Business Mediation: Resolve Disputes Without Going to Court

Business mediation in Spain became mandatory as a prior step to civil and commercial litigation under Organic Law 1/2025, which entered into force on 3 April 2025. This law requires parties to attempt an Adequate Dispute Resolution Mechanism (MASC — Mecanismo Adecuado de Solución de Controversias) before filing a claim, and courts now reject proceedings that do not include proof of this prior attempt. Mediation itself is governed by Law 5/2012 on Civil and Commercial Mediation, which transposed EU Directive 2008/52/EC and establishes that mediation agreements signed before an accredited mediator can be elevated to enforceable instruments.

Our team combines expertise in commercial law, dispute resolution, and facilitation to run mediation processes that resolve conflicts in weeks — and produce agreements that hold.

Why Organic Law 1/2025 Closed the Courthouse Door Without a MASC Attempt

Since 3 April 2025, no company can file a civil or commercial claim in Spain without first demonstrating that it has attempted to resolve the dispute through a MASC — a Medios Adecuados de Solucion de Controversias, or appropriate dispute resolution mechanism. Organic Law 1/2025 made this a formal admissibility condition: courts reject claims that do not include the MASC attempt certificate at the moment of filing.

The practical impact is immediate. A company that receives a formal demand letter or decides to pursue a claim against a supplier, distributor, or business partner must activate the MASC process before presenting the claim to the court. Without that step, the court returns the filing unprocessed. Many companies discovered this change after their lawyers had already drafted the claim and the prescription period was running.

Mediation vs Litigation: Cost, Timeline, and the Commercial Relationship

Business mediation resolves disputes in weeks, not years. A civil or commercial first-instance court proceeding in Spain takes between two and five years depending on the court and the complexity of the matter. Structured mediation with experienced professionals resolves the same dispute in four to twelve weeks. The cost saving is equally significant: combined mediation fees for both parties are typically lower than one party’s lawyers and court representatives for a single judicial instance.

The most relevant advantage for businesses is often not economic or temporal — it is the preservation of the commercial relationship. In litigation, parties adopt adversarial positions that irreparably damage any possibility of future collaboration. In mediation, the process is designed for parties to reach an agreement that addresses their real interests, not just their legal positions. The supplier who is today’s defendant may be next year’s strategic partner.

When mediation is not possible or the counterparty refuses to participate, our litigation and arbitration team takes over with the full documented record and strategy already defined. The coordination between the mediation team and the litigation team is a distinctive advantage of working with BMC across both stages.

The MASC Certificate: What Courts Actually Require

The MASC attempt certificate must accompany the claim at the moment of filing. It must be issued by the accredited mediator or mediation institution and include: identification of the parties, nature of the dispute, dates of communications and sessions, and outcome of the process (agreement reached or failed attempt). A certificate issued by a non-accredited mediator or with insufficient content may be rejected by the court.

We issue MASC certificates that comply with all formal requirements of Organic Law 1/2025 and the criteria being applied by civil and commercial courts in the main Spanish jurisdictions. The certificate includes all documentation needed for the party’s lawyer to incorporate it directly into the statement of claim without risk of inadmissibility.

International Disputes and Cross-Border Mediation

Disputes involving counterparties from other EU Member States or third countries have their own mediation framework. We handle international mediations under ICC Rules and WIPO procedures for intellectual property conflicts. International mediation agreements are enforceable across the EU and in countries party to the Singapore Convention on Mediation — making a well-drafted international mediation agreement enforceable in more jurisdictions than many arbitral awards.

For companies operating across multiple European jurisdictions, international mediation can be more cost-effective than ICC arbitration for disputes below EUR 5 million. We advise on forum selection and coordinate with local counsel when the dispute involves foreign law. Where disputes arise from M&A transactions or joint ventures, we coordinate the mediation with our corporate advisory team to ensure that any settlement integrates correctly with the underlying transaction documentation.