In Spain, new laws effective from April 3, 2025, mandate the use of Alternative Dispute Resolution (ADR) methods before initiating civil or commercial court proceedings. This reform, part of the "Efficiency Laws," aims to streamline the judicial system by encouraging out-of-court settlements. Failure to attempt ADR can lead to the inadmissibility of a claim.
Key aspects of the new law:
Mandatory ADR:
Parties must attempt ADR processes like mediation, conciliation, or arbitration before filing a lawsuit.
Good Faith Effort:
Parties are expected to engage in good faith negotiations, potentially with a neutral third party, to resolve disputes.
Consequences of Non-Compliance:
Failure to attempt ADR or unreasonable refusal to participate can result in the court refusing to hear the case or even financial penalties.
Confidentiality:
The position of parties during ADR is confidential, but can be assessed when determining costs later.
Types of ADR:
The law encompasses various methods beyond mediation, including conciliation, expert determination, and confidential binding offers.
Impact on Agreements:
Parties should carefully consider including ADR clauses in new agreements, as they can offer certainty but may limit flexibility.
Ongoing Reform:
The law is part of a broader effort to modernize the Spanish judicial system, including technological improvements and changes to court structures.
In essence, the new law in Spain promotes a shift towards out-of-court dispute resolution, encouraging parties to explore amicable solutions before resorting to litigation.
In October 2020 I asked two Solicitors to help me with negotiations neither of them listened to me. One Solicitor gave advice to file a gender violence complaint. The other was "our" Solicitor in the property purchase and he did the "will" which would have given me financial protection if the partner died.
Unfortunately, there was no contract in place in 2020 that would have provided financial security when the relationship was terminated abruptly. Despite his written and verbal offers to share the value of the property 50/50 I was blamed, intimidated and threatened with illegal eviction.
The threats were verbally aggressive.
"Don't f*ck about with me, I'm in control, you do as I say, or I can throw you out onto the streets." Apart from shock and grief at the way the relationship ended, I was now in fear of the escalation of violence. Plus anger at the estate agent who I had instructed to market the property. She was meant to be a friend, she had called the ex partner to give him feedback, telling him I had said something negative. I had only spoke the truth.
Hopefully these new laws can help avoid litigation.
Litigation is time consuming, expensive, and stressful. Negotiations and a resolution should be quicker and both parties should be able to agree a solution.