The Council of Ministers has approved the remission to the General Court of the Procedural Streamlining Measures Bill which will facilitate and streamline the functions of the Civil Court and Contentious Administrative Court, two fundamental Judicial Systems for economic activity. 

The bill introduces reforms aimed fundamentally at the simplification and elimination of unnecessary informalities in the Civil Process.  It also provides measures to prevent intentional delay and to limit excessive use of applications to the courts.  These measures have as their principal objective the rate of response of judges and courts.  Its general context is reform of procedural legislation to achieve a faster, more modern and more efficient system of administering justice. 

The Procedural Streamlining Measures Bill is a procedural reform that affects two jurisdictional systems of great importance for the economy.  The effects of improvements introduced will be seen with specific benefits for consumers and for small and medium enterprises as well as improving competence in the market. 

Among the measures proposed the following are the most significant measures:

Civil Justice System

In the Monetary Procedure (which is the procedure for claiming outstanding debts evidenced in writing) the limit of €250,000 is removed which brings the system in line with others in Europe.  This makes the procedure more flexible and one that has proven effective in debt claims in times of crisis like the one we are experiencing at present.

A significant change in regard to the Appeals System is the exclusion of the filing of an appeal to oral proceedings where the amount claimed is €6,000 or less, making the decision of the Court of First Instance final.  This safeguards the right of access to a judge while limiting unnecessary judicial applications and prevents having litigious claims open for years. 

It also eliminates time and expense spent in the processing and preparation of appeals as the appeals are announced and formalized in one document which also avoids unnecessary delays caused by the necessity for excessive paperwork and formalities.  Also of note in relation to the Appeals Process is that the role of the Supreme Court as a guarantor of equality is reinforced as well as its role as a court of Unification of Doctrine by increasing the minimum value of a case required to lodge an appeal in both Contentious-Administrative and Civil Systems.  The minimum threshold had remained unaltered since 1998 and 2000 respectively, it now changes from €150,000 to €800,000. 

The Special Procedures System has been extended to incorporate the concept of ´Renting´ (renting long term with the right to buy).   Special Procedures had previously been extended to provide the protection for similar contracts such as ´Leasing´, in regard to the recovery of goods leased. 

Contentious Administration

Significant Modifications have been incorporated to provide for the technical improvement and streamlining of Civil Procedure such as the elimination of unnecessary steps in the evidentiary phase, the eventual elimination of the requirement for a  hearing when the parties are in agreement or there is a more appropriate and clarified legal process providing interim measures for urgent cases.

The quantative limits required for recourse to the appeal courts have increased, from €150,000 to €800,000.  This incorporates in a more clear manner the Cassation interest as a mechanism of excluding appeals.  In this way the speeding up of the system is accomplished in two ways: firstly, decisions will be reached in a shorter period, secondly it frees up the channels of appeal from large volumes of applications allowing them to carry out their functions more quickly. 

Finally, in relation to the costs of the Courts of Unique or First Instance a criteria of time limits has been incorporated in relation to applications made to the court.  The court or judicial organ may use this criteria of seniority as justification for the  exemption or exclusion certain costs when the proceedings are concluded. 

Criminal Process

The Procedural Streamlining Measures Bill incorporates certain precepts of the Criminal Procedure Act which regulates the prosecution of legal entities or legal personalities, such as companies.  This concept had been introduced by reform of the Criminal Code by Organic Law 5/2010 which introduced a regime of criminal responsibility for Legal entities. 

This article is not intended to provide legal advice. For clarification or specific information, please contact us.