Corona & Nepote

  Foreign judgments may be utilized in Mexico either: 1) as evidence, 2) as a binding resolution, or 3) as a resolution to be enforced. In the first case, the foreign resolution is utilized as evidence of facts but not of law, in the second as evidence of law (res judicata) , and in the third as a resolution to be enforced. The First Chamber of the Mexican Supreme Court stated that only in the third case, an exequatur proceeding is needed, while for the second case, a verification by the national court that the foreign judgment does not contravene public policy. [1] Is the allowance of claims a resolution to be enforced in the bankruptcy proceeding? or merely a declarative resolution? The answer to this question will determine whether the holder of a foreign judgment needs to start an exequatur proceeding before submitting it as proof of claim. A non-binding precedent from a High Civil Court of the Sixth Circuit states that the allowance of claims resolution is a resolution t...

In a guaranty, the guarantor assumes an obligation in favor of a creditor to pay in the place of the principal in the event of default (conditional, secondary obligation). A guaranty is a separate contract from the contract by which the principal assumed the obligation in favor of the creditor, though dependent and accessorial to it. Outside a bankruptcy event, the guarantor has the same defenses as the principal against the creditor. In case of payment to the creditor, the guarantor has the right to repeat against the principal. But in the event of the principal's bankruptcy, the rights of the guarantor are impaired substantially. The creditor can not demand payment to the guarantor if the obligation has not met its time of default. Upon adjudication in bankruptcy, the obligations subject to a term not due at the bankruptcy adjudication will be regarded as due. This anticipatory expiration of the debt takes force also vis-à-vis the guarantor; hence the creditor may demand pa...