Key Features at-a-glance:
Simplified and low-claim Arbitration Rules
The revised CAM Rules contain a new set of simplified arbitration rules for small claims, which apply to disputes where the amount claimed is no greater than MXN $3 million (approximately USD $150,000), or when the parties expressly agree to them.
Under the simplified rules, a sole arbitrator will hear the arbitration case, there are no Terms of Reference, there is no arbitration hearing (unless the parties agree otherwise or under exceptional circumstances), and the deadlines are narrower.
There is a specific Scale of Arbitration Expenses for this procedure.
Remote hearings and electronic communications
The revised Rules now expressly confirm that the hearings might be held in person, remotely, or hybrid, using information and communication technologies. Further, the revised Rules also confirm that the parties may file their communications through electronic means and that notifications may be made through electronic means.
Joinder of additional parties
The revised Rules addressed the joinder of additional parties. While the CAM Rules were previously silent on the issue, they now provide that the Parties can request the Secretary General to join a third party to the proceeding.
Appointment of tribunal secretaries
The revised Rules include a new set of provisions on tribunal secretaries. The arbitral tribunal, after consulting the parties, may appoint a tribunal secretary. CAM also launched the Guidelines for the Appointment of Arbitral Tribunal’s Secretaries.
Impartiality and availability of the arbitrator
The revised Rules clarify that arbitrators are obliged to confirm their availability and impartiality, besides their independence.
Third Party Funding disclosure
Parties must disclose any third-party funding agreement and the funder’s identity.
Increase in cost of the arbitration
CAM’s administration fee and arbitrator’s fee increased by 20% from the last Scale of Arbitration Expenses issued in 2011.
Request of urgent conservatory and interim measures
It is clarified that the request for urgent conservatory and interim measures shall be submitted along with the request for arbitration.
Model Clauses (modifications)
The standard model clause was modified by expressly indicating that parties shall refer to the seat, the language, and the law applicable to the merits.
A new model clause was included to expressly refer to the parties’ intention to choose the applicability of the simplified and low-claim arbitration rules.
Practice Tips for the Simplified and Low-Claim Arbitration Rules:
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Parties should be aware that the Simplified and Low-Claim Arbitration Rules automatically apply to disputes for amounts up to MXN $3 million (approximately USD $150,000) unless the parties explicitly opt out in the arbitration agreement.
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Similarly, parties should consider whether they may want to opt into the Simplified and Low-Claim Arbitration Rules for disputes with claims over MXN $3 million.
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The pending arbitration proceedings as of 1 December 2022, regardless of the amount claimed, will continue to be governed by the previous CAM Arbitration Rules.
For the complete set of the revised CAM Rules, please click here.
Authored by Omar Guerrero Rodríguez, Luis Enrique Graham, Eduardo Lobatón Guzmán, and Sylvia Sámano.
