Organic Law 1/2025 dated January 2, on measures to improve the efficiency of the public justice system, requires parties in most civil and commercial cases to attempt a Non-Judicial Dispute Resolution Mechanism (MASC) before filing a lawsuit, except in specific cases. This is now a prerequisite for bringing a claim.

A MASC is any type of negotiation process where the parties try to resolve a dispute outside of court, either on their own or with the help of a neutral third party. Key points include:

  • The parties, the subject of the negotiation, and the dispute must be the same.
  • The process is guided by the principle of private autonomy, but all laws, good faith, and public policy must be respected.
  • Matters that cannot be freely negotiated (non-dispositive) are excluded.
  • Agreements can be full or partial.
  • If there’s a disagreement on which MASC to use, the one proposed first takes priority.
  • If a lawsuit is filed for the same matter, the parties’ cooperation in the MASC will be considered and can affect legal costs.
  • The negotiation process and any documentation are confidential (unless needed for verification), except in these cases:
  1. There’s a written exemption.
  2. Challenging costs or seeking moderation.
  3. Requested by a criminal court judge.
  4. Public safety, child protection, or prevention of personal harm.

Types of MASC

1.-Mediation (Article 14)

Parties may be assisted by lawyers and must pay any associated fees.

2.-Negotiation

Can be direct between the parties, assisted by their lawyers, or through appointed lawyers. Typically lasts 30 days to 3 months.

3.-Conciliation (Articles 15–16)

Can be private or public. Public conciliation may be handled by a notary, registrar, LAJ, or judge. The conciliator must meet certain requirements and will: Hold an initial briefing session, draft a record of the start of conciliation, suggest possible solutions and prepare a final record showing whether an agreement was reached.

4.-Confidential Binding Offer (Article 17)

Legal assistance is required unless the claim is under €2,000 or governed by sector-specific law. The offer must remain open for at least one month. If rejected, a lawsuit may be filed. Once accepted, the offer is binding and irrevocable.

5.-Independent Expert Opinion (Articles 12–13)

Parties may jointly appoint an independent expert to provide a non-binding opinion on the dispute. The opinion is confidential.

6.-Collaborative Law (Article 19)

A structured program where parties, supported by legal professionals and neutral experts, work together to find a mutually agreeable solution. At the end, a Final Record documents all participants, circumstances, and whether an agreement was reached.

Effects of MASC

Requesting a MASC pauses deadlines and prevents claims from expiring until the agreement is signed or negotiation ends without success.

If negotiation fails, a lawsuit must be filed within one year.

Negotiation efforts must be documented.

Agreements must include participant details, date and place, obligations, and procedure followed, and be signed by all involved.

Agreements are binding, have the effect of res judicata, and prevent filing a claim on the same matter. They may also be converted into a public deed.

Exceptions

Some cases do not require MASC, such as fundamental rights protection, certain family matters (like filiation), urgent measures under Article 158 of the Civil Code, or summary possession disputes.

MASC is not required for executive claims, pre-claim precautionary measures, or certain voluntary jurisdiction proceedings, among others specified by law.

For further information or advice, the procedural team at addwill is available. You can contact us by clicking here.