đź’Ľ Introduction
Doing business in Madrid brings opportunity — but also risk. From contract breaches to shareholder disputes, legal conflicts can threaten your company’s operations and reputation. This guide explains commercial litigation in Madrid, who it affects, and how to protect your business interests in Spanish courts.
đź“Š 1. What Is Commercial Litigation?
Commercial litigation involves legal disputes between companies or business partners. Common cases include:
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Breach of contract
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Unpaid invoices
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Business partner disagreements
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Shareholder or board conflicts
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Unfair competition or IP infringement
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Franchise or distribution disputes
In Madrid, these cases are typically handled in Juzgados de lo Mercantil (Commercial Courts).
⚖️ 2. Who Can Bring a Commercial Lawsuit in Madrid?
You can initiate commercial litigation in Madrid if you are:
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A Spanish or foreign company
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A self-employed entrepreneur (autĂłnomo)
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A shareholder or partner with a legal claim
đź“Ś Foreign companies may also defend themselves in Madrid if being sued locally.
đź“ť 3. Key Steps in a Commercial Lawsuit
| Step | Description |
|---|---|
| Legal analysis & evidence | Contracts, invoices, correspondence |
| Pre-litigation negotiations | Attempt to resolve or settle |
| Filing the lawsuit (demanda) | Lawyer prepares claim and submits |
| Defendant’s response | 20 business days |
| Hearing in court | Oral arguments, evidence presentation |
| Judgment & possible appeal | Usually within 6–12 months |
đź“Ť Hearings are held at Madrid’s Commercial Courts, often near business districts like ChamartĂn and Salamanca.
đź’ˇ 4. Can You Avoid Court?
Yes — Madrid courts encourage settlement or mediation before litigation.
âś… Alternatives include:
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Out-of-court settlements
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Mediation agreements
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Arbitration, if agreed in the original contract
However, if a party refuses to cooperate, court litigation may be necessary to enforce your rights.
👨‍💼 5. Why You Need a Commercial Litigation Lawyer in Madrid
A Madrid-based commercial lawyer helps you:
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Analyze contract strength and risks
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Draft legal claims or defenses
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Represent you in court (and via procurador)
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Handle enforcement of judgments
💡 Bonus: Your lawyer can act under power of attorney if you live abroad — no need to appear in court personally.
🌍 6. Foreign Companies in Madrid: Common Litigation Issues
At Borderless Lawyers, we’ve seen foreign companies face issues like:
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Unpaid Spanish distributors
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Breach of exclusivity or licensing agreements
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Partner buyouts gone wrong
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Delayed project payments
📌 Spanish law generally favors what’s written in the contract, not what was said verbally — so make sure your paperwork is solid.
đź“© Conclusion & CTA
Commercial litigation in Madrid can be complex — especially if you’re operating across borders. The right legal team helps you resolve disputes quickly and protect your business’s future.
👉 Need help with a commercial dispute in Madrid?
Contact Borderless Lawyers for experienced litigation support tailored to foreign business owners and entrepreneurs.