Issue #
February 2009

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Extension of Benefits by the Mexican Social Security Institute (IMSS) for Unemployed Workers

February 18, 2009

On January 7, 2009, Mexican President Felipe Calderon issued the National Decree to Benefit Family Economics and Employment for Family Well Being(the “Decree”). The Decree seeks to protect jobs and support family income. Among other aspects, it extends Social Security coverage to unemployedworkers. Retroactive to January 1 st , employees are entitled to medical and maternity coverage from the Mexican Social Security Institute, which coverage hasbeen extended from two to six months for workers who have lost their jobs, and for their dependents. To pay for the referenced increase in benefits, Mexico’sFederal Government will provide up to 2.6 million pesos. In accordance with the Decree’s provisions, the IMSS will publish specific rules for implementingthe program in the Official Journal of the Federation (Diario Oficial de la Federación), including among others: (i) the extension of the period for preservingthe rights of workers for sixteen additional weeks, on top of the eight weeks prescribed by law, so that those beneficiaries will be insured from January 1 stthrough June 30, 2009, which extension will include medical/surgical, pharmaceutical and hospitalization assistance; (ii) establishing the requirement that theemployees be registered immediately and uninterruptedly before the IMSS for at least eight weeks in order to receive such benefits; and (iii) instructions tothe IMSS Department of Finance to agree with the Mexican Department of Finance and Public Credit on the mechanism to provide IMSS with sufficientresources to pay for the additional cost generated from such extension of medical coverage.

Amendments to Real Property Boundary Delimitation Procedures in the State of Nuevo Leon

February 18, 2009

A reform to the State of Nuevo Leon’s Code of Civil Procedure was recently published in the Official Periodical of the State of Nuevo Leon that allowsparties to carry out boundary delimitation proceedings before a notary public, so long as no controversy exists among the neighboring property owners. If anyone of the neighboring property owners opposes the proposed boundary delimitation, the notary public must suspend his or her work so that the case may besubmitted for a corresponding proceeding before Mexican judicial authorities. The boundary delimitation proceeding is necessary when the boundaries of aproperty have not been fixed, or if such boundaries are not exact and must be corrected. Prior to the recent reform, the boundary delimitation proceedingcould be undertaken only before a Mexican judge. The new reform seeks to inject procedural efficiency into real property matters where no conflict amongneighbors exists.

New Requirement for Recognition and Execution of Foreign Judgments in Mexico

February 18, 2009

On December 30, 2008 various provisions of the Mexican Commerce Code (Código de Comercio) and Federal Code of Civil Procedure (Código Federal deProcedimientos Civiles) were amended in regard to requirements for recognizing foreign judgments in civil and mercantile cases in Mexico. The amendmentestablishes that “a foreign Judge or tribunal is not competent when, in the legal acts leading to the decision that is sought to be executed, a clause existsproviding for submission of the matter solely to the jurisdiction of Mexican courts”. This reform seeks to provide definitive guidance on the execution ofjudgments issued by foreign courts (principally from the United States of America), based on any point of contact, in order to understand and resolve suchmatters, notwithstanding the fact that the parties in the dispute have submitted themselves to the jurisdiction of Mexican courts and, later, one of the partiesseeks to execute the judgment in Mexico. It is important for litigants in these disputes to decide in which country to file a given case in order to secure theexecution of the judgment resulting from such case.

Recent Case Decision – Verifying Merchandise in Transport for Customs Purposes

February 18, 2009

The Second Chamber of Mexico’s Supreme Court recently approved case decision 2a./J.197/2008 under the following caption “Verification of Merchandisein Transport for Customs Purposes. If the authorities decide to transport goods to a determined site for further inspection, the authorities must prepare awritten record at the time such goods are transported for inspection”. In its holding, Mexico’s highest court stated that for the purpose of guaranteeing duerespect of applicable law, the authorities must prepare a written record with timely verification that they have noted the circumstances of the motortransportation, as well as the time and place where the facts took place, without prejudice to the fact that the inspection will be suspended until the goodshave been transferred to a tax bonded warehouse (recinto fiscal), where the inspection will take place as quickly as possible to determine whether any furtherproceeding must be undertaken. Notwithstanding the above, it may not always be possible to prepare a written record detailing irregularities that may giverise to a customs proceeding at the time the existence of such goods is discovered, in which case such written record must be prepared at the time thecorresponding inspection is carried out.