Court system

Outline the organisation of your court system as it relates to collective or representative actions (class actions). In which courts may class actions be brought?

According to the Mexican Federal Code of Civil Procedure (the Code of Civil Procedure) and the Mexican Constitution, the federal courts are charged with the defence and protection of collective interests. Specifically, federal district courts handle the first instance, while the second instance is processed by single-judge circuit courts.

Frequency of class actions

How common are class actions in your jurisdiction? What has been the recent attitude of lawmakers and the judiciary to class actions?

Regardless of being incorporated to the Code of Civil Procedure since 2011, class actions are still not that common. In Mexico, there is no official record of the number of class actions initiated - by a government agency or by private individuals - settled or adjudicated on the merits. To our knowledge, very few class actions have been settled.

Nevertheless, of the subject matters over which a class action can be initiated, consumer and environmental claims tend to be the most commonly used. For example, according to the Federal Consumer Protection Agency, there are currently 10 ongoing class actions initiated by said agency and 15 claims initiated by private individuals. This is without taking into consideration the class actions that other government agencies or private individuals could have started regarding other subject matters.

Due to the limited number of cases, few judicial criteria have developed regarding class actions. Ever since class actions were properly regulated in the Federal Code of Civil Procedures in August 2011, only 20 theses (criteria issued by the federal judiciary) have been issued by the Mexican judiciary, most of which revolve around the requirements provided for by law in order to have legal standing.

At the moment, it is not possible to determine or give an opinion with regard to the attitude of lawmakers and the judiciary regarding class actions because there have not been many decisions in this regard. For example, at the time of writing only one class action dispute has been decided with regard to its merits.

Legal basis

What is the legal basis for class actions? Is it derived from statute or case law?

The rules that govern class actions, as well as the list of those with legal standing for submitting them, can be found in the Fifth Book of the Code of Civil Procedure. Nonetheless, those with legal standing to submit class actions can also be found in the applicable law of the subject matter on which the class actions will be based. For example, the Federal Consumer Protection Law provides for the submission of class actions related to consumer products, but at the same time refers to the Code of Civil Procedure regarding the procedure itself. This is because, before being defined in the Code of Civil Procedure, class actions could only be found in the specific bodies of law of each subject matter.

Types of claims

What types of claims may be filed as class actions?

Pursuant to the Code of Civil Procedure, only class actions concerning the protection of collective interests or rights of the following subject matters can be filed: environmental matters and public and private relationships of consumer products or of provision of services.

Matters related to antitrust issues, financial services or consumer redress and product liability are all considered included within the scope of the consumer relationships established under Mexican law.

To file a collective action alleging damages caused to consumers owing to monopolistic practices or unlawful acquisitions, there must first be a final ruling issued by the Federal Antitrust Commission declaring the existence of said practice or acquisition. Owing to this additional requirement, collective actions related to antitrust law are fairly uncommon.

To our knowledge, there are no court precedents of types of claims that cannot be brought under Mexican law, aside from those listed above.

Relief

What relief may be sought in class proceedings?

The relief sought can consist of monetary damages, the restitution of status prior to the damage or - if this is not possible - the substitute compliance according to the harm caused to the rights and interests, and in specific performance. Disgorgement has not been expressly recognised by the Mexican courts as a claim that can be sought in class proceedings.

The remedies available depend on the type of class action that is to be filed. There are three types of collective actions:

• iffuse actions: these are indivisible claims brought to protect diffuse rights or interests belonging to an undetermined community. Their purpose is to obtain from the defendant the repair of the damage caused. Such repair can consist of the restitution of status prior to the damage or, if this is not possible, the substitution of compliance according to the harm caused to the rights and interests of the community. The existence of a legal relationship between the community and the defendant is not necessary;
• collective actions in the strict sense: these are indivisible claims brought to protect common rights or interests belonging to a determined or determinable community or group based on common circumstances. Their purpose is to obtain from the respondent the remedy of the damage (usually through the performance of or abstention from certain activities), as well as compensation for damages for each member of the group. It is required for the members of the group to have a legal relationship with the respondent, and this relationship must be established in statutory law; and
• individual homogeneous actions: these are divisible claims brought to protect individual rights or interests that have a collective impact, belonging to individuals in common circumstances. Their purpose is to obtain from the defendant the specific performance of a contract or its termination, along with the applicable legal effects and consequences.

Initiating a class action and timing

How is a class action initiated? What is the limitation period for bringing a class action? Can the time limit for bringing a class action be paused? How long do class actions typically take from filing to a final decision?

A formal claim must be filed before a federal district court. The claim must meet certain formal requirements, such as:

• stating the name of the representative and its standing;
• the list of members of the group or community that will act as plaintiff;
• the determination of the right considered affected;
• the type of action filed;
• the relief sought;
• the facts on which the claim is based; and
• its legal basis.

These requirements vary depending on the type of action filed.

The Code of Civil Procedure does not provide for the requirement of giving notice with opportunity to cure the alleged damage or violation of a right to the future respondent, prior to filing the complaint.

On a procedural basis, the Code of Civil Procedure establishes a 3 and a half years statute of limitations. Substantially, however, there is no limitation period for filing a class action as such. Instead, this depends on the specific remedy that is being claimed in the class proceeding (see question 5). Each statutory law envisages a specific remedy with its own limitation period. For example, Mexico’s environmental law provides for a limitation period of 12 years for claiming damages for environmental liability, while the Federal Civil Code provides for a limitation period of two years for civil liability that arises from acts that do not constitute crimes.

There is no average duration for class proceedings. The duration depends on the complexity and circumstances of each case, such as the remedies claimed or the number of members in the class.

Class formation

Standing

What are the standing requirements for a class action?

According to the Code of Civil Procedure, only the following individuals or entities have the right to exercise a class action (legal standing):

• a common representative acting on behalf of a class composed of at least 30 members;
• non-profit associations duly incorporated at least a year prior to the submission of the claim, whose stated purpose includes the promotion or defence of the interests involved in the action, and properly registered before the Federal Judiciary Council;
• the Attorney General’s Office; and
• the Federal Consumer Protection Agency, the National Commission for the Protection and Defence of Financial Service Users, the Federal Attorney’s Office for Environmental Protection and the Federal Antitrust Commission. These agencies can bring actions only in relation to consumer’s rights, financial service user’s rights, environment protection and antitrust protection, respectively.

Additionally, the Code of Civil Procedure lists a number of specific requirements of standing to allege cause that must be fulfilled by the plaintiff and which he or she must prove when filing the claim. These are:

• there must be harm or damage suffered by consumers, by users of a public or private service, by the environment, or by consumers caused by monopolistic practices or unlawful acquisitions that were previously confirmed by the Federal Antitrust Commission;
• the dispute must revolve around facts or law issues common among the relevant community;
• the community that files the claim must have at least 30 members when dealing with collective actions in the strict sense or individual homogeneous actions. Additionally, recent judicial criteria have determined that this requirement will also apply regarding diffuse class actions, regardless of whether this requirement is not expressly mentioned in the Code of Civil Procedure. However, the judiciary has also found an exception to this rule when dealing with environmental class actions, pursuant to a specific provision (article 28) of the Federal Environmental Liability Law that states that any private individual that forms part of a community that suffers an environmental harm is entitled to claim damages before the federal civil courts. This law does not specifically say that this claim can be filed through a class action. Environmental class actions are not regulated by this statute, but by a different law called the General Law of Ecological Balance and Environmental Protection;
• there must be a clear relationship between the claim and the damage allegedly suffered;
• there must not be an action that was previously resolved on the basis of the same claims, as these proceedings are barred by res judicata; and
• the statute of limitations must not have elapsed.

Participation

Do members of a class have to opt in or opt out of the action? Are class members notified that an action has been commenced on their behalf and, if so, how?

The Mexican legal system has adopted the opt-in mechanism, whereby the intent of a member of a class or community to join the class action must be expressly declared. Said member can join a class action during any stage of the proceedings or up to 18 months after the judgment rendered is considered final. In order to join the class, members of the group or community have to submit an express communication, through any means, to the common representative or legal representative of the plaintiffs, who will be obliged to file the request to the judge. The judge will then analyse the request and issue the corresponding ruling.

To make sure that all members of the community or group are informed that a class action has been admitted, the judge can order its notification to said members through those means he or she deems appropriate, taking into consideration the size, location and other relevant characteristics of the group or community. This notice must be economic, efficient and extensive, and must take into consideration the circumstances of each case.

If a person requests to be excluded from the class action in any stage of the proceedings, the Code of Civil Procedure states that this must be understood as an individual waiver of his or her right to make the claim under a class action. Therefore, said person will not be able to participate in any other collective proceeding related to the same facts and claims.

The Mexican Congress expressly declined to enact an opt-out class action mechanism. When the Federal Code of Civil Procedure was being amended to regulate class actions in Mexico, a proposed bill and congressional declaration of purpose were submitted to the Senate that included an opt-out mechanism for class formation purposes. This bill provided that in order for the judgment rendered in a class action procedure not to have effects on a member of the community or group that filed a class action, said member had to expressly request exclusion regarding said particular collective proceeding. The request had to be made in writing to the judge and at any stage of the proceedings up until before the issuance of the judgment.

The reasoning behind this bill was that an opt-out mechanism would be able to give full force and effect to class actions, because otherwise - by adopting the opt-in mechanism - the proceeding could resemble a procedural figure known in Mexico as active joint litigation, thereby obstructing the mandate of the Constitutional reform of July 2010 and June 2011.

However, once the Senate studied this bill, it determined not to adopt the opt-out mechanism and to implement an opt-in mechanism instead.

Certification requirements

What are the requirements for a case to be filed as a class action?

The claimant party must comply with certain requirements that are reviewed by the federal judge during a period known as ‘certification’ (see question 10). These consist of the requirements of standing to allege cause previously mentioned in question 7, and in not falling in of the causes for dismissal listed in the Code of Civil Procedure. The latter consists of the following:

• that, when dealing with class actions in a strict sense and individual homogeneous class actions, the members of the plaintiff class have not granted their consent regarding the filing of the claim;
• that the acts against which the claim is filed derive from administrative proceedings followed in the form of a trial or judicial proceeding;
• that the representation of the plaintiff does not meets the requirements established by law;
• that the class in strict sense class actions and individual homogeneous class actions cannot be determined or are not determinable with regard to the harm suffered by its members and the common factual or legal circumstances of said harm;
• that the class action is not the ideal procedure for making the claim;
• that there is already another class action regarding the same claim, which would lead to a consolidation on the terms previously explained in question 11; and
• that the civil association of individuals that intends to file the claim does not fulfil the requirements previously mentioned in question 7.

The existence of one of these impediments can lead to the dismissal of the class action regardless of the current stage of the procedure. Furthermore, the judge can determine this dismissal ex officio.

How does a court determine whether the case qualifies for a class action?

Once a claim has been filed as a class action, the judge will give notice to the defendant and provide him or her with the opportunity to submit commentaries, within the following five business days, on whether the requirements of standing to allege cause (see question 7) have been fulfilled by the plaintiffs. After that period, the judge has 10 days to certify that the formal requirements of a class action are met, as well as to analyse the right of action or standing requirements. This procedural stage is known as the certification of the class action.

If the judge considers that one of the requirements is not met, he or she must dismiss the claim. In this case, the members of the group retain their rights to individually file an ordinary action.

On the other hand, if the judge considers that all the requirements have been fulfilled, the class action must be admitted. Regardless of this, the Code of Civil Procedure states that this determination can be modified at any stage of the procedure, if there are justified reasons for it. The law is not clear if this modification can be made ex officio.

Consolidation

Is there a process for consolidating multiple class action filings?

Under the Code of Civil Procedure, the judge has the obligation of consolidating disputes that were filed simultaneously on the basis of the same facts. While the Code of Civil Procedure does not provide for a definition of when a class action is considered to have been filed simultaneously with regard to another class action, it does list the general requirements applicable for the accumulation of every type of civil litigation. In this regard, different proceedings must be consolidated when the decision to be made in each proceeding requires the confirmation, constitution or modification of legal relationships arising, partially or in their entirety, from the same facts and when they deal with claims between the parties that are inextricably connected between each other, making it necessary for these disputes to be solved by a single decision, to avoid contradictory determinations. The judgment made regarding a class action procedure is considered res judicata for any other possible class action claim based on the same facts. However, individuals are still entitled to initiate individual procedures regarding their individual claims.

When the proceedings at hand are being handled in the same court, the judge can consolidate them ex officio. However, if this is not the case, the defendant must request the consolidation.

Regarding class actions, there is an express prohibition in the Code of Civil Procedure stating that individual proceedings and collective proceedings cannot be consolidated under any circumstance. In addition, only diffuse class actions and a class action in the strict sense may be consolidated.

In the case of the existence of a collective procedure concerning the same cause and grounds for the claim made in an individual procedure, the defendant in both cases must inform both judges. Once informed, the judge in the individual procedure must inform the plaintiff of the existence of the collective procedure, in order for the plaintiff to decide if he or she wants to pursue the claim individually or adhere to the collective claim. If the latter option is chosen, the plaintiff must withdraw from the individual procedure.

The Code of Civil Procedure allows those individuals that tried to exercise individual homogeneous actions to make their claims in an individual procedure if the class action is declared inadmissible by the judge.

At a federal level, the Mexican judiciary has at its disposal the Comprehensive File Tracking System, which allows the courts to find out about other types of actions or procedures that might be correlated to a case that is currently being handled. Nevertheless, if the existence of this other procedure is not being handled within the same court, the defendant must be the one who brings this situation to the attention of the competent judges. This system is available to the public in a more limited manner, providing that the names of the parties and other specific information is blacked out.

Procedure

Discovery

How does discovery work in class actions?

Mexican law does not provide for discovery. As a general rule, the production of documents is considerably more limited in Mexico than in other countries, such as the United States. Instead of requesting all documents concerning a specific moment and subject matter, the Mexican legal system only allows for the production of specific documents; for example, ‘the public offer made by the defendant on 6 March 2016, concerning the sale of the product that is now the subject matter of the present dispute’.

In this regard, the parties can file a pretrial action known as ‘preparatory means to trial’, where they can request a judge to order the submission of specific documents that they deem necessary for preparing their claim. Mexican law does not distinguish between using the document sought for proving that the case can proceed as a class action and using the document sought for the merits of the dispute (as may occur in proceedings in the United States).

Furthermore, in the specific case of class action procedures, the judge has the power to request from the parties, or even third parties, any object, document or information he or she deems relevant, as long as they have a direct connection with the disputed facts. This means that the judge can request ex officio any document in possession of a party, to get a better understanding of the facts of the case.

Privilege and confidentiality

What rules and standards govern non-disclosure of documents on the grounds of professional privilege, litigation privilege or other confidentiality considerations?

There are no discovery proceedings in Mexico and therefore, the standards of non-disclosure of documents is not as relevant as in other jurisdictions and it applies in a different manner.

There are various provisions under Mexican law applicable to professional privilege:

• under article 16 of the Mexican Constitution, people are entitled to protection of their personal data and the inviolability of private communications;
• the regulatory law for article 5 of the Constitution with respect to professional practices in Mexico City states that professionals must maintain strict secrecy on matters confided to them by their clients;
• each State of the Mexican Federation provides for its own rules and standards of professional privilege, which generally provide for an indemnity for damages caused by a non-consensual disclosure of information protected by privilege. This includes both civil and criminal procedural statutory laws; and
• special statutory laws regulating specific legal professions, such as notary publics, also provide for an obligation to maintain professional secrecy.

As a general rule, the content of judiciary files is considered confidential, and only the parties involved have access to them. This has a few exceptions, such as final rulings (which nonetheless censor the personal information of the parties involved) and final hearings that are open to the public, except for those the judge deems appropriate to keep confidential.

Testimony

What rules apply to submission of factual and expert witness testimony? In what circumstances will the court order witness-examination?

Under the Federal Code of Civil Procedure, every person that has knowledge on the disputed facts is obliged to provide witness testimony. Nevertheless, each party is only allowed to submit a maximum of five witness for each disputed fact.

Once admitted, witness testimonies must be presented during a hearing within 40 business days after their admission. This term can be extended at the judge’s discretion. During this hearing, both parties may make any examination of or pose questions to the witness.

Expert witnesses may be submitted by the parties when the dispute is related to a science or art, or when the law expressly provides it. Their opinion is submitted in writing. Each party has a right to appoint an expert, unless they agree to appoint just one. If the experts appointed by the parties have opinions that are contradictory, the judge will appoint a third independent expert. The judge has discretion to choose whichever expert testimony or opinion he or she deems best when weighing the evidence. In addition, by request of a party or ex officio, and in case a disputed point has not been clarified, the judge may summon the appointed experts to a hearing for the parties to ask further questions of them.

During class proceedings, the judge can make use of any person, document or thing that he or she deems necessary - either by request of a party or ex officio - as long as they are related to the disputed facts. Furthermore, the judge has the duty to admit and analyse any opinions or documents, written or oral, by third parties not related to the proceeding that appear amicus curiae, as long as they are relevant to solving the dispute and do not have a conflict of interest with the parties.

Defence

Defence strategy

What mechanisms and strategies are available to class-action defendants?

The parties may employ any strategy they deem necessary to prove their case. However, the judge will not admit evidence that is contrary to moral standards or social decency.

Joint defence agreements

What rules and standards govern joint defence agreements? Are they discoverable? What are the advantages and disadvantages of these agreements?

There are no express statutory provisions on joint defence agreements. The Code of Civil Procedure does state that a sole legal representative must be appointed when a party is composed of multiple persons. Also, any civil association that intends to file a claim in representation of a class must be registered before the Federal Judicial Council.

Any agreement of this kind would not have to be disclosed by the parties unless they directly relate to the claims or disputed facts of the proceeding, subject to the disclosure requirements mentioned above (see question 12) and a court order.

Settlement

Approval of settlements

Describe the process and requirements for approval of a class-action settlement.

The parties can agree to settle the dispute, whether partially or whole, at any time during the proceedings, up until the judgment is considered res judicata. The Code of Civil Procedure does not provide for a minimum of members of the community that have to approve the settlement negotiated with the defendant.

The judge has the duty to verify that the settlement reached between the parties is in accordance with the law and that it effectively protects the interest of the community. In this regard, the opinion of the Federal Consumer Protection Agency, the National Commission for the Protection and Defence of Financial Service Users, the Federal Attorney’s Office for Environmental Protection or the Federal Antitrust Commission (depending on the subject matter of the dispute) and the members of the community, regarding the settlement, shall be heard. After said opinions have been heard, the judge will be able to approve the settlement, putting an end to the procedure and the dispute. This approval shall be considered res judicata.

Objections to settlement

May class members object to a settlement? How?

Besides the opportunity of being heard by the members of the community, prior to the approval of the settlement by the judge, there is no other mechanism for said members to object to said agreement. In this regard, a problematic situation could arise where the legal representative of the community in the proceedings settles a dispute with the defendant under terms that are not satisfactory for some of the members of the community.

Separate settlements

How are separate class action settlements handled?

Mexican statutory law does not expressly provide for separate class action settlements.

Judgment and appeal

Preclusive effect

What is the preclusive effect of a final judgment in a class action?

Once a judgment or settlement is considered final or res judicata: it will no longer be possible to settle the dispute. Any new plaintiffs that did not form part of the class in the previous class action will be precluded from filing a new class action regarding the same facts and claims. However, this shall not constitute an impediment for them to file their claim individually.

As mentioned in question 8, members of the relevant community that still have not joined the class action will be able to do so even after the judgment or settlement becomes res judicata, but only have 18 months to do so. Nevertheless, they would still need to prove before the judge the damage they suffered owing to the acts of the defendant.

Appeals

What type of appellate review is available with respect to class-action decisions?

Prior to the issuance of the final judgment, only the decision regarding the admission or dismissal of the claim can be appealed. However, other rulings that may cause irreparable damage and that could constitute violations to fundamental rights may be challenged through an indirect amparo action, a constitutional action alleging the violation of rights committed by the governmental authority (including courts of law) and that can be filed before federal district courts.

The final judgment issued in a collective action can also be challenged with an appeal. This appeal procedure is decided by a single-judge circuit court. Parties can file a direct amparo action before a collegiate circuit court against the judgment issued in the appeal.

The judgments rendered in this direct amparo can also be reviewed by the Supreme Court of Justice. However, this is reserved only to extraordinary cases and limited to constitutional issues.

Regulatory action

Regulators

What role do regulators play in connection with class actions?

There have been no regulatory determinations regarding class actions, ever since they were included in the Code of Civil Procedure. Their implementation has so far been done only by the legislative power and the federal judiciary.

Private enforcement

Describe any incentives the civil or criminal systems provide to facilitate follow-on actions.

Mexican law allows follow-on actions. However, there are no specific incentives in the court system to facilitate them.

Alternative dispute resolution

Arbitration and ADR

What role do arbitration and other forms of alternative dispute resolution play in class actions? Can arbitration clauses lawfully contain class-action waivers?

Statutory law does not state whether arbitration is allowed regarding subject matters that can be claimed through class actions. However, a judicial criterion of the First Chamber of the Mexican Supreme Court (2015) established that arbitral agreements regarding disputes that can be claimed through class actions can be disregarded in favour of the collective procedure. The reasoning behind this is that class actions seek to protect constitutional rights that are non-renounceable, and not mere commercial rights.

While this criterion is not yet binding on other courts of the federal system, it does serve as an important guideline for them, as it was determined by the Supreme Court itself.

Court-ordered mediation

Do courts order pretrial mediation in class actions? Does the appointment of a mediator make it more likely that the court will approve a settlement?

According to the Federal Civil Code of Procedure, once the judge has certified the claim and admitted it as a class action, he or she must determine the date on which a conciliation hearing is to take place. In this hearing, the judge acts as a conciliator and proposes possible solutions to the dispute, encouraging to the parties to settle it.

The Federal Civil Code does not provide for the appointment of a mediator or conciliator within the class proceeding. Nevertheless, the judge can make use of expert opinions that he or she deems appropriate to propose solutions to the dispute.

In addition, the parties involved are not prevented from concluding a settlement with a mediator or conciliator outside of the class proceeding. This settlement would have to be acknowledged by Mexican judges as valid and enforceable.

Fees, costs and funding

Contingency fees

What are the rules regarding contingency fee agreements for plaintiffs’ lawyers in a class action?

There are no specific provisions in this regard. The attorneys’ fees are subject to the service contract concluded between the class legal representative and the attorneys.

Cost burden

What are the rules regarding a losing party’s obligation to pay the prevailing party’s attorneys’ fees and litigation costs in a class action?

According to the Code of Civil Procedure, each party shall assume their own legal costs that derive from the class action, including the legal fees of the representatives.

Calculation

How are costs calculated? What costs are typically recovered? Does cost calculation differ in the litigation and settlement contexts?

The fees mentioned in the previous question have a cap determined by the amount of the dispute:

• a cap of 20 per cent when the liquidated amount of the dispute does not exceed 200,000 times the minimum wage of Mexico City (currently around 160.08 million Mexican pesos);
• when the liquidated amount of the dispute exceeds 200,000 times but is less than 2 million times the minimum wage of Mexico City (as above), the cap shall be of 20 per cent up until the first 200 times of the minimum wage and up to 10 per cent regarding the surplus; and
• if the liquidated amount of the dispute exceeds 2 million times the minimum wage of Mexico City, the cap shall be of 11 per cent regarding the first 2 million and of 3 per cent regarding the surplus.

If the parties settle the dispute before the final ruling, the legal costs must be contemplated as a part of the negotiations of the settlement. The legal fees shall still be subject to the cap previously mentioned even in this scenario.

Third-party funding

Is third-party funding of class actions permitted?

Mexican law neither prohibits nor expressly allows third-party funding.

Public funding

Is legal aid or other public funding available for class actions?

There is no public funding or legal aid available to parties that initiate class actions. However, those interested may join class proceedings initiated by government agencies such as the Federal Consumer Protection Agency, given that they meet the legal standing requirements to allege cause previously mentioned (see question 7).

Insurance

Are adverse costs, adverse litigation judgment or after-the-event insurance available?

Adverse costs are not available (see questions 27 and 28).

Transfer of claims

Can plaintiffs sell their claim to another party?

Mexican law neither prohibits nor expressly allows the sale of claims to a third party. However, the Code of Civil Procedure does require the representative body of the class to be non-profit and expressly prohibits said body from initiating or exercising class actions with profit motives.

Distributing compensation

If distribution of compensation to class members is problematic, what happens to the award?

The terms of how the amounts to be paid to the members of the community will be distributed shall be determined by the judge within the final judgment. This distribution shall never be through the common legal representative, but directly to the members of the community instead.

The Code of Civil Procedure does not provide a solution in case the distribution of the compensation turns out to be too problematic. Nor does it state that the amount that does not end up being distributed shall be returned to the defendant or forfeited to a charity group or to a specific consumer group.

However, the Code of Civil Procedure has established a mechanism when dealing with diffuse class actions with aims to avoid any possible problem regarding the costs incurred during the conduction of the proceedings. A fund is created by the Federal Judiciary Council, the administrative section of the Mexican judiciary, using the resources emanating from the final judgment, different from the amounts destined to the compensation of the members of the class action. This fund shall be used exclusively for the payment of the costs that arise from the collective proceedings, the payment of the legal fees of the common legal representative of the plaintiff, the costs incurred by the notifications made to the members of the community (including the final judgment) and the preparation of the proofs that require it so. In addition, the Federal Judicial Council can also determine to use these resources for endorsing investigations related to class actions and collective rights.

The Federal Judicial Council must disclose on a yearly basis the source, use and destination of these resources.

Update and trends

Legal and regulatory developments

What legislative, regulatory or judicial developments related to class actions are on the horizon? 

Legal and regulatory developments34 What legislative, regulatory or judicial developments related to class actions are on the horizon?

In March 2019, a legislative proposal was submitted seeking to modify various provisions of the Federal Code of Civil Procedure and the Securities Market Law. Among other things, these modifications would allow shareholders to claim the nullity and indemnities for damages by awards given in public tenders by means of a class action.

Also, in April 2019, a legislative proposal was submitted to modify various provisions of the Federal Law of the Rights of Children and Teenagers. Among others, these modifications would allow filing class actions against the media when they disseminate information that could imply the sexualization of minors.

None of these legislative proposals have yet been approved by Congress.

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