Commercial disputes can arise in any business relationship—over contracts, payments, partnerships, or IP. In Spain, companies have multiple legal options for resolving disputes, from civil litigation in the courts to alternative dispute resolution (ADR) mechanisms like arbitration or mediation.
This guide explains the legal pathways for resolving business disputes in Spain, including timelines, procedures, and strategic considerations for foreign companies.
⚔️ Common Business Disputes in Spain
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Breach of contract
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Non-payment or delayed payment
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Shareholder or partnership disputes
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IP infringement
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Misrepresentation in M&A transactions
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Termination of distribution or agency contracts
🏛️ Litigation in Spanish Commercial Courts
📝 Jurisdiction
Business disputes are typically handled by Commercial Courts (Juzgados de lo Mercantil). If the claim exceeds €6,000, a full trial process applies.
📅 Timeline
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Pre-trial demand: Optional, but recommended
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Filing a claim: Must be supported by evidence and legal grounds
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First hearing: Often occurs within 6–9 months
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Final resolution: Typically 12–18 months
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Appeals possible at the Provincial Court and in some cases, the Supreme Court
🧾 Evidence & Discovery
Spain does not have broad “discovery” like in common law jurisdictions. Each party must bring its own documents and witnesses. Court-appointed experts may be used.
🤝 Alternative Dispute Resolution (ADR)
1. Arbitration
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Common in international contracts
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Binding, private, and faster than litigation
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Can be handled by institutions such as CIAM (Madrid), ICC, or CAM (Barcelona)
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Awards are enforceable in Spain and abroad under the New York Convention
2. Mediation
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Voluntary and non-binding
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Encouraged by Spanish law and courts
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Especially useful for ongoing commercial relationships
📜 Clauses to Include in Contracts
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Jurisdiction clause: Which court or arbitration body will resolve disputes
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Governing law clause: Spanish law or another jurisdiction
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Language of proceedings: Spanish, English, or both
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Arbitration clause: Recommended for international transactions
💡 Strategy Tips for Foreign Businesses
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Use bilingual legal support to navigate Spanish procedures
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Consider mediation before formal litigation
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Enforceable contracts with clear clauses can avoid expensive disputes
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Arbitration may offer more privacy and speed than court
🤝 How Borderless Lawyers Can Help
We support businesses in:
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Drafting strong dispute resolution clauses
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Negotiating or mediating commercial disputes
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Representing companies in litigation and arbitration
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Enforcing judgments and arbitral awards in Spain