The General Law on Alternative Dispute Resolution Mechanisms (ADR) is enacted in Mexico.

February 2, 2024

On January 26, 2024, the General Law of Alternative Dispute Resolution Mechanisms was published in the Official Gazette of the Federation. Likewise, the Organic Law of the Federal Judiciary and the Organic Law of the Federal Court of Administrative Justice were amended and added.

This law constitutes an advance in the regulation of alternative justice mechanisms, as it establishes the rules of a standardized procedure so that, through certified facilitators in the public and private sectors, disputes can be resolved in a uniform manner for the entire country, including online dispute resolution.

This law is expected to have very favorable effects on access to justice for individuals, since it implements a useful and attractive way for parties in conflict, including public agencies, to voluntarily submit to negotiation, arbitration, mediation and conciliation, in order to prevent or terminate a judicial controversy, which, we believe, will benefit the different systems of administration of justice, decreasing the immense workload of the jurisdictional bodies, allowing access to faster procedures.

This new law mandates the creation of the National Council of Alternative Dispute Resolution Mechanisms, which will issue the guidelines related to the persons who will act as facilitators, the creation of the system of agreements and the participation of collaborative professionals, among other rules that will allow its operation.

Likewise, it contains a special chapter for this type of dispute resolution mechanisms in the administrative area to be resolved, provided that the dispute is susceptible to transaction, thus allowing individuals and legal entities, federal and local public administration agencies, and autonomous agencies to resort to the application of this law. This is especially important for administrative authorities such as the Mexican Institute of Industrial Property (IMPI), since in the contentious proceedings before them, the parties may use this type of alternative dispute resolution mechanisms.

This law entered into force the day after its publication, on January 29, 2024. However, for its due compliance it is still necessary to update certain norms at the federal and local levels, granting one year for the legislatures to do so.

In OLIVARES we will continue working on the application of these ADRs, to achieve reparatory agreements and solve conflicts for the benefit of our clients.