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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

The challenge

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.

Our approach

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.

The result

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.

Prior results do not guarantee a similar outcome. Every matter turns on its own facts, contract, and jurisdiction.

Facing something similar?

Your situation deserves the same rigor.

Every case is different, but the methodology holds: strategic pressure, credible escalation, recovery.

Nullity of abusive arbitration clause — PeninsuLawyers