Impact of Organic Law 1/2025 on Air Passenger Claims

As of April 3, 2025, the new Organic Law 1/2025 is in effect, aiming to make justice in Spain faster and more efficient. Among its main changes, it requires that in most civil cases, such as claims for cancelled or delayed flights, an amicable solution be sought through mediation or conciliation before going to trial.

On January 2, Organic Law 1/2025 on measures to improve the efficiency of the Public Justice Service was approved. It will come into force on Thursday, April 3, 2025. This law introduces reforms aimed at modernizing and optimizing the Spanish judicial system, with a particular focus on expediting civil proceedings, including air passenger claims for cancellations, flight delays, denied boarding, and overbooking, as regulated under Regulation (EC) Nº 261/2004 of the European Parliament and of the Council of 11 February 2004, establishing common rules on compensation and assistance to air passengers in the event of denied boarding and of cancellation or long delay of flights, and repealing Regulation (EEC) Nº 295/91 (hereinafter, "Regulation (EC) Nº 261/2004").

One of the most impactful innovations is the introduction of prior negotiation as a mandatory precondition for most civil proceedings. This measure promotes the use of alternative dispute resolution methods (hereinafter, “ADR”), such as conciliation, mediation, and collaborative law. The Law also introduces new figures such as private conciliation, binding offers, and independent expert opinions, broadening the options for reaching an out-of-court resolution.

In addition, the concept of abuse of the public justice service is introduced, penalizing the unjustified refusal to participate in ADR processes when mandatory. In practice, this means that the claimant must prove—together with the statement of claim—that prior negotiations with the airline were attempted using one of these mechanisms, as a necessary step before the case can be admitted. Failure to comply with this requirement will allow airlines to challenge claims that lack prior attempts at resolution, which will help reduce unnecessary litigation and curb the abusive use of the court system.

To this end, along with regulating the mandatory attempt at prior conciliation, the legislation updates the system of cost assessment, eliminating cost awards in certain incidents except in cases of procedural abuse, to prevent unnecessary litigation over professional fees and it also establishes maximum deadlines for certain stages of the proceedings.

One of the most notable new features is that in oral proceedings, judges may adopt measures aimed at a faster resolution. For instance, it will be possible to rule without holding a hearing if the judge considers the documentary evidence sufficient, even if requested by the parties. Previously, a hearing was required whenever one party requested it. This measure aims to avoid unnecessary delays in handling straightforward or standardized cases, such as air passenger claims. Furthermore, in hearings that do take place, judges in summary proceedings may now deliver oral judgments during the hearing, which will be properly recorded and documented.

Another fundamental pillar of the Law is the creation of Courts of Instance, which will gradually replace single-judge courts, currently responsible for handling these types of proceedings. These new courts will be organized into specialized sections (family, commercial, criminal, labor, among others) and will be supported by a common Judicial Office, allowing for better workload distribution, enhanced specialization, and harmonization of organizational criteria. The creation of a Central Court of Instance as a national reference body is also established. This organizational redesign could positively impact the handling of passenger claims by strengthening efficiency and consistency in the resolution of proceedings governed by Regulation (EC) Nº 261/2004.

At the local level, the replacement of traditional Justice of the Peace Courts by Municipal Justice Offices significantly expands their functions, including collaboration with the Civil Registry, the performance of procedural communications, and the handling of administrative tasks related to the Justice Administration, bringing judicial services closer to all regions.

The law also supports the digitalization of judicial proceedings, with the implementation of the electronic judicial file, computerized procedural management, and the redefinition of the Judicial Office. These measures aim to facilitate electronic filing of claims and case processing, as well as improve communication between parties—particularly relevant in the context of passenger claims.