11. What legal recourse do I have in Mexico if buyer defaults payment?

There are several options available to pursue a collection in court, each according to a different strategy and dependent upon how the commercial transaction was conducted and documented.

You can either file a complaint for an ordinary proceeding or for an executive proceeding. If an executive proceeding is not available due to its strict nature and constraints, there is a preliminary proceeding available that can further enable the executive proceeding. There is also the possibility of obtaining a prejudgment judicial remedy but that will be discuss in a following question. For now, we will try to explain how these particular proceedings work:

· Ordinary proceedings. These proceedings accommodate for most of the cases where an international business transaction is disputed. This is mainly because they do not rely on a credit instrument or a special title document (título ejecutivo) and therefore, do not allow for immediate interim measures to secure proper execution of a final judgment unless, strict guidelines for prejudgment remedies are followed including the posting of a required bond. Some of the most important features of the ordinary proceedings include the fact that it's a relatively longer proceeding, it allows you more time and opportunity to prepare and request the admission of evidence in court, and it also provides wider opportunities to counterclaim.

· Executive proceedings. Plaintiffs find more reliable and comfortable to sue with an executive action rather than through an ordinary proceeding. Reasons are plenty. First of all, the special title (título ejecutivo) on which the proceeding is based creates a presumption that the claim exists and that it's legally valid, therefore, turning the burden of proof to the defendant. Secondly, the same title gives a preliminary certitude of the plaintiff's claims, allowing therefore, an immediate ex parte prejudgment attachment order without placing bond. Thirdly, it is rather a summary proceeding in which evidence admission and proposals are limited to the initial stages through complaint and answer's briefs. This makes for a shorter and faster proceeding in which a final resolution is usually going to be rendered in less time. The drawback to this proceeding is that is not always available to all creditors since they must account for a título ejecutivo, which can be a credit instrument, a judgment, or a judicial acknowledgment of debt -among other possibilities.

· Preliminary proceedings. The main purpose of a preliminary proceeding -within the collection process- is to obtain a judicial acknowledgment of debt that will enable an executive action instead of following an ordinary proceeding. It usually starts with a formal petition from creditor in which facts relating to the debt are stated and a subpoena or citation for debtor is requested. The court will setup a hearing date in which debtor will have to respond as to whether he owes the creditor or not. If debtor fails to show up at the time of the hearing, the Judge will consider the stated claim as legally acknowledged by debtor. The supporting documents to the acknowledged debt will constitute a título ejecutivo that can be enforceable through an executive proceeding.

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