Civil litigation
Nullity of abusive arbitration clause
Developer's contract forced arbitration in their hometown forum. Got the clause struck down — opened the door to PROFECO and civil action.
Recovered
$112K
Duration
19 months
Outcome
Favorable settlement
What the client was facing.
Client's contract included a binding arbitration clause requiring all disputes to be resolved in a Mexico City arbitration center handpicked by the developer — geographically inconvenient and historically friendly to that developer. Our client wanted PROFECO conciliation, which the developer claimed was barred.
The strategy we deployed.
Filed a juicio de nulidad de cláusula abusiva under LFPC, arguing the clause violated consumer-protection provisions. Won the nullity ruling. Refiled the underlying dispute in PROFECO with the arbitration barrier removed.
How it ended.
PROFECO conciliation produced a favorable settlement of $112,000 USD plus rescission of the binding arbitration clause for all future disputes. Precedent now used to challenge similar clauses by other developers.
Your situation deserves the same rigor.
Every case is different, but the methodology holds: strategic pressure, credible escalation, recovery.