Arbitration tribunals in Mexico: what parties need to know

Introduction
Arbitration institutions
Right to access arbitration
Benefits of arbitration

Introduction

Various institutions oversee the application of arbitration worldwide. "Arbitration" is an alternative dispute resolution mechanism that is agreed between parties, which can be individuals, companies or states.

The most internationally recognised arbitration institutions have pragmatic and clear rules that provide for a practical and sensible solution to conflicts, benefitting the parties that trust and submit to an institution's jurisdiction.

Arbitration institutions

The London Court of International Arbitration and the International Chamber of Commerce are two such globally recognised institutions. They have established paradigms that have enabled them to configure arbitration rules which help to resolve commercial disputes daily, due to their strict management of the conduct of the arbitrations entrusted to them.

In Mexico, institutions such as the Mexico Arbitration Centre and the Mediation and Arbitration Centre of the National Chamber of Commerce of Mexico City administer arbitrations and have extensive experience at the national level. They have their own arbitration regulations under which domestic disputes in commercial matters are resolved.

Right to access arbitration

Arbitration in Mexico has established itself as a legitimate option for resolving conflicts between individuals and administrative authorities. This was consolidated further after the reform of article 17 of the Constitution on 18 June 2008. This reform introduced alternative dispute resolution mechanisms as a human right to the national legal order. Alternative justice thus became mandatory in all areas of law that do not relate to public order.

Therefore, the right to arbitration is not subject to the jurisprudence of the institutions, it is an exercising of the human right to obtain conflict resolution.

Benefits of arbitration

Arbitration has grown exponentially popular in Mexico, potentially for three reasons:

• speed – arbitrations in Mexico have the advantage that, given the nature of their processing and composition, the arbitral tribunal has particular rules to apply that favour speed, which means faster dispute resolution than trials processed before courts. Given the courts' workloads, litigation can take years to be finalised, whereas arbitrations are confined to a single hearing;
• specialisation – another advantage is that arbitrators with specialised knowledge about the disputed matter can be appointed to oversee the arbitration. Therefore, they will have greater knowledge or technical experience in any relevant or substantial area of the controversy. This guarantees the parties a reliably informed and seriously considered award; and
• reliability – another relevant characteristic that explains the increase in the popularity of arbitration in Mexico is the parties' confidence and certainty as to the impartiality and professionalism of the arbitral tribunal. This is because the arbitrators are outstanding professionals in their specialties. This contrasts with the distrust that may exist if the dispute is submitted to litigation for the administration of justice.

For further information on this topic please contact Raúl Herrera Hazas at Becerril, Coca & Becerril SC by telephone (+52 55 5263 8730) or email ([email protected]). The Becerril, Coca & Becerril website can be accessed at www.bcb.com.mx.