This type of proceeding takes place when the claim is based on any of the documents that are enforceable under Mexican law (promissory notes, checks, enforceable judgments, etc.). The procedure begins with the filing of a written claim, and once the claim is admitted by the Judge, the defendant is ordered to pay, and if he fails to do so, his property is seized.
The oral commercial enforcement trial has considerable advantages compared to ordinary trials, since it allows the creditor to seize assets owned by the defendant from the beginning of the trial without having to wait to obtain a judgment for payment of the debt.
In terms of the recent amendments to the Commercial Code, the oral commercial enforcement trial consists of two hearings, the first of which is called “preliminary” in which the judge analyzes the parties’ personalities and rules on procedural exceptions that could hinder the proceeding. In the second hearing, known as the “trial hearing”, the evidence offered by the parties is presented and the corresponding sentence is issued. The presentation of written pleadings is eliminated, since any request from the parties must be formulated orally during the hearings.
The new oral executive commercial trial also represents a time saving for the parties, since the approximate time for its resolution is between 1 and 2 months compared to the previous “written” executive trials, which take approximately 8 to 12 months to be processed.
Negotiable instruments, specifically promissory notes, are a simple, practical and effective way of documenting debts that ensure a quick execution in Mexican courts. Although negotiable instruments such as promissory notes are simple and easy to prepare, it is advisable to obtain professional advice to ensure that they comply with all the requirements of the applicable legislation and that they can be enforced in a court of law. Special mention should be made of the negotiable instruments subscribed abroad that will be presented for collection within Mexican territory, since they will generally be valid when they comply with the requirements of the legislation of the country in which they were subscribed, but it is recommended that they also comply with the minimum requirements of Mexican legislation.
For the year 2018, disputes with a value of up to $650,000.00 (six hundred and fifty thousand pesos 00/100 M.N.) will be processed in the oral mercantile executive proceeding, in the year 2019 said amount will be increased to $1’000,000.00 (one million pesos 00/100 M.N.) while for the year 2020 the maximum will be $4’000,000.00 (four million pesos 00/100 M.N.). Cases exceeding such amount must be processed in accordance with the rules in force for traditional commercial enforcement proceedings.
At Acedo Santamarina, S.C. we have a team of experts in the elaboration and execution of titles of credit at your disposal ready to advise you.
