The resolution of disputes through arbitration has become a efficient and specialized alternative in Mexico. One of the critical stages of this process is the enforcement of arbitral awards, requiring the intervention of the judicial system to ensure compliance. In this article, we will explore the complex process of enforcing arbitral awards in Mexico, highlighting key aspects and relevant judicial decisions.
Arising from the impartial decision of an arbitrator, an arbitral award possesses a private nature. However, its enforcement necessitates the mediation of a judicial act. This act, carried out by a judicial body, does not alter the private essence of the award but assumes it, rendering it enforceable. With attributes of non-appealability, immutability, and coerciveness, the award serves as a title motivating its execution.
It is crucial to note that the arbitrator lacks the authority to directly enforce the award since they lack the imperium inherent in state jurisdiction. Although the award lacks the state’s force for execution, it retains the attributes of res judicata, as the authority to decide the dispute is a state delegation.
In the Mexican legal context, Article 1461 of the Commercial Code stipulates that an arbitral award, regardless of the country in which it was issued, will be recognized as binding and executed in accordance with the rules of Book V, Title IV, Chapter IX, relating to commercial arbitration. Article 1462 specifies that the enforcement of an arbitral award will only be denied in specific cases outlined in the said provision.
The procedure for recognition or enforcement of an award is conducted incidentally, as per Article 1463, with the tribunal limited to formal matters and excluding an examination of substantive issues, entrusted exclusively to the arbitrator.
A notable decision from the Third Collegiate Circuit Tribunal in 2008 has clarified the process of enforcing awards. This tribunal asserts that, for full effectiveness, an award must be recognized and executed by the judge of common or federal jurisdiction territorially located at the defendant’s domicile or the location of the assets subject to execution.
The trend towards a more expeditious recognition of awards has intensified, supported by procedural reforms expediting arbitration-related processes in Mexico.
The Supreme Court of Justice of the Nation (SCJN) has recently issued a thesis expanding the scope of arbitration in Mexico. Minister José Ramón Cossío emphasizes that the recognition of an arbitral award does not necessarily imply its active enforcement. The SCJN also establishes limitations for declaring the nullity of an award, restricting them to the exhaustive causes outlined in Article 1457 of the Commercial Code.
The SCJN delves into the concept of public policy in arbitration, stating that an award contradicts this principle when it transcends the limits of the state’s legal institutions, impacting fundamental societal interests.
In conclusion, the enforcement of arbitral awards in Mexico has experienced significant advancements, supported by judicial decisions clarifying procedures and limitations. While the jurisprudence of the Third Collegiate Circuit has influenced practice, the recent SCJN thesis reinforces and expands criteria for the recognition and enforcement of awards.
Trends indicate increased expeditiousness in processes, facilitating the efficient enforcement of awards. Procedural judicial reforms related to arbitration promise to further expedite this process, solidifying arbitration as a reliable and effective avenue for dispute resolution in Mexico.
