SPAIN Law and Practice Contributed by: Alfonso López-Ibor, Pablo Henriquez de Luna, Virginia Jover and Pedro Echeguren, Lopez-Ibor DPM
9. Damages and Judgment 9.1 Awards Available to the Successful Litigant A successful litigant may request and be grant- ed: • a declaratory judgment (ie, the acknowledg- ment of a right); • a judgment that confirms or denies a party to perform a specific act; • a judgment including an obligation to pay; • a judgment including an obligation to hand over something other than an amount of money; and Punitive damages are not contemplated in Span- ish law. Compensation for damages – either material or moral damages – is the general rule in Spanish law. Damages are calculated on the basis of the actual harm caused to the aggrieved party and include both the actual loss (damag- es) and the loss of profit that the party suffered which is duly evidenced. Spanish law does not allow compensation for future damages. • a judgment including a penalty. 9.2 Rules Regarding Damages The Spanish legal system allows the parties to agree on liquidated damages by the introduction of penalty clauses in contracts. However, when a penalty clause is included in a contract, the party that benefits from this cannot request additional damages compensation, as its compensation is limited to the amount agreed in the penalty clause plus any accrued interest, unless other- wise expressly agreed in the penalty clause. These clauses can be moderated by the court if deemed excessive and this allegation is made by the affected party.
The duration of proceedings depends on several factors, including the complexity of the case and the workload of the court, meaning that it can range between one to three years in the first instance.
8. Settlement 8.1 Court Approval
Court approval is not required for the settle- ment of a lawsuit, but it is advisable, since the approval renders it automatically enforceable in the event of a breach. 8.2 Settlement of Lawsuits and Confidentiality Parties to a proceeding may opt for the set- tlement of lawsuits to remain confidential by including a confidentiality clause in the settle- ment agreement. 8.3 Enforcement of Settlement Agreements As explained in 8.1 Court Approval , if the set - tlement has been validated by the court, it may be automatically enforced within the same pro- ceeding. On the other hand, it the agreement has not been subjected to the court’s approval, a new lawsuit must be initiated in order to compel the fulfilment of its covenants. 8.4 Setting Aside Settlement Agreements Under Spanish law, settlement agreements are not treated differently from regular contracts. If the court has validated a settlement and a party does not comply, the aggrieved party may ask the judge to enforce the settlement by using all the means possible until the agreement has been completed.
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