SPAIN Law and Practice Contributed by: Daniel Jiménez García, SLJ Abogados
Practice The prevailing approach in international arbitration seated in Spain is costs follow the event, adjusted for relative success on the issues. Tribunals also weigh the parties’ procedural conduct, and unreasonable behaviour – excessive document requests, late evi - dence, unmeritorious challenges – is regularly reflect - ed in the allocation. Interest Interest is generally awarded on sums due, usually in euros where that is the contractual currency. Tribu - nals commonly apply the contractual rate where one is agreed, and otherwise the Spanish legal interest rate or a commercial rate, together with post-award interest at the enhanced rate applicable under Span - ish law to judicial decisions. There is no appeal on the merits. The only recourse against an award rendered in Spain is the action to set aside under Article 40 of the Arbitration Act, heard by the Civil and Criminal Chamber of the High Court of Justice of the seat. Grounds The grounds in Article 41 (1) are exhaustive: • the arbitration agreement does not exist or is inva - lid; • a party was not given proper notice of the appoint - ment of an arbitrator or of the proceedings, or was otherwise unable to present its case; • the award deals with matters not submitted to arbitration; • the constitution of the tribunal or the procedure was contrary to the parties’ agreement or, absent agreement, to the Act; 11. Review of an Award 11.1 Grounds for Appeal No Appeal on the Merits
institutional rules now extend that window: the CEA Rules in force since 1 January 2026 allow 15 days. 10.2 Types of Remedies Wide Remedial Powers The Arbitration Act does not restrict the remedies a tribunal may grant. Tribunals seated in Spain award compensatory damages, specific performance, declaratory relief, termination or rectification of con - tracts, injunctive relief and interest, subject always to the parties’ claims and the applicable substantive law. Punitive Damages Punitive damages are the principal limit. They are unknown to Spanish substantive law, which is com - pensatory in principle, and an award of punitive dam - ages would be vulnerable on public policy grounds if the seat is Spain or if enforcement is sought here. Loss of Profits Loss of profits claims deserve a practical note, because they generate a disproportionate share of annulment litigation in Spain. Tribunals routinely dis - miss such claims where causation or quantum is not proven – for example where the business made loss - es after the breach, where no evidence showed that performance would have produced a profit or where external factors intervened – and the Constitutional Court has now made clear that a reasoned dismissal on those grounds is not open to annulment. Ultra Petita Tribunals must also stay within the relief sought. An award granting more than was claimed risks annul - ment under Article 41 (1)(c) as a decision on matters not submitted to arbitration. 10.3 Recovering Interest and Legal Costs Costs Article 37 (6) of the Arbitration Act gives the tribu - nal discretion over costs, subject to any agreement of the parties. Recoverable costs include arbitrators’ fees and expenses, institutional fees, counsel’s fees, expert fees and any other expenses of the proceed - ings.
• the subject matter is not arbitrable; or • the award is contrary to public policy. Procedure and Time Limits
The application must be filed within two months of notification of the award, or of the decision on correc -
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