Spanish Legal Update Nº 34

    View Authors December 2014

    This is the December edition of "Spanish Legal Update" publication, produced by the International Dispute Resolution team of Squire Patton Boggs, which contains some recent Judgments given in the field of Spanish Commercial Law.

    This issue contains the following articles:

    Court Ruling on Abusive Contract Terms and Conditions

    A recent judgment rendered by a Court in Barcelona has correctly determined the scope of the claim on abusive contract terms included in a contractual clause.

    Application of Rebus Sic Stantibus as a Result of the Financial Crisis

    On June 30th, 2014, The Spanish High Court rendered its third Judgment in a year applying the clause rebus sic stantibus as a result of the financial crisis in Spain.

    The New Legal Reform on Bankruptcy Proceedings Weakens the Position of the Privileged Creditors

    The new legal reform on bankruptcy proceedings sets up formulas for evaluation of the guarantees of the privileged creditors in order to adjust them to the actual value of credit guaranteed by them. This will consequently implies a limitation to these types of creditors to stay free from the application of insolvency agreements with regards to the part of their credits that exceed such value, since they will be ordinarily qualified as non-guarantee credits.

    The Effects of Termination of a Payment in Kind Within Insolvency Proceedings

    Within the scope of a case of termination of payment in kind of a debt included in bankruptcy proceedings, the Supreme Court considers that once the agreement is terminated, the credit shall be considered included within the bankruptcy proceedings and not as credit against the estate.

    Upholding the Right to Honour When Registering a Debt

    The Supreme Court stated that an entity responsible for the debtors register and the applicant for the inclusion of an individual in such register had incurred in an illegitimate interference of the right to the honour of the individual, by including and maintaining such individual in the register with a fact or data that should have been appropriate and relevant, and ordered them to compensate the individual with €5,000 in consideration of moral damages.