Regardless of the fact that the United Kingdom left the European Union in 2020 trade between the UK and Spain is still substantial. The Office of National Statistics (ONS) https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1185828/spain-trade-and-investment-factsheet-2023-09-21.pdf
latest report states that Spain is the UK’s eighth largest trading partner accounting for 3.4% of its total trade, amounting to £59.1 billion in the previous four quarters to the end of 2023
Inevitably British businesses will experience unpaid outstanding invoices within that level of trade. The current economic crisis currently being experience in the UK has put considerable pressure on all companies and recovering any outstanding debts accrued is always an unwelcome challenge, recovering overseas debt is doubly unwelcome.
Giambrone & Partners’ highly experienced dispute resolution and litigation lawyers point out that cross-border debt collection between the United Kingdom (UK) and Spain can involve complex legal issues, in the post-Brexit period. The importance of instructing a law firm with multi-jurisdictional capacity is vital. Giambrone & Partners has offices throughout Spain with English speaking multi-jurisdictional lawyers.
Gonzalo Butori, a partner, commented “a key factor is which jurisdiction in the original contract between the parties was chosen in the event of a dispute. England and Wales is a very popular jurisdiction due to the fact it is perceived as being unbiased.” Gonzalo further pointed out “Cross-border trade should always be supported with carefully drafted robust contracts including clauses aimed at protecting the business should a contentious issue arise. Clauses stating that a form of alternative dispute resolution (ADR) must be followed initially as well as a jurisdiction clause enabling you to pre-select the jurisdiction provides some degree of control over a dispute and the way it is to be managed.”
If the inclusion of such clauses has been overlooked it may be possible to instruct a cross-border litigation lawyer to approach your debtor in an attempt to negotiate a solution through ADR. This is in the best interests of all parties and will show that you are making all reasonable efforts to attempt to achieve resolution without recourse to the courts. If a negotiated resolution can be achieved there is a greater chance of preserving the business relationship.
If all steps to resolve the dispute by a negotiated settlement fail, then there the only course of action that remains is to have the matter dealt with through the courts once the applicable law and jurisdiction has been established. A letter before action should be issued providing one last opportunity for the debtor to pay the outstanding invoice before court action.
Once a successful court decision has been achieved you are then faced with enforcement of the judgment. Britain’s exit from the European Union has made this process significantly more complex and time consuming and must be managed by experienced expert cross-border lawyers. There is more than one approach and the advice and guidance of an international litigation lawyer cannot be overstated. Unless the correct procedure is followed meticulously any breaches can result in the judgment being unenforceable and the creditor can be faced with legal costs and no satisfactory conclusion.