In September 2016, there was a major shift in the Mexican Supreme Court’s approach to damages, where the highest court in the country ruled on the legality of punitive damages. In April 2020, federal courts made pivotal changes in litigation, where companies doing business in Mexico should not only be concerned about compliance with the Federal Labor Law (FLL), but also be mindful of tort claims.
In recent precedents (May-June 2022), Mexican federal courts confirmed that companies are not released from liability vis-a-vis their employees solely by paying their social security contributions for labor hazards or accidents or by paying their severance obligations. The courts have sustained that in addition to labor-related complaints, those claims addressing personal injury or pain and suffering in the workplace, which may include wrongful termination, are also subject to tort actions filed with civil courts. It may be worth noting that, as opposed to the parameters set forth under the FLL where the employer’s liability is capped, torts are not subject to a monetary threshold. In addition, courts have also ruled that in certain cases related to tort claims, specifically filed against an employer for personal injury or pain and suffering, the burden of proof may shift from the claimant (i.e., the employee), to the defendant (i.e., the company).
This new approach undertaken by the Mexican federal courts underscores the importance of our prior recommendations consisting in...
An urgent care and its owner have agreed to pay the United States $20 million to resolve false claims billing. Heal 360 Urgent Care PLLC, Heal 360 Primary Care PLLC and its owner, Dr. Moh...