times to go to the Centers
1. If the parties have contractually established it, and
2. In the event that the parties have initiated judicial proceedings after the entry into force of the Decree
The above mentioned, as long as both parties agree and cooperate jointly to resolve the dispute, if any of the parties maintains arguments that prevent the application of the ADRM to the dispute, the ADRM will be concluded, and they must go to court to resolve it.
The time limit for obtaining an agreement through an ADRM should not exceed 3 months unless the parties agree to modify this term. The Centre will make the necessary sessions between the parties for getting a solution to the dispute.
Once the agreement has been reached between the parties, they must enter into an agreement, which will be validated by the owner of the Center within a period of no more than 30 working days.
Una vez alcanzado el acuerdo entre las partes deberán celebrar un convenio, el cual será validado por el titular del Centro en un plazo no mayor a 30 días hábiles. Una vez realizado lo anterior, el convenio deberá de registrarse e inscribirse en el Sistema de Convenios y tendrá efectos de cosa juzgada, es decir no podrá ser impugnado.
PUBLIC CENTRES FOR ALTERNATIVE DISPUTE RESOLUTION MECHANISMS IN ADMINISTRATIVE JUSTICE.
The Law establishes a ADRM to be used in administrative procedures, that is, when bodies that are part of the Public Administration are involved.
In order to apply this ADRM, it is necessary that: (i) the conflict can be resolved by settlement and (ii) the administrative authority has authorized, through a legal technical opinion, the viability of the participation of the administrative body in the ADRM.
The resolution of the dispute between the parties cannot exceed 3 months, unless due to the status of the ADRM it is necessary to extend the term for a single occasion, up to another 3 months.
If the parties resolve the dispute, they will enter into an agreement, and it will be shared with the jurisdictional authority with the intention of having it reviewed. If the agreement is inadmissible because it affects the rights of third parties, contravenes public order provisions or is disproportionate, the parties may choose to rectify the omissions or resume the administrative procedure.
The ADRM will not be applicable in administrative matters in the following cases: (i) when they affect the rights of third parties, (ii) when they threaten public order, (iii) they affect programs or goals of the Federal Public Administration and Autonomous Constitutional Bodies, and (iv) others.
III. TRANSITORIOS
- • The Law entered into force the day after its publication in the DOF.
- • The authority must issue corresponding regulatory updates to comply with the provisions of the Decree.
- • Those ADRM initiated prior to the entry into force of the Decree will continue with the provisions in force at the time of its initiation.
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This document is not legal advice and, if you have any questions or require advice, please contact us.
Campa & Mendoza
[1] It refers to the well-founded and reasoned document that contains the legal analysis, on the responsibilities of public servants and budgetary viability that determines the participation in an ADRM.
