As part of the 2017 constitutional amendment to Articles 17 and 73 section XXIX-A, the Congress of the Union was granted the mandate to promulgate a general law establishing the principles and bases for alternative mechanisms for settling disputes, with the exception of criminal matters, which according to the transitory articles of such constitutional reform should have been done within 180 days counted after the day on which the mentioned decree was published.
It was not until January 26 that the Decree promulgating the General Law on Alternative Mechanisms for Settling Disputes (“AMSD Law“) and amending and adding the Organic Law of the Federal Judiciary and the Organic Law of the Federal Court of Administrative Justice was published in the Official Gazette of the Federation.
The AMSD Law not only seeks the prevention and resolution of disputes directly by the parties involved, but also the standardization of non-jurisdictional procedures throughout the country, which implies reaching resolutions in much shorter periods and a significant reduction in costs, both for the parties and for the Federal or Local Judiciary, always in accordance with the principles of willingness, promptness, honesty, confidentiality and economy.
Throughout its 144 articles divided into 9 chapters, the AMSD Law recognizes as alternative mechanisms for settling disputes: (i) negotiation, (ii) collaborative negotiation, (iii) mediation, (iv) conciliation and (v) arbitration.
The individuals authorized to apply the law are known as facilitators, who may be public or private and will have public faith in the certification of the agreements signed by the parties, which means that they must be certified by the Federal or Local Judiciary, as well as the local and federal Administrative Justice Courts in their respective jurisdictions.
Regarding the implementation of alternative mechanisms, the AMSD Law states that parties may request access to any Alternative Dispute Resolution Center, which may be public or private, but in the case of the last ones, the fees agreed upon with the facilitators will have to be considered.
After the request, it is possible to carry out as many hearings as needed, with the limitation of not being able to extend the period of three months. With the AMSD Law, the possibility of implementing the procedure by electronic devices is available, which represents a greater advantage over the judicial procedures.
Once the parties have signed an agreement, it will have the effect of res iudicata once it is filed in the System of Agreements corresponding to the Public Alternative Dispute Resolution Center of the Federal or Local Judiciary.
The AMSD Law also includes restorative and therapeutic justice proceedings, as well as regulations for alternative dispute resolution mechanisms in the administrative area.
According to the Transitory Articles, the Mexican Congress and the Legislatures of the states will have a maximum period of one year to promulgate the appropriate legislative amendments to implement the Decree. In case they omit to perform the legislative amendments, the AMSD Law will be directly applied.
An important point that deserves our attention is that National Code of Civil Procedures will be applied to the AMSD Law on a complementary basis. As mentioned before, it will enter into force gradually in accordance with the declaration that Chambers of Deputies and Senators, as well as Local Legislatures must perform before April 1, 2027. Only with the legislative amendments that the Transitory Articles of this Decree provide we will witness the way in which each Legislature will solve the vacatio legis of the complementary law.
In Acedo Santamarina, S.C. we have an area integrated by lawyers specialized in the application of alternative mechanisms for settling disputes that have assisted clients in the resolution of their conflicts in non-jurisdictional proceedings. We will be pleased to advise you.
Marcos Fabian Castro Cano
Associate
Marcos Fabian Castro Cano
Asociado
