SPAIN Law and Practice Contributed by: Jose Piñeiro, Natàlia Ros and Laura Martín, Cases & Lacambra
However, as regards the existing limits on such rem - edies, it is necessary to specify that punitive damages do not exist in Spain and, consequently, it could be understood that they are contrary to public policy. 10.3 Recovering Interest and Legal Costs Pursuant to Article 37.6 of the SAA, the arbitrators’ award on the costs of the arbitration shall include the following: • the fees and expenses of the arbitrator and, if applicable, the fees and expenses of the defence and of the representatives of the parties; • the cost of the services rendered by the arbitration institution; and • all other expenses incurred within the arbitration proceedings. Also, the payment of legal interest concerning the principal sum awarded is generally imposed. Unless otherwise agreed by the parties, the arbitrators shall decide on the distribution of the costs generated by the arbitration proceedings. Thus, the arbitrators can decide whether to distribute the costs depend - ing on the costs incurred by each party, or whether one party should compensate the other for the costs incurred. According to Article 41 of the SAA, an award may be set aside if any of the following circumstances is proved: • The arbitration agreement does not exist or is invalid. • It has not been possible to give proper notice of the appointment of an arbitrator or of the arbitral proceedings, or a party has not been able to assert its rights. • The arbitrators have ruled on matters not submit - ted to their decision. • The appointment of the arbitrators or the arbitra - tion proceedings have not been in accordance with the agreement of the parties, unless such agree - 11. Review of an Award 11.1 Grounds for Appeal
ment would be contrary to a mandatory rule of the SAA, or, in the absence of such agreement, they have not been in accordance with the SA. • The arbitrators have ruled on matters not subject to arbitration. • The award is contrary to public policy. The party requesting the award to be declared null and void must file a claim with the high court of justice of the Autonomous Community in which the award has been rendered. Generally, the application for annulment of the award may be filed within a maximum period of two months from the date of receipt of the award by the applicant party. However, when one party (or both) applies for rectification, clarification or supplementation of the award, the time limit will begin from the date of receipt of the decision on the application by the applicant party or from the date of expiration of the time limit for deciding on the application. The annulment action will be substantiated through the channels of the verbal proceedings, but with the following particularities: • The claim must contain the documents supporting the claim, the arbitration agreement and the award, and, if applicable, it shall contain a proposal for the measure that is of interest to the plaintiff. • The time limit for replying to the appeal by the opposing party shall be 20 days and must contain the means of proof for the measure that is of inter - est to them. 11.2 Excluding/Expanding the Scope of Appeal The SAA does not regulate the possibility of exclud - ing or expanding the scope of appeal of the awards since, in the Spanish legal system, there is no sec - ond instance in arbitration matters. Instead, there is the possibility of filing an action for annulment on the grounds set out in the law, which in no case affects the merits of the case. Thus, the voluntary submission of the parties to arbi - tration has the consequence that the possibilities for
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