- The Council of Ministers created 93 new judicial units, in addition to the judge posts approved in March.
- There are new bodies in the civil, commercial, labour, criminal and administrative jurisdictions.
- More courts do not mean immediate resolution: it is worth knowing how and when each one starts operating.
On 13 October 2017 the Council of Ministers approved Royal Decree 902/2017 creating 93 courts and judicial posts, in order to adapt the judicial map to existing needs and guarantee citizens the effective protection of their rights. It was published in the official gazette on 16 October. To these are added the sixteen appeal-judge posts approved in March to make the second criminal instance effective, so that the total created for 2017 comes to 109 units.
By type, 46 courts of first instance, 21 courts of first instance and investigation, five criminal courts, one administrative court, seven labour courts, one penitentiary supervision court and six commercial courts are created. In addition, two judge posts are provided at the Provincial Court of Madrid for two civil divisions specialising in family law, and four existing courts are converted into another class, to adapt them to their workload. The specific territorial distribution of each new body is set out in the decree itself.
What kinds of courts
Most belong to the civil jurisdiction, with courts of first instance and of first instance and investigation, which resolve claims between individuals and companies, family matters and a large share of property disputes. The six new commercial courts deal with insolvency proceedings, company law, competition and industrial property, among other matters of particular interest to businesses.
The seven labour courts handle employment disputes: dismissals, claims for sums owed and disputes over social security benefits. In both cases, workload and resolution times are a concern for companies and workers, because a slow procedure makes the dispute more expensive and prolongs uncertainty about its outcome. For companies with many customers or employees, the average time to resolution translates into provisions and settlement decisions, which is why any reinforcement of the judicial map is followed closely in the business world.
When the changes will be felt
Creating a court by royal decree is only the first step. The start of operations of each unit is fixed afterwards by orders of the Ministry of Justice and requires premises, staff and resources. That is why the effect on resolution times is not immediate and can vary greatly from one city to another, depending on how quickly the new bodies are put into operation.
The Government presents the measure as a structural response to a heavier workload in certain areas, with the aim of reducing response times and the number of pending cases in each court. The result will depend on how many cases come in and on the effective staffing of each new body, something that can only be assessed over time.
What to review
For a company, the length of a lawsuit is a decision factor: it affects accounting provisions, cash flow and the advisability of negotiating. Before suing, or before answering a claim, it is worth asking how long the case may take in the competent court and what alternatives there are, such as mediation, arbitration or negotiation assisted by both parties’ lawyers.
It is also worth reviewing contracts: the jurisdiction or arbitration clause determines where disputes would be resolved and within what reasonable timescales. And keep documentation in order, because in any court a clear and well-evidenced file reduces time and costs. Your lawyer can advise you on the situation of the court that applies to you.
More judges help shorten lawsuits, but the best way to save yourself a lawsuit is to prevent it in the contract.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
