NEWSLETTER OCTOBER-NOVEMBER-DECEMBER 2014
LEGAL AND FISCAL UPDATES C/ Generalife nº 9, Aloha Pueblo, Aloha Golf, 29660 Nueva Andalucía, Marbella Tel: +34 952 81 21 00 Fax: 952 81 27 67 web: www.balms.com
WARNING The information included in this publication is purely for informative purposes in relation to certain legal and fiscal matters. It is general information which therefore does not constitute legal advice in any area of the law. Although we always try to ensure that the information included is current and correct, we cannot always guarantee that it will continue to be correct in the future. Therefore if this information is used as reference, it should be previously verified and checked and relevant professional advice should be sought. It is forbidden to copy, reproduce or pass on all or part of this publication, by any means or method, without previous express and written permission from BALMS ABOGADOS ANDALUCIA S.L.P.
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Contents
Another turn of the screw 3 “The Entrepreneurs Act” Civil bonds vs. Criminal bonds, or: Why is Blesa 5 not in prison? The end of “floor clauses”?
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Rebus sic stantibus
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Judgement of eviction for non-payment
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News flash Most retweeted tweets
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News Balms Abogados expands its Procedural department with two new recruits Foro Europa 2001 Awards ceremony
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Another turn of the screw “The Entrepreneurs Act” system but rather unemployment, the question is: Who is really responsible? Is it the workers, or is it managers who blame their workers for the failure of their management to solve the recurring problems posed by the current situation and the many changes forced upon businesses in the past few years?
Law 14/2013, dated 27th September.
people are unfortunately doubting due to the social chaos.
In the current European financial climate, an intense decade of significant changes and the implementation and rapid progress of new technology have caused a huge change in business models. This, combined with many other circumstances, has inevitably resulted in a never-ending financial, economic and social crisis. We are now facing and have to deal with a new and unknown socio-economic scenario. Some countries are managing better than others due to their culture.
As a lawyer, I examine the attitudes of many companies from many different sectors every day; established businesses, enthusiastic entrepreneurs, prudent management and some “kamikazes”. All of them have the same view on the situation: there is reduced turnover, adjusted profit margins, a lack of capital and credit. Add payment delays to all of this and the situation becomes uncontrollable.
There are ongoing debates over the causes of such a deep recession, over the consequences, the possible solutions. Everyone has their own opinion and perspective, but there is nothing new that has not happened before. The key is how to adapt and manage this evolving process, whilst keeping in mind the values and principles which should come above all else and that many
However, the problem that really worries employers is the state of working relations. Some directly attack their workers, arguing that “they don’t understand how difficult this situation is at the moment, or the financial strain. They are only concerned about their own problems…”, and they think that employers “are fighting day in, day out to protect their jobs…”. This is all true, and they are partly right, however considering that the main problem in Spain is not the social
Of course, it is neither one nor the other. We have to accept the situation as it is and assess the position of our businesses in the current social climate. We should consider human capital as the main asset in any business, and similarly we need compromise, adaptability, flexibility, understanding and sacrifice from everyone involved. We need mutual respect, while not forgetting the hierarchy of the business world and the values which should come before the interests of any party. From a legal perspective and considering the modifications to labour law from February 2012, which are insufficient in my opinion, the government passed the Entrepreneur Act 14/2013, dated 27th September. This law undoubtedly stimulates and shakes up the market and introduces social and labour changes which encourage business creation and security. As usual, the law gives us many varied reforms with interesting concerns such as “leadership, initiative, ideas, ability to accept mistakes, intuition, decision making…”, all of which should be appreciated. Of course, the law is
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LATEST NEWS not a cure-all and it lacks many relevant aspects, but all legislation can be improved upon, especially at this time, so we should try and view the positives and improvements that this new law brings about. First of all, the law attempts to improve procedures for setting up companies. It allows limited liability companies to be set up online, significantly simplifying paperwork i.e. (i) the business name can be reserved “online” and the corresponding certificate can be sent within 6 hours; (ii) some similar regulations have been introduced; (iii) an electronic diary for the notary was created, so that it is possible to make an appointment to sign the Articles of Association within 12 hours; (iv) when the company is set up, the notary will obtain the tax code and (v) will send it within 6 hours of its receipt to the Registrar of Companies to be registered. Therefore, it should be possible to set up a company in a period of 24-48 hours.
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Census declaration from the Tax Agency, which has been replaced by the DUE. From a tax perspective, VAT collection on a cash basis has been introduced. This means that businesses and self-employed workers who are under this scheme will not have to pay VAT bills, as long as they have not paid the invoices. Further tax incentives have been introduced, such as the deduction of 20% of the capital invested by individuals in projects run by entrepreneurs or recently created businesses. Corporate tax for companies set up after 1st January 2013 is now fixed at 15% for the first 300,000 Euros and at 20% for anything above that during the first tax period. Notary and registry fees have been significantly reduced, residency visas are granted to foreigners who intend to set up a business in Spain, internationalization of Spanish companies is being financed, and more. There are many proposals which aim to stimulate this
depressive market and society. We should celebrate these initiatives! Clearly the law cannot solve these problems, but the measures help, as does the growth of unemployed people who have used their unemployment benefits to set up businesses during 2013. The improvement of the old macro data and the positive outlook that we must regain in our day to day lives also help; in difficult situations, even the smallest things matter. In short, we have to adapt to changes, to the current situation, to reconsider these lost values such as respect, sacrifice, merit, work and professionalism. This is the only way we can bring about a change in mentality, be able to work and live together and put an end to this identity crisis once and for all.
Jorge Martín Losa Socio Balms Abogados Madrid
Another notable point is the reduction of contribution costs for new self-employed workers and businesses by introducing a flat rate for the first 6 months, which attempts to encourage the setting up of businesses. Equally important is the reduction of the employer’s liability in case of bankruptcy, which prevents hypothetical creditors from seizing their homes, even if this is only applicable to private businesses and not the government, tax office or Social Security. Moreover, the legal formalities in businesses’ day to day workings have been substantially reduced, such as getting rid of the very outdated guestbook for work inspections, and the removal of the
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Civil bonds vs. Criminal bonds, or: Why is Blesa not in prison?
Last week, Judge Fernando Andreu posted a bail of 16 million euros for Miguel Blesa, and another of 3 million euros for Rato. So, why is Blesa not in prison, if he has not paid the requested bond? Because, in this case, the bond posted by the judge is a civil bond, which is a guarantee of his civil responsibility and not a precautionary measure to prevent his imprisonment.
in a trial. In Blesa’s case, as he has not paid the requested sum, the judge will seize enough of his assets to cover the bond, and if there are insufficient assets to cover the bond, he will seize wages to the quantity specified in the law. However, a civil bond does not lead to imprisonment. Criminal Judgement Act Article 597
Criminal Judgement Act If the bond is not paid on the day following the creation of the decree, the assets of the accused will be seized. Sufficient assets will be seized to cover the value fixed for financial liability.
Article 589 When the summary trial results in criminal charges against a person, the Judge will set a bond which acts as a guarantee of financial liability. The same decree will state the amount of assets which can be seized to cover said liability if the bond is not paid. This quantity will be fixed in the same decree and may not be less than a third of the likely sum of the financial liability. A civil bond is used in cases involving criminal charges, and it guarantees the responsibilities that may arise for the victim
On the other hand, a criminal bond is used to reduce the possibility that the accused will escape justice. This bond aims to guarantee (as far as possible) that the accused will be prosecuted. In this case, non-payment of the bond will lead to imprisonment. Application for a civil trial does not necessarily mean a criminal trial will subsequently be requested, nor does it eliminate the possibility. All there is to do is wait and see how the proceedings unfold.
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The end of “floor clauses”? Good news for those who took out a mortgage with a “floor clause” included: on 24th October, the Supreme Court published sentence 464/2014, which invalidated the floor clauses of eight individuals who took out mortgages with Caja Segovia (now Bankia), alleging that the company had not been transparent enough with respect to these clauses with the clients who had signed said mortgages. It seems that the need for transparency is the key to the Supreme Court considering a clause wrongful, even when it has been read by a notary and it is clear from a grammatical point of view, as is the case with these clauses. This is the second time that the Supreme Court has acted against floor clauses so it reinforced the doctrine already put in place by the previous sentence on 9th May 2013 (which was discussed on this blog by our colleague Ernesto de Gregorio in two articles), which invalidated all floor clauses included in mortgages with the companies Cajamar, NCG and BBVA. This almost guarantees that all floor clauses will be eliminated since jurisprudence has been stablished. In Spain, jurisprudence is not considered a source of Law, as according to article 1 of the Civil Code, only “the law, custom and general principles of law are sources of the Spanish legal system”. However, article 1.6 of the Civil Code says that “jurisprudence complements the legal system under the doctrine established by the Supreme Court to interpret and apply the law, custom and general principles of law”. Therefore, although it is not considered a direct source of Law, it is an indirect source and so is relevant and important. Moreover, jurisprudence begins after two or more sentences from the Supreme Court interpret a regulation in the same way. This is the main reason why those who have a mortgage containing a floor clause should remain hopeful for a positive outcome to their lawsuits. In the sentence made on 9th May 2013, the Supreme Court established that floor clauses would have to go through two filters; incorporation (through delivery of the binding offer or of previous contractual information, as appropriate) and transparency. It established that a floor clause is not transparent if:
a) There is insufficient information on a key element of the main object of the contract. b) It is included in conjunction with “roof clauses” and as a consideration of this. c) When the contract was made, there were no examples of various related scenarios with expected behaviour of the type of interest.
Fast and efficient “floor clause” claims. Balms Abogados achieves the annulment and refund of “floor clauses” in record time. The firm has had a significant procedural success in a lawsuit filed against one of the country´s main financial entities. After the defendant company was notified, the bank contacted our lawyers to sign an agreement and immediately annul the floor clause. The bank also agreed to refund the amounts charged to the client, and provide compensation for the work carried out. This case clearly shows that the best option in such claims is to get legal involvement as soon as possible, because the banks tend to avoid lawsuits and come to agreements which are very beneficial to the clients.
For consultations on this matter, contact our lawyer Julia Crespo. Tel: 952 81 21 00 e-mail: jcrespo@balms.com
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d) There is no clear and comprehensible prior information on the comparative cost with other types of loan offered by the company, if there are any, or if there is no warning that they will not be offered to the particular client. e) In the case of the clauses used by BBVA, the clauses were hidden amongst an overwhelming amount of data which distracted the customer.” Therefore, it is not enough that the bank gave a binding offer to the client which contained said floor clause; although said clause, as previously stated, made grammatical sense, it also had to be checked for transparency, a check which none of the studied clauses passed. To summarise and according to the press release from the General Council of the Spanish Judicial Authority: The sentence, which reinforces the previous sentence on floor clauses, establishes the transparency check which is defined in the general regulations. This check involves the necessary fulfillment of special duties when drafting contracts which allows the customer to fully understand the legal and economic consequences of the product or service being offered to them.
LATEST NEWS his transparency check means that clauses must be clear, and not only from a grammatical point of view. In the case examined by the Supreme Court – clauses in loans from Caja Segovia – the floor clause did not pass the transparency check, as it was not part of the preliminary negotiations and agreements which took place, nor did it stand out in the contract or in the previous binding offer as it was included in a much broader and more generic clause on variable interest.. Clearly, although this battle is won, the war continues because the Supreme Court maintains that a floor clause which works on a minimum flat rate is not illegal. In these cases, its illegality is based on its lack of transparency, and this is unlikely to be admitted retroactively (after the signing of the loan agreement) or nonretroactively (after the sentence). In this case, the Supreme Court cannot examine the consequences of the annulment of the floor clause, which means that it cannot decide if the amount paid (including interest) should be returned, because this was rejected in the first decision, and was not appealed. We will just have to wait for the next sentences on the matter…
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Rebus sic stantibus The sentence indicated that there has recently been a progressive shift in the traditional view of said situation. This change means that the highly restrictive or exceptional framework for implementation has to be normalised, with a progressive goal for a technical base for application which is considered “compatible with codified law”. This means taking into account public economic policy, the rule of “the commutative nature of the legal trade as an expression of a basic balance between exchangeable assets and services”, and also the principle of good faith. Unlike the previous case law doctrine, this new one states as that the current economic crisis “can clearly be considered as an economic phenomenon capable of seriously disrupting or distorting the circumstances and therefore altering the basis on which contractual relationships were founded and developed”. It could be very important given that it applies to all currently effective bilateral contracts entered into before this economic crisis.
Without carrying out an in depth analysis of the sentence given by the Supreme Court on 30th June 2014 by Francisco Javier Orduña Moreno, it should be noted lawyers should not overlook the sentence because it sets out in detail a new doctrine on the rebus sic stantibus clause. Until this new sentence, the application of this case law doctrine was very restrictive. This means that for it to be applied, the change in economic conditions would have to be significant and unexpected and the difference between services and payment for services brought about by such a change would have to be extreme, to the point that the contract would collapse. The new sentence means that the rebus sic stantibus clause may now be applied in less extreme circumstances.
The economic crisis itself cannot be the sole basis for application of the rebus sic stantibus clause and until now, its possible application was vetoed for almost all contracts which have immediate effect, such as buying and selling, and as a general rule its application was rejected for cases of financial difficulties of those with payment debts. Therefore, if the contract was entered into before the crisis, it is unclear to what point an economic recession with significant and lasting effects, like this, can qualify as an extraordinary change of circumstances which may cause a significant disparity between the respective payments of the parties, and therefore meriting the application of the clause. Juan Carlos López-Morago Balms Abogados Madrid
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Judgement of eviction for non-payment On the 11th October 2011, Law 37/2011 was published in the BOE (the Official State Bulletin), which is the law on Procedural Improvement Measures. It presents procedural reforms to introduce “improvements which speed up various proceedings, without decreasing guarantees for those awaiting trial”, as stated in the Explanatory Memorandum in the Preface.
The goal of this analysis is to explain the basic workings of these judicial proceedings (after the last reform, it is also possible to request eviction from leases registered in the Property Register by going through a notary). The goal is also therefore to try to clarify the main queries that both owners and tenants have about knowing what to expect when they begin or are involved in proceedings for an eviction for
Such improvements were seen in a noted change in the summary proceedings of the Eviction for Non-payment, which was “reconstructed” in a similar extension of the monetary procedure. Since then, the general outline of the proceedings has become the following: initial request, period for the defendant to pay or oppose, conducting a hearing in the case of the latter and, in the absence of either of these actions, it would proceed directly to eviction.
non-payment. This is of great interest under the existing regulatory and economic framework, and is encouraging rentals of many empty urban properties (both residential and commercial) which are privately owned due to the economic crisis. It also helps property owners (whether they are real or legal persons, Spanish or foreign), as knowledge of these processes can be useful when putting their property on the rental market.
Clearly, like all urgent reforms or like all fast decisions, the new proceedings established by this reform have some omissions which have caused problems in many new Eviction for Non-Payment trials which began after its entry into force. This is why the most recent law, 4/2013, dated 4th June, Measures for Adaptation and Development of the Housing Rental Market, within its main goal of improving and invigorating the rental market, introduced slight modifications to the proceedings to solve these problems. In the opinion of the undersigned these measures are insufficient, so in daily procedural practice there is no unanimity in procedures between the different judicial bodies on the guidelines for eviction, grounds for
1. Reasons for initiating proceedings for an eviction for non-payment.
opposition, the obligation to request the eviction previously or not, and many other reasons we will not go into in this article, for lack of space and so as not to confuse the reader.
is a legal reason for the resolution of the rental contract and a sufficient reason to initiate proceedings for eviction, even if the tenant has only defaulted on one month´s payment. It
In general, the main responsibility of the renting party in rental contracts is to pay the agreed rent, as well as other quantities they are required to pay by the signed rental contract, in accordance with article 1555 of the Civil Code. In compliance with this, article 27.2.a of the current Urban Rental Law authorizes the renting owner to demand the payment of owed amounts in the case of non-payment by the tenant and to end the rental contract, so regaining possession of the rented property. Therefore, any instance of non-payment
is consolidated case law doctrine that it is possible to terminate a tenancy, even “though the demand is based on the non-payment of a single month´s rent” (Supreme Court Sentence 24th July 2008). There was also discussion about whether this ability to terminate tenancies extends to the non-payment of amounts related to services and supplies for the property, including the I.B.I. In the case of the latter, as well as other non-specified charges, it should be pointed out that for the tenant to be obligated to pay the rent, this legally must be agreed expressly and in writing. Jurisprudence is also unanimous on this point: non-payment of the I.B.I. and other costs for services and supplies is a valid enough reason to terminate the contract, even if the tenant is up to date with payment of rent (Supreme Court Sentence 12th January 2007 and 20th July 2011). However, in the case of the I.B.I. it is necessary, sine qua non, that the tenant is given prior notice of at least the amount and the payment of said tax. If not, and if the landlord takes the claim directly to court without this prior notice, the tenant would be without proper legal defense. Therefore, there is no doubt that the non-payment of these charges also allows the owner to proceed to a trial for eviction due to non-payment. However, this type of owed costs must be broken down and defined in the request made and accompanying all supporting documents thereof. Finally, and most importantly, the continued delay in payment of rent, even if it does not create debt or any instance of non-payment, also acts as support
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initiating adjudicative actions. As established by the Supreme Court, the landlord “is not required to accept the tenant´s late payment of periodic payments”. 2. Initiating proceedings against the individuals involved The proceedings for eviction due to non-payment are begun upon request. Under these proceedings, the eviction action may be carried out together with the reclaiming of rent and other owed amounts, which the lawyer here undersigned strongly recommends. We should not forget that these proceedings are special and summary, so it would be unreasonable to expect the evacuation of the property to reclaim the owed amounts in a later and longer declaratory procedure than that explained in this article. Prior to this request, the tenant can be asked by certified fax to speed up the payment of the debt, under penalty of beginning the process for their eviction. This is not required or obligatory although it is advisable, not only because it is always preferable to resolve all disputes out of court but also because if 30 days after receiving said fax the tenant has not paid the total amount owed, the tenant has no right to be angry when the lawsuit is filed and the proceedings are started. In other words, the tenant can no longer stay on the premises or property and must pay all that they owe and are legally required to pay. The lawsuit may be filed against the tenant´s guarantor as well as against the tenant (if the debts are requested together with the eviction action). In this case, however, as required by article 483.3.3 of the Civil Procedural Law, the guarantor must have been asked to pay the debts prior to the submission of the request. As for the requirements and how to file
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the lawsuit, we highlight these three distinguishing aspects of these types of lawsuit: • The lawsuit must show if the defendant has the option or not to stop the action, as well as the reasons for the existence or not of said possibility. • The requesting owner may express their willingness to cancel all of the tenant´s debt if they leave the premises within 15 days of the legal request. • Similarly, if the sum owed is reclaimed at the same time, we recommend requesting in the lawsuit that the defendant must pay, all costs incurred during the proceedings as well as the rent and all other amounts owed before the start of the proceedings. Finally, we should note that to begin this type of proceeding, the corresponding Court Fees must be paid. 3. Development of the proceedings: requirements and possibilities of the defendant tenant As stated in the introduction of this article, the proceeding for eviction due to non-payment will begin, through a legal request to the debtor, although in this case the deadline will be within 10 working days, not 20 as in the payment order. The tenant is given this deadline to carry out one of the following actions: 1. Leave the property. 2. Alternatively or at the same time, pay the total owed to the landlord (including new amounts accrued if they were specifically requested in the lawsuit, and this request is applicable to the guarantor). In this case the tenant should indicate if they hope to stop the action or not, which is not possible if the eviction had previously been stopped or, as indicated in the previous point, when the debts had been officially requested from the tenant thirty days prior to the filing of the lawsuit. 3. Draw up a concise opposition to the lawsuit. Although the procedural law does not specify what motives may
be put forward, the reasons for the opposition must at least be expressed. The most common reasons are the payment of the debt, the landlord refusing to accept the payments (mora accipiendi), compensation, cancellation of the action, substitution of the contract, and various procedural exceptions. However, we must remember that this is a summary proceeding which does not have the effect of res judicata, therefore other reasons for opposition or those not connected with those stated will not be possible because they should be clarified in the relevant declaratory trial. The request will indicate the date when the possible trial will be held, which will only take place if the tenant opposes the landlord´s action, or if the landlord opposes the tenant´s request that the eviction is stopped. The request will also state the date that the tenant must vacate the premises assuming that said tenant does not carry out any of the above actions. Usually, to speed up proceedings, which is commendable, some judges also indicate two start dates: the required one in case of the defendant not appearing in court, and another later one for when the hearing will presumably take place. The defendant will have a deadline of three days to request legal aid, at the same time as the main period. They will also have another simultaneous period of five days to accept a cancellation agreement from the landlord, if applicable, and in this case will have 15 days to vacate the property from the date of the request. 4. End of the proceedings: Implementation, Appeal and Costs The proceedings for eviction due to nonpayment may end in two ways: through a Decree from a Court Clerk, or a judgement passed by the Magistrate Judge, which as previously stated will not have res judicata effects.
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The proceedings will end through a decree when the tenant takes no action before the deadline and once the landlord is notified of this they must ask for the eviction to be carried out, so that it happens on the date indicated by the Judge. This is done via a simple written request, although some lawyers prefer a petition for a court order. The decree also ends the proceedings under the assumption that the tenant will voluntarily vacate the property, therefore this resolution acts as an enforcement order to begin the relevant process to collect rent and other owed amounts. Of course this is only if the debts are collected together with the eviction, and the action of reclaiming these debts was not cancelled. The proceedings will end through a judgement as long as the hearing has been held. If the hearing results in eviction, it will take place on the date indicated in said judgement, or on the date that
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the Judge already indicated in the request, if applicable. The hearing will of course be a sufficient enforcement order to begin the corresponding collection proceedings for the rent and other debts. This judgement may be appealed even if it results in a conviction. The tenant who wishes to appeal should have written proof that they have paid all of their rent and other debts at the time of submitting the appeal (as well as having paid the very high court fees, but that is another story). Finally, it is important to note that following the last reform, the tenant will always and under all circumstances have to pay the costs incurred, regardless of how the proceedings end, as long as the result was not acquittal and in all possible conclusions to the process explained here, as well as if the action is stopped.
5. Conclusion. This is a simplified summary of these types of proceedings, even though circumstances mean that proceedings and solutions vary from case to case. However, the intention was to give property owners and tenants an overview of what to expect, and more or less what the deadlines would be in case of non-payment and what the legal solution would be. What can be taken from this article is that these new proceedings, although they have some failings and omissions which could be reduced through everyday legal practice, they and the significant legal reforms carried out to this effect should facilitate the movement of the rental market by above all helping property owners to sell their empty properties as quickly and profitably as possible. This helps to reduce the risk of properties being occupied by non-paying tenants. Fernando Camba Balms Abogados Galicia
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We’re
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with 3000 followers on Twitter. Thank you to everyone! We hope we don’t disappoint...
Qualities of a good junior lawyer. To guarantee its continuation, its adaptation to its environment, a healthy rotation, and generational change by letting new professionals access partner positions and gradually replace more senior workers, a firm should have employees of all ages. To achieve this, firms should recruit regularly and keep good young lawyers who will integrate into all areas of the firm. These young lawyers will develop their personality and life experience at the same time as progressing in their professional career within the firm, allowing for greater development of the firm and fulfilling the plan for succession and continuity. Full article available at Economist & Jurist http://bit.ly/1rbyalj
NEWS FLASH...
Pontevedra High Court exempts an appellant from paying court fees, considering them too high. Section 1a of the Pontevedra Provincial High Court, which specialises in commercial matters, passed two decisions which support a complaint filed by the administrator of a limited liability company. The sentence meant that the administrator lost certain rights and had to pay substantial penalties and a significant prior payment was requested to appeal it, according to information on the General Council of the Judiciary website. Full article available in Legal Today http://bit.ly/1Fok1Ci
Happy 50th Birthday, Mafalda!
The Cantabria “Preferred Shares” Court supports victims in 99% of cases The Cantabria “Preferred Shares” Court (Court 7-Bis) has supported the plaintiff in 98.73% of cases, as highlighted by the Committee for Victims of Preferred Shares Fraud in Cantabria, which is reflected in the information provided by the court itself on the first anniversary of its establishment. The “Preferred Shares” Court was at first created for 400 cases, which was later increased to 600 and finally 700. Of these 700 lawsuits, almost all of which were against Liberbank-Caja Cantabria, 500 have been resolved, either by sentence, agreement or withdrawal. Full article available in El Boletín: http://bit.ly/1rozY56
So we have to respect these rights? Not going to happen, like with the Ten Commandments!
The European Court confirms that charging for checking in baggage is legal The Court of Justice of the European Union has declared that the Spanish law which prevents airline companies from charging to carry checked in baggage is contrary to Union law. Full article available at Diario Jurídico. http://bit.ly/1tWF7VV
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NEWS FLASH...
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Transfer of the Civil Registry to company registrars and the “free rider” problem
The new lawyer: digital, competitive, global and with marketing knowledge
Changes are being proposed to the current Spanish registry system to make a national registry agency, more like the British system. This causes problems for the registries, especially in terms of financing. There are four options for financing the transfer: charging for registry entries, state financing, users of the Commercial Registry paying for Civil Registry services, or a new cost for legal professionals to consult registry information. This transfer also causes a problem with “free riders”, meaning that some people will not pay for the services but will still receive the benefits.
The president of the General Council of Spanish Lawyers, Carlos Carnicer, led the opening of the Digital Year of ENATIC (The National Association of Lawyers ICT sector) today, and said that the legal profession cannot continue to be left behind in the current technological revolution. “We have to keep up to date with the latest research and scientists to be able to solve conflicts that arise”, he stated, and encouraged lawyers to get on board with new technologies and the new business opportunities that they bring.
Full article available in ¿Hay Derecho? http://bit.ly/1tgLTT1
Using a driving license as a certified document to prevent money laundering There is some confusion about using a driving license as a formal form of identification because it is a subject that has been continually questioned. In the legal context of preventing money laundering, there were liable parties who did not know whether or not accepting a driving license when formally identifying certain natural persons was in line with the regulations for preventing money laundering or if it would incur a serious administrative penalty. Full article available in Diario Jurídico http://bit.ly/1rLv5q4
I tweet, you tweet, the Real Academia Española tweets... The twenty third edition of the Dictionary of the Spanish Language (DRAE) will appear in book shops this Thursday, in both Spain and Spanish speaking countries. Its publication comes at the same time as the celebrations for the third centenary of the Real Academia Española (RAE), the Royal Spanish Academy).
Full article in Diario Jurídico http://bit.ly/1uflkkF
Joint custody as the general rule
Relatives until death do us part
The Supreme Court claims that joint custody encourages the integration of the child with both parents. It ensures equal time spent with each parent, avoids a sense of loss, the capability of the parents is not questioned and it encourages cooperation between the parents for the benefit of their child. The Supreme Court adds that this model ensures the child’s proper development and emotional stability. It is also beneficial because it is not a dramatic change from the living arrangements before the parents’ separation, in that it grants parental rights and responsibilities, as well as allowing them to participate in their children’s development and growth on equal terms, which is undoubtedly beneficial for the children.
Relation by marriage ends with the dissolution of a marriage, therefore you cannot be included in group III (Second and third degree collateral relatives, ancestors and descendents by marriage) for the purposes of Inheritance Tax when the tax is accrued for the previous death of a spouse. Full article in Legal Today: http://bit.ly/11sVpel
“A lawyer is a humanist; therefore writings about history or literature are still about the law” Rafael Altamira y Crevea.
Full article in Legal Today: http://bit.ly/1xSjV5y News published on our website (www.balms.com) on our blog (www.balms.com/blog) and most retweeted tweets
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NEWSLETTER OCTOBER-NOVEMBER-DECEMBER
NEWS
Balms Abogados expands its Procedural department with two new recruits Julia Crespo Biehler Julia worked as a practising lawyer from 2003 to 2006 with experience in private law, specifically in civil and commercial matters. In 2006 she began studying for the entry examinations for the Judicial and Fiscal Careers while expanding her legal understanding, and she passed the exam in 2013. From 2010 to 2014 she acted as substitute judge in Málaga province, working in civil, criminal and juvenile law, and specifically in the judicial districts of Fuengirola, Torrox, Málaga, VélezMálaga and Torremolinos. In 2014 she returned to work as a practising lawyer, with experience in both public and private sectors. She specialises in criminal, civil, family and procedural law and she is continuing with her training to expand her expertise. Julia speaks English fluently, having spent a year studying in Tampa, Florida, USA.
Rosalía García Hernández Rosalía has worked as a practising lawyer since 2008 with experience in administrative law and urban planning, giving legal advice to various sectors and public authorities on administration law matters, and legally defending them in administrative and judicial review procedures. After completing her legal studies, she decided to extend her training with an Executive Master´s Degree in Business Law and a specialization course for Official Receivers, amongst other courses. Rosalía studies various English courses at the University of Murcia, and she is preparing for her Certificate in Advanced English. She speaks English fluently, as well as Valencian and French.
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NEWS
NEWSLETTER OCTOBER-NOVEMBER-DECEMBER
Foro Europa 2001 Awards ceremony The Foro Europa was founded by José Luis Salaverría on October 8th 1996 with the goal of creating meetings for European exchanges and expansion. On Thursday 19th September, a dinner was held at the Westin Palace Hotel in Madrid for the Foro Europa 2001 award ceremony. Mr. Juan Luís Balmaseda de Ahumada y Díez was awarded the gold medal for his work as a business development lawyer in Europe. The gold medal was awarded to him by the President of the Foro Europa, Mr. José Luis Salaverría.
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