Mexico introduces first class action law

Law could increase litigation for companies doing business in the country

A rather historic change will come to Mexican courts in the coming months. For the first time, consumers will be able to bring class action lawsuits.

In April 2010, the Mexican Congress amended Mexico’s constitution to allow class actions in the country. President Felipe Calderón signed a class action bill into law a year later. The law was published in the Federal Official Gazette on Aug. 30, and takes effect on March 1, 2012.

Nuts & Bolts

Mexico, which is a civil law jurisdiction, created a class action system with some major differences from the system used in the U.S., which is a common law jurisdiction (see “Avoiding Abuse”).

Further Complexities

Other components of Mexico’s class action law also trouble litigation experts.

Prep Time

Experts admit it is difficult for U.S. companies to anticipate how Mexico’s new class action law will affect business and how Mexican courts will interpret the law. One preparation strategy is to keep an eye on some of the country’s federal and private agencies, which have standing to bring class actions under the law.

Ashley Post

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