The Real Audiencia of Mexico (Spanish: Real Audiencia de México) or high court was the highest tribunal of the Spanish crown in the Kingdom of New Spain (not to be confused with the Viceroyalty of New Spain— named after the kingdom—which had a higher hierarchy and controller). The Audiencia was created by royal decree on December 13, 1527, and was seated in the viceregal capital of Mexico City. The First Audiencia was dissolved by the crown for its bungling and corruption and the crown established the Second Audiencia in 1530. Another Audiencia was created in Guadalajara in western Mexico in 1548.
Assertion of Royal Control After the fall of Tenochtitlan in 1521 conqueror Hernán Cortés exercised power in New Spain as its first European governor and proceeded to allocate rewards to Spaniards who had participated in the victory. He initially established a government in the town of Coyoacán, south of Lake Texcoco, because Tenochtitlan was in ruins after the conquest. From here he governed with the title of Captain General and Justicia Mayor. In his letters to the king, he explained and justified his actions, arguing that it was necessary to grant rewards of encomiendas to conquerors in order to persuade them to remain in the area now under Spanish control rather than see them depart for conquests elsewhere.
The crown sent treasury officials to New Spain, asserting the right of the crown to the revenues from the newly conquered lands. During Cortés's expedition to Honduras (1524–26), treasury officials were left in charge and the political situation descended into chaos. After Cortés's return to Mexico City in 1526, the crown realized that to assert its power over him that a higher level of royal authority was needed and created the Audiencia of Mexico.
The first Audiencia in Mexico was created in 1528 and headed by crown official Nuño Beltrán de Guzmán. Hernán Cortés, who as leader of the Spanish conquest of the Aztec Empire, had accrued considerable wealth and power after the conquest that was not effectively checked by crown treasury officials. By setting up the Audiencia the crown sought to limit Cortés's personal power by creating the high court as an effective instrument of royal power.