The new Organic Law 1/2025 imposes the obligation to use dispute resolution methods before bringing a claim before the courts

As of April 3, 2025, Organic Law 1/2025 comes into force, introducing significant changes to the Spanish judicial system, particularly in the civil and commercial fields. The reform establishes the obligation to use alternative dispute resolution methods (MASC, the Spanish translation) before filing a claim in court. This measure aims to reduce the courts’ workload and promote the out-of-court resolution of disputes.

What are MASC methods?

MASC methods are mechanisms that allow parties in conflict to find a solution outside the courts, either through the intervention of a neutral third party or through direct negotiation. Organic Law 1/2025 outlines various resolution methods, such as mediation, conciliation, direct negotiation between the parties or their lawyers, confidential binding offers, expert determination, and collaborative law.

Condition of admissibility: the obligation to negotiate

One of the most important aspects of the reform is that, before filing any civil or commercial claim, the parties must attempt to resolve the dispute through an MASC method. This new regulation requires that, if no agreement is reached, the parties must prove that they have attempted an out-of-court solution before going to court. Otherwise, the claim will be declared inadmissible.

This change represents a challenge for both clients and lawyers, as it requires rethinking procedural strategy in a pre-litigation context. From now on, it will be necessary to assess which type of MASC is most appropriate for each case, considering factors such as time, cost, and the potential consequences of failing to reach an agreement. Additionally, an economic risk is introduced: if one of the parties refuses to participate in an MASC process without justification, they may be ordered to pay legal costs.

Affected proceedings

The new law mainly affects declaratory proceedings and special civil and commercial procedures, such as ordinary proceedings, oral proceedings, and those regulated in Book IV of the Civil Procedure Act. However, there are some exceptions that do not require this prior step, such as cases involving fundamental rights, filiation, or certain enforcement proceedings.

Effects of negotiation

Another key point of the reform is that the request to initiate negotiations interrupts the limitation period or suspends the expiry of legal actions, allowing the parties additional time to reach an agreement without losing their procedural rights. If the MASC process ends without an agreement, the negotiation is considered closed after certain periods without progress, such as 30 days without a response or 3 months without reaching an agreement.

Confidentiality and documentation

To ensure the effectiveness of MASC, the law establishes that all documentation and communications exchanged during the process are confidential and cannot be used in subsequent court proceedings. To prove compliance with the requirement to attempt an out-of-court resolution, the parties must submit documents certifying their participation in the MASC process, such as a document signed by both parties or a report from a neutral third party.

Practical consequences and reflections

The Organic Law 1/2025 marks an important change in how lawyers and clients must approach civil and commercial disputes. Instead of going directly to court, they are now required to attempt to resolve their differences through alternative methods.

Despite the good intentions of the reform, its practical impact may be limited in the short term. The culture of negotiation in Spain is still developing, and many clients may view MASC as a mandatory step before being able to bring a claim in court, rather than as a genuine attempt to reach an agreement. Moreover, parties who refuse to negotiate may resort to delaying strategies, knowing that judicial proceedings can take years due to court congestion.

In the long term, if courts strictly apply the law, the obligation to resort to MASC could foster a stronger culture of negotiation in the legal field, making it a more common practice for resolving disputes before reaching the courts. However, a gradual change in mindset among lawyers and clients will be necessary for MASC to become a truly effective alternative to litigation.

Drafted by: Arc Associats

First publication date: March 27, 2025