Skip to main content

Maritime Law--Latin America and Legal Reform? Is it Possible?


A few reports have come out that question recent legal and litigation reform in Latin America. The first comes from Mexico, where 337 mostly foreign-owned sailboats and yachts at 11 marinas around Mexico were impounded. While nearly half of all vessels have been freed, as of earlier this year, over 100 remain impounded, tied up in red tape and confusion in raids that initially seemed aimed at rooting out tax cheats and boat thieves. Mexico's Tax Service Administration, the equivalent to the U.S. Internal Revenue Service, said in a statement that "the republic reiterates its commitment to promote legality and support tourism...for the benefit of Mexicans." Many foreigners had to scramble to prove that they were the rightful owners of their vessels, as well as the vessel's legal status in Mexico. In Mexico, boat owners are not required to pay tax or duty if they have a 10-year Temporary Import Permit, which costs around $50.
 
 
The second report relates to companies doing business in Latin America generally. The U.S. Chamber Institute for Legal Reform ("ILR") reports that companies doing business in Latin America face an enhanced risk of lawsuit abuse in the region under proposed changes to the countries' court systems. In "Following Each Other’s Lead: Law Reform in Latin America"  and "Class Action Evolution: Improving the Litigation Climate in Brazil,"  the ILR found that potential judicial reforms in Argentina, Brazil and other Latin American nations could leave businesses at a significant disadvantage as defendants, greatly tilting the courts in favor of local plaintiffs.

The first report states that countries in the region look to each other for guidance on their judicial processes and have adopted the view that a consumer is at a disadvantage when that individual challenges a business in court. The report further notes that the legislatures in Argentina, Brazil, Costa Rica, Ecuador and Mexico have pending bills to either alter their class action systems or replace them. The second report highlights the fact that Brazil is considering changing class action rules that would either increase the number of the class action lawsuits or weaken protections that ensure proceedings are predictable and unbiased.
 
These two reports serve as a warning to companies. Foreign companies should watch out for proposed changes to class action litigation in Latin America and the ripple effect this will have on business. In addition, if these current proposals are implemented, they could have costly, unintended economic consequences for many Latin American countries.
 

If you are interested in receiving either the report on Mexico's seized vessel policy or on the legal reforms planned for many Latin American countries or wish to contact me in general, please write to me at mov@chaloslaw.com.

Comments

Post a Comment

Popular posts from this blog

ReThink + ReUse Center "It's How We Roll" Fun Raiser -- Bowling Night -- October 16, 2014

As many of my readers may be aware, I am the Chair of the ReThink + ReUse Center, a non-for-profit educational and environmental Center in Miami educating children into rethinking reuseable materials for learning through play. The ReThink and ReUse Center’s Quality Play is Learning Program provides a series of educational and participatory workshops based on the philosophies of Reggio Emilia and Harvard's Project Zero Visible Thinking. The Children’s Trust is the major funder of this program, but the Center is required to continually fundraise for the balance its annual budget.   The Center is having a fun event you are invited to--the ReThink + Reuse Center’s “It’s How We Roll” bowling event on October 16, 2014 at Splitsville Luxury Lanes from 18:00 to 21:30 hours. My firm, Comcast and Waste Management are major sponsors for this event, but we could use a few more sponsors. If you are interested in sponsoring the event, please let me know by reaching me at mov@chalos...
6 comments
Read more

Maritime Law--Florida's Arbitration Code Is Now Revised

Those of us that practice maritime law regularly must always be on the lookout for the contract that may contain an arbitration clause. Thus, any laws related to arbitration are important to those of us practicing in this sector.       The Florida legislature has revised the Florida Arbitration Code ("FAC") and named it the Revised Florida Arbitration Code (the " Revised Act"). Since 1967, the FAC had gone mostly unchanged. The Revised Act addresses concepts that were not addressed in the old law, such as the ability of arbitrators to issue provision remedies, challenges based on notice, consolidation of separate arbitration proceedings, required conflict disclosures by arbitrators, among other major changes. The Revised Act lays out a detailed framework for international arbitration conducted under Florida law and repeals sections of the FAC. The Revised Act spells out what experienced arbitrators knew the case law to be, but codifies it all in one pl...
4 comments
Read more

Maritime Law--Lozman Case Revisited in Miami?

In Hoefling v. City of Miami , Case no.: 14-12482 (11th Cir. Jan. 25, 2016), the U.S. Court of Appeals for the Eleventh Circuit revived almost all of Hoefling's claims. You ask, "Who is Hoefling?" Hoefling  lived on his sailboat Metis O moored off Dinner Key for nearly a decade—until the day he came home and it was gone. About three months earlier, an officer from the Miami Police Department's Marine Patrol Detail tagged Hoefling's vessel for lacking a sanitary device and a working anchor light. He had a deal to use the facilities at the nearby marina but quickly went out and reportedly bought what he needed to comply. Three months later while he was on a business trip, the City of Miami seized and destroyed his boat and all his belongings. As a result, he was homeless. He sued under § 1983, maritime law, and state law. He stated a claim under the Fourth Amendment for seizure and destruction without notice or cause and a “taking.”    At the ...
5 comments
Read more