Dispelling the Mexican Entrepreneur's Myths of Doing Business in America
Dispelling the Mexican Entrepreneur’s
Myths of Doing Business in America
… Notes from a Texas Litigator
MABA-TX Summer CLE Conference August 2, 2013
Why is this relevant today?
GROWING TEXAS ECONOMY:
Overall, US-Mexico trade over $1B daily!
Port of Houston: largest foreign tonnage port
Oil & Gas: Booms throughout Texas
Crime in Mexico: Motivating Mexico’s wealthy
and business owners to branch out or set roots in different pockets of
Increased Opportunity on Many Levels
Mexican Entrepreneurs Looking to Invest Money Here
Creation of New Businesses in a Robust Economy
Setting up U.S. affiliates to expand operations in Texas
Seeking investment vehicles to take advantage of immigration visas for
residency and/or citizenship
Real Opportunities for Lawyers Serving this Market
Immigration law opportunities, Small to Middle Market Transactional
Lawyers, Business Litigators to Counsel Clients on Risks and Liability
Clients will come to lawyers with certain conceptions about the U.S.
Legal System, presenting lawyers an opportunity to manage their
Lawyers can become a trusted guide in a perceived litigation minefield
“I don’t need legal counsel for every aspect of my
Reality No. 1: Legal counsel necessary for every step of business:
formation/corporate transactions, finance and capital formation, real
estate, employment matters, and business disputes.
Reality No. 2: Do business at your own risk; best friends will be: your
banker, accountant, and lawyer
Myth (or misconception) No. 1
Myth (or misconception) No. 2
“Lawyers and the legal system can’t be that much
different from those in Mexico”
Reality No. 1: American legal system is much different than the Mexican legal
system. And no you can’t ask a judge to throw a breaching party in jail.
Reality No. 2: U.S. Lawyers are very specialized and often you need different
lawyers for different questions.
Myth (or misconception) No. 3
“In a business friendly environment like Texas,
disputes should be resolved rather fast and easily”
Reality No. 1: Litigation process is more complicated than it appears as there are
many steps in the process. For example, a demand letter is not that simple; and
often, that’s just the beginning.
Reality No. 2: Litigation is much more intrusive than in Mexico and often requires
disclosures and discovery to which businesses are not accustomed in Mexico
Reality No. 3: Cost of litigation is rising exponentially due to various factors: e-
Discovery, Litigation Holds/ Spoliation concerns, rising costs of arbitration
Texas: Still a Land of Opportunity for Mexican
Entrepreneurs who can manage risks with proper and
strategic legal counsel