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.
Prior results do not guarantee a similar outcome. Every matter turns on its own facts, contract, and jurisdiction.
Your situation deserves the same rigor.
Every case is different, but the methodology holds: strategic pressure, credible escalation, recovery.