Can you please give us an idea of the work your team has done recently?

Some of the most relevant matters my team coordinated in 2021 were the successful payoff and termination of two loans for a combined amount of $76m mdd, and the release of the corresponding collateral. We also coordinated and implemented the subcontracting labor amendments, in response to the new subcontracting law and incorporated a non-profit organisation. Our team also acquired approximately 95 hectares of land within the East Cape region of Baja California Sur, México and managed a corporate restructuring.

Which recent political, economic or regulatory changes have impacted the company and the team the most?

Without a doubt, the change that has impacted my company and my team the most in 2021 was the decree that modified several laws on subcontracting (outsourcing and insourcing).

On April 23, 2021, a decree modifying several laws on subcontracting was published in the Federal Official Gazette, effective the next day i.e., April 24, 2021. It forbade the subcontracting of personnel, with an extremely limited timeframe of approximately four months for implementation, resulting in a restructuring of the company (and its subsidiaries) to meet these new requirements.

The latter represented a huge challenge to my team, since we needed to coordinate various departments within the company as well as external advisors, to adjust our corporate and employee structure accordingly. This included, among other things, the allocation of approximately 450 employees within 13 different internal companies, adjustment of the corporate purposes of such companies, execution of intercompany service agreements. We also started an incredibly challenging process of reviewing, analysing and amending, each service agreement executed by the company, to determine the type of services rendered, the specific legal requirements that are now required and to adjust the agreements as needed to comply with the new subcontracting legal requirements.

Even in the best-case scenario, Covid is likely to have far-reaching ramifications. How are you safeguarding the long-term health of the business?

Certainly, Covid has had an impact in the tourism and real estate industry, such as construction and hotel services restrictions, coupled with restrictions to the work schedule of local authorities (permits, licenses and more) which limited at some point our ability to work on an ordinary basis. However, with the proper compliance of federal, local, and internal protocols, as well as the privileged and isolated geographic location of our Costa Palmas® development, we have managed to blunt that impact and hence, provide a safe environment for our customers, guests, and employees.

Does the team use any “legal tech” products, and do you find them a helpful management device?

Due to the number of service providers we need to engage, we have an extremely helpful legal tool for the payment of invoices, which is Serengeti or Legal Tracker®. This tool helps us to automate manual tasks and have visibility into all aspects of a matter, from initial intake to final invoice. Legal departments will and already are experiencing technological disruption. In-house lawyers are no longer solely law interpreters or legal opinion providers, but real managers of internal and external legal resources and processes.