Enforcement Proceedings in Spain: A Comprehensive Guide

Posted on Sep 23, 2024 in Law & Jurisprudence

Enforcement Proceedings in Spain

Office of the Execution

Review of the defendant and accompanying documents: Once the application is submitted with all necessary documents, the court issues an order containing the general order of execution. The following should be verified:

  • Presentation of budgets and procedural requirements.
  • In the case of judgments or arbitration, a 20-day waiting period from notification is required before ordering the release of execution.
  • The executive title is not affected by any formal irregularity.
  • Implementation acts are consistent with the nature of the title.

How Execution Should Be Released or Withheld

The execution order is shipped and appealed, meaning it cannot be fully enforced. The court will dismiss the execution application if the executive title meets all procedural requirements and enforcement actions are consistent with the nature and content of the title.

Contents (551.2)

The order should specify:

  • The person(s) to whom and against whom the execution is dispatched.
  • Whether it is dispatched jointly or severally.
  • The amount, if any, for which execution is dispatched, including all concepts.
  • Necessary details regarding the parties or the content of the execution.

Once issued, the clerk decrees the order on the same or the next business day. This decree shall contain:

  • Specific executive measures.
  • Measures for locating and investigating the debtor’s property.
  • The content of the payment to be made to the debtor.

The order authorizing execution cannot be appealed; however, opposition to the execution is possible. The court may dismiss the opposition if the execution meets all procedural requirements. Against the decree issued by the Secretary, a direct judicial review appeal may be filed, without suspensive effect, before the Court that issued the general order of execution.

Notice

The order and decree must be served concurrently with the execution or to the attorney for the execution.

Measures to People Immediately Following the Order of Release of the Performance

If Enforcement Office is Denied (552)

Consolidation of Implementation (555)

Order to Seize Property

This benefits the defendant and is applied if there is no agreement between the parties. The order of seizure applies to:

  1. Money or bank accounts of any kind.
  2. Credits and duties on the spot or short term, bonds, securities, or other financial instruments admitted to trading on an official secondary market.
  3. Jewelry, art.
  4. Income in money, regardless of its origin.
  5. Interest income and fruits of all kinds.
  6. Movable or livestock, stocks, bonds, or securities not admitted to official listing and shares.
  7. Real estate.
  8. Salaries, wages, pensions, and income from professional and commercial activities.
  9. Credits, rights, and values achieved in the medium and long term.

Rearrest of companies may also be ordered:

Seizure of property previously seized in a separate process (610):

  1. Seized property or rights may be rearrested, giving the reembargante the right to receive the proceeds from the realization of assets, once the rights of ejecutantes are satisfied.
  2. If, for any reason, the performer of the process in which the first rearrest was made is unable to continue, the performer of the subsequent process may hold the rearrested assets.
  3. The performers of the processes in which the rearrest is ordered may request the court clerk to take measures to ensure this work.

Valuation of Property

If the seized goods are not those to be delivered directly to the performer, nor are they shares or other forms of social participation, they shall be appraised, unless the performer and the executed have agreed on their value before or after the execution. This guarantees the rights of both the performer and the debtor. Three valuation systems are supported:

  • Agreement between the parties.
  • Expert valuation and approval by the judge.

(638-639) Expert Valuation: An expert is appointed, and the parties are notified. The clerk decides on the application and issues the expert opinion upon payment.

Implementation Agreement

The agreement, approved by the clerk by decree, is reached by the parties and stakeholders in an execution procedure to agree on the most effective embodiment of the seized property.

Standing

Any person who proves direct interest in the execution has standing to request this convention, not just the performer or executed.

Form of Adoption of the Convention

The Convention is adopted at a hearing ordered by the SJ, after hearing the ejecutante. The hearing is only held if the SJ finds no reasonable grounds to deny it. Attendees can propose any form of realization of assets subject to execution and may offer to acquire the property for a price higher than expected through judicial auction. They can also propose other ways of fulfilling the performer’s right.

If an agreement is reached between the performer and the executed, the SJ will adopt it by decree and suspend execution against the property. The agreement will also be approved if it includes the suspension of compliance by non-performing subjects and affects the executed.

When the agreement relates to registered goods, the agreement of creditors and third-party holders with registered rights is required for approval.

If no agreement is reached, the hearing may be repeated when circumstances warrant, according to the SJ, for the best performance of the property.

Statement of Opposition to the Provisional Execution

  1. Opposition to the entire execution (528.1) due to violation of any procedural requirement or budget, or because the sentence of condemnation is not cash and it is impossible to temporarily return to the previous situation without damage.
  2. Opposition to specific executive actions (528.3). This is allowed when the executed believes that such actions would cause an irreversible situation or require financial compensation through damages. When making this opposition, the government must indicate alternative enforcement measures and offer security. If no alternative measures or security are provided, the opposition will not be decreed.