Organic Law 1/2025: the new requirement for out-of-court dispute resolution before going to court

Organic Law 1/2025: the new requirement for out-of-court dispute resolution before going to court

The Spanish judicial system has been showing signs of overcrowding for years. Low-complexity disputes, unnecessary procedures, and the abusive use of the judicial system have created a situation in which resolution times are prolonged, affecting not only citizens but also the effectiveness of the rule of law. In this context, the recently approved Organic Law 1/2025 introduces a paradigm shift: the obligation to attempt an out-of-court resolution of disputes before resorting to the courts.

Key issues of the new legal obligation

Organic Law 1/2025 reforms, among other regulations, the Civil Procedure Law and the Law on Contentious-Administrative Jurisdiction to introduce a new procedural requirement: proof that an out-of-court settlement of the dispute has been attempted before filing a lawsuit in certain matters.

This new approach is not entirely new to the Spanish legal system. There are already regulated out-of-court settlement instruments, such as mediation, arbitration, and conciliation, available to citizens and businesses.

However, the main novelty lies in their mandatory nature prior to judicial proceedings, at least in certain areas and with clearly defined exceptions.

According to the legal text, this attempt at an out-of-court settlement may consist of:

• Mediation procedure is formalized according to Law 5/2012, on mediation in civil and commercial matters.
• A direct negotiation between the parties with documentary evidence.
• Conciliation in court or through enabled public platforms.
• The submission of a prior claim to administrative bodies, when required by sector regulations.

The plaintiff must prove that he or she has followed one of these channels when filing the claim, providing the corresponding minutes, documentation proving the attempt, or the express rejection of the other party.

Mandatory requirement prior to judicial proceedings

The new requirement will not apply generally to all legal proceedings. The Organic Law itself establishes a gradual, subject-specific approach, with special attention to civil and commercial litigation, and in some cases also to administrative litigation.

Among the assumptions included in this first phase we find:

• Monetary claims of less than 15,000 euros.
• Conflicts arising from contractual relationships between companies and consumers.
• Litigation between owners in neighborhood communities.
• Certain claims against the Public Administration, especially in matters such as consumer affairs, housing or the environment.

Exceptions to this obligation are also provided. An attempt at out-of-court settlement will not be necessary when:

• There is an urgent situation, or a precautionary measure is requested.
• The conflict arises from an employment relationship already subject to specific conciliation procedures.
• There are reasonable indications that the other party acted in bad faith, or the prior attempt could aggravate the conflict.
• These are monitoring processes, in which the debtor party can already resolve extrajudicially upon receiving the request.

The goal, according to the legislator, is to promote a culture of dialogue and responsibility between the parties, encouraging conflict resolution through more agile and less costly means.

What practical implications does this have for businesses and citizens?

The implementation of this mandatory requirement will represent a significant change in the way legal conflicts are handled, both by citizens and legal professionals.

First, companies must adapt their internal protocols, especially in legal and customer service departments, to provide rapid, amicable resolution mechanisms and properly record attempts at dialogue. Offering an online complaint form won’t be enough: a process of exchange, proposal, or rejection must be documented, with clear dates and content.

On the citizen side, it will be important to have clear and accessible information about the available extrajudicial avenues. Mediation, for example, remains largely unknown to many people, despite its advantages: lower cost, speed, confidentiality, and a greater likelihood of preserving the relationship between the parties.

Furthermore, the reform could have a positive impact on the public perception of justice. If unnecessary litigation is reduced, public resources could be focused on those conflicts that truly require judicial intervention, shortening the timescale and improving the quality of resolutions.

However, the success of this reform will depend on several key factors:

1. Actual availability of accessible, impartial, and effective extrajudicial mechanisms. It’s not enough to impose the obligation if there are no structures to make it possible, especially in rural areas or those with less institutional coverage.
2. Adequate training for legal practitioners (lawyers, attorneys, judges, etc.) to correctly apply the requirement and avoid abuse or arbitrary interpretations.
3. Proportionate judicial oversight, which does not turn this preliminary step into another formalistic barrier, but rather into a real opportunity to avoid litigation.
4. Citizen awareness and cultural change. Not all disputes should be resolved in court. This is the underlying message the law seeks to promote.

Organic Law 1/2025 represents a decisive commitment to a more sustainable, less congested justice model focused on fundamental problem-solving. By establishing out-of-court settlement as a mandatory prior step, Spain is aligning itself with European trends that prioritize dialogue over litigation.

It remains to be seen how its practical implementation will play out, especially in the early years. Like any structural reform, it will require adjustments, training, and, above all, the will of all parties to make it work.

The key question is not only whether the workload on the courts will be reduced, but also whether citizens and businesses will feel they have real, effective, and fair mechanisms to resolve their disputes without necessarily having to go through a court.