Litigation & ADR annual report
Consequently , the Supreme Court in Spain has an important role to play in “ closing the gates ” and stopping more such claims , he says . There is a “ certain public suspicion ” of financial institutions , says Linklaters partner Borja Fernández de Trocóniz . He adds that this mood has led to a wide variety of claims against all kinds of financial products , even of the “ plain vanilla ” variety . Fernández de Trocóniz also says that real estate litigation is a growing trend . According to Fortún , with regard to class actions , Cuatrecasas has a pool of lawyers across Spain which it uses to handle claims . He adds that class actions are raising issues with regards to the “ type of work we accept in order to ensure that clients get added value ”.
The next wave of claims will relate to expenses clauses and the Supreme Court is “ opening the doors to this ,” says Allen & Overy partner Javier Mendieta . He adds : “ For example , clients are looking at expenses incurred when they were granted mortgage deals .” Mendieta says that mass litigation will continue because it is cheap in Spain and “ everyone [ involved in those type of lawsuits ] thinks they will win ”. He says another current trend in litigation is claims for damages related to infringements of competition law .
Managers at companies in Spain have to be educated about the benefits of mediation , according to some lawyers . However , one partner argues that clients are now “ more willing to listen and learn about how mediation works ”. The partner adds that , in 2016 , there was an increase in the number of construction-related cases where parties considered mediation . But other lawyers argue that there needs to be a change in the law before parties in Spain begin to start using mediation – however , this is unlikely to happen soon as it is “ not currently a priority ” for Spain ’ s Ministry of Justice , one partner says .
There is huge competition for dispute resolution work among law firms in Spain . Major corporations are more likely to put work out to tender , lawyers observe , and this is added to the fact that increasingly , procurement professionals at companies are responsible for buying legal services rather than general counsel , the problem being that procurement professionals may have a less detailed understanding of legal services than in-house lawyers . As one partner comments : “ When I started , clients were loyal to one law firm , but now clients want three or four offers . Law firms now have to adapt their cost structures as they need to maintain their margins , partners need to be involved in matters and this is more expensive – when we talk to people within companies [ responsible for buying legal services ], they often know nothing about law .” As a consequence , such companies often base their buying decision purely on price . One partner at a leading
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There has been a fall in banking litigation as well as a decline in insolvency cases .
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Francisco Málaga Linklaters
international firm in Madrid comments : “ They only realise their mistake when things go south and they find the work they did was shoddy ; choosing the cheap solution may end up being more
Spain : What are currently the biggest opportunities for law firms in litigation & ADR ?
“ We see arbitration as an excellent avenue for solving disputes abroad – it offers an excellent opportunity to defend our clients in international disputes , especially in energy and infrastructure .” Eduardo Soler-Tappa , partner , Herbert Smith Freehills
“ More litigation activity related to the foreign trade sector – it is certain that opportunities in related litigation areas will increase , such as arbitration and international procedural law .” Fernando González , partner , Squire Patton Boggs
“ Increasing efficiency by using technology to make mass litigation cost efficient . Adding value for our clients , and taking a proactive rather than a reactive approach .” Beatriz Rúa , partner , KPMG Abogados
“ Offering services related to mediation and other ADR , with the idea of satisfying clients requirements in terms of efficiency , costs and time .” Silvia García López , partner , Deloitte Legal
“ As class actions are restricted in Spain , there are many funds which offer litigation funding .” Jordi Ruiz de Villa , partner , Jausas
“ Collective and class actions are increasingly growing in Spain . Several big collective cases have been brought before the Spanish Courts in recent times , mostly in connection with banking products . In this regard , even though the current procedural rules and our legal tradition are not in line with this new trend , and are not suitable to foster this new type of litigation , the reality and market demand is impacting on the legal framework .” Yago Vázquez Moraga , partner , Pintó Ruiz & Del Valle
“ Corporate disputes , particularly with regard to mediation in family-run-businesses , and arbitration and mediation in disputes relating to contracts agreed between firms subject to different legislation .” Fernando J . García Martín , partner , AGM Abogados
“ We believe there are big opportunities to increase ADR , but the clients still prefer litigation against banks , which has been a major trend in the last 12 months .” Manuel Saez , partner , Casals Advocats
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