After analyzing the resolution recently issued by the Court, we want to inform you that unfortunately they resolved that the motion we filed based on the violation of hearing and due process rights of Vee Rubber was inadmissible under a legal truth that was considered by the judges as the cornerstone of the dispute; when Mr. Jesus Moreno assigned the BILL OF EXCHANGE rights to Vee Rubber, was not properly notified to Magistroni, causing a tort against Magistroni, which means, under Mexican law Mr. Moreno should have notice Magistroni such assignment rights in a proper way.
Nevertheless, the Court safeguarded the right of Vee Rubber to file a new claim against Magistroni, which means, that the subject matter of this case will not be considered as "res judicata", leaving us the option to start the procedure again from its first step, notifying Magistroni such assignment.
Please find below the complete description of the procedure we carried out before Court, as well as the proper following steps:
1.- The claim at first stage was filed at the Local Commercial Courts of Mexico on June, 2013 demanding the payment of principal amount and legal interests.
*** It is important to note that the former law firm of Mr. Jesus Moreno demanded such payment based on wrong arguments, resulting in an adverse judgment for Vee Rubber. For CCA to file a new claim before Court, Mr. Moreno had to return such documents through a right assignment to Vee Rubber.
2. On March 2014, the Local Commercial Court issued a judgment against Vee Rubber under the arguments that the legal action was related to documents already prescribed. Then after, Vee Rubber filed an appeal against such negative ruling in the first stage.
3. Such appeal was admitted and analyzed by the Superior Court of Justice on March and resolved in favor of Vee Rubber, ordering Magistroni to make the payment and interests.
4. Nevertheless, Magistroni filed a constitutional motion before Federal Courts, demanding that the execution of the ruling of the Superior Court was suspended.
5. On February, the Federal Court resolved and ruled in favor of Magistroni under the argument that the assignment of documents from Mr. Moreno to Vee Rubber was not properly notified to Magistroni, harming their rights. The effect of this negative resolution for Vee Rubber was that the whole trial would start all over again to the first stage.
6. Against such resolution, Vee Rubber filed a motion before Federal Circuit Court by the end of February 2015, arguing that Magistroni was changing the matter at steak and that in any case Magistroni was informed about such assignment through the claim filed in the first stage.
7. The Courts resolution was recently issued against Vee Rubber, considering that in order to claim the payment, a proper notification must be made to Magistroni.
The following steps will be:
a) Through a voluntary jurisdiction (which is not considered as a dispute procedure), Vee Rubber requested a formal assignment notification to Magistroni carried out by Mr. Moreno in favor of Vee Rubber. ** Such notification will be carried out on October 26th.
b) Once the notification is done, a new claim will be filed before Court demanding the payment of BILL OF EXCHANGE documents. ** Approximately the first week of November.
We understand the whole process has delayed more than we expected. It is important to consider that the procedure terms are not exact; nevertheless, we consider that through the voluntary jurisdiction and a new complaint, it would take no longer than a year to have a positive resolution.
Should you have any concerns or doubts, please do not hesitate to contact us. We are available for a conference call if