It has now been almost a year since Organic Law 1/2025 on procedural efficiency came into effect. Designed to ease the load on the judicial system, the law generally requires parties in a dispute to demonstrate that they have met procedural prerequisites before they can take their case to court.
This means that, to access judicial protection, parties must first pursue one of the alternative dispute resolution options provided by the law, such as private conciliation, confidential binding offers, independent expert opinions, collaborative law procedures, mediation, or notary-led conciliation, among others.
While there is still much to learn about the law’s precise scope and its potential benefits or drawbacks, the first year of application has highlighted the importance of choosing the right dispute resolution method for each situation. Factors such as the parties’ relationship, the sector, specific circumstances, the profile of the contracting parties, and the type of project should all be considered when making this choice.
Given these considerations, it may be advisable in some cases to include a clause in the corporate by laws specifying submission to a particular alternative dispute resolution method, with the procedure and conditions clearly outlined. The same approach is also recommended when negotiating certain contracts, including shareholders’ agreements.
At addwill, our Commercial Department can help assess and identify the most suitable approach for your specific needs in this area.