In this brief overview, regarding the webinar “Arbitration and housing”, which shall be held during the VI Law Congress in Barcelona from 4th until 7th October 2021, we raise the question as to whether arbitration is an appropriate channel for resolving disputes concerning conflicts on urban rentals (housing, offices, business premises, garages, etc.).
We must remember that the Spanish legal system establishes arbitration as an alternative mechanism to ordinary jurisdiction for the resolution of conflicts, in which, unlike conciliation or mediation, the decision of the arbitrator (the “arbitral award”) has a binding effect for the parties and constitutes an enforceable resolution.
Article 47 of the Spanish Constitution (SC) entrusts public powers with the promotion of the necessary conditions in order to facilitate citizens with access to a dignified and suitable dwelling.
Based upon said mandate, in 2008 the Autonomous Region of Madrid created the “Arbitral Council for Rentals”, a technical and advisory professional body attached to the Local Housing and Administrative Department. The scope of application covers both rental agreements originating from public programmes, as well as private contracts in which a clause of submission to the arbitration system articulated by this body has been included.
Likewise, the Arbitration Council has entered into collaboration agreements with different arbitration institutions, which include the arbitrators who settle rental conflicts submitted to the Arbitration Council; as well as protocols of collaboration with various law firms to promote arbitration with the Arbitration Council among their clients. The fees of the arbitrators are set by the Council, and furthermore the public fee of Euro 60, plus VAT is payable, with the objective of partly covering the cost of the activity of the Council in the arbitration proceedings.
In fact, the need to use alternative means for conflict resolution in rental arrangements has become patently clear in the past year and a half of the pandemic, not just because of the congestion of the courts, but also due to their flexibility in combining electronic means with proceedings in attendance.
Without doubt, the implementation of a similar arbitration system by other Autonomous Regions would offer agility and would accelerate the resolution of rental conflicts, likewise, it would facilitate the decongestion of the courts and boost the rental market, which would have a knock on effect in the justice system and the economy.
Carla Villavicencio
Vilá Abogados
For more information, please contact:
1st October 2021
