Case Reference: #2024-ES-0087
Client profile: UK-based building materials supplier specialising in high-specification cladding systems. Annual revenue £45 million. European customer base across 12 countries.
Claim: €195,000. Three invoices for cladding materials delivered to a Madrid-based construction contractor for a commercial development project in the Salamanca district.
The situation
The Madrid contractor had a solid reputation — €28 million annual revenue, 85 employees, and a portfolio of commercial construction projects across central Madrid. The contractor had ordered specialised cladding systems for a high-profile office development, received delivery confirmation signed by the site manager, and then gone silent.
The UK supplier's credit manager had followed up for five months. The responses followed the Spanish commercial payment pattern: initial enthusiasm ("we'll process this immediately"), followed by administrative delay ("the invoice is with our accounts department"), followed by the classic Spanish business manoeuvre — blaming the end client ("we're waiting for payment from the developer"). The supplier was patient. The debtor was counting on exactly that.
What we deployed
The procedimiento monitorio. Spain's payment order procedure (Articles 812-818 of the Ley de Enjuiciamiento Civil) is one of Europe's most creditor-friendly instruments for claims up to €250,000. The procedure requires no lawyer (abogado) or court representative (procurador) for claims up to this threshold. The creditor files the application at the Juzgado de Primera Instancia (Court of First Instance) in the debtor's judicial district.
We filed at the Juzgados de Plaza de Castilla in Madrid, presenting the signed delivery notes, the purchase orders, and the three invoices. The court issued the payment order (requerimiento de pago) within 12 days, giving the debtor 20 days to pay or file an opposition (oposición).
The debtor's calculation. The Madrid contractor received the court-issued payment order and faced a decision: pay €195,000 or file an opposition that would convert the proceeding into a full juicio ordinario (ordinary trial) with legal representation costs, court fees, and the risk of a judgment including statutory interest and costs.
The contractor's abogado contacted our Madrid correspondent on day 15. The conversation was brief: the debtor had no viable defence (the delivery was documented, the materials were installed in the building), and contesting the claim would add approximately €25,000-€35,000 in legal costs with no realistic prospect of success.
Settlement: €195,000 paid in full on day 31. No opposition filed. The debtor also paid statutory interest under Spain's Ley 3/2004 (transposing EU Late Payment Directive) at ECB rate plus 8% for the period of delay.
The Madrid intelligence note
Madrid's Juzgados de Plaza de Castilla process a high volume of procedimientos monitorios and are experienced with international creditor claims. Spain's limitation period for commercial claims is five years (Article 1964 of the Código Civil). The procedimiento monitorio is effective because it forces the debtor to make an active decision: pay or defend. Most solvent debtors choose to pay when the documentary evidence is strong, because the cost of defence exceeds the cost of payment.
For claims above €250,000, the juicio cambiario (bill of exchange procedure) or standard civil proceedings apply, requiring legal representation. For these larger claims, the embargo preventivo (precautionary seizure) under Article 721 of the LEC provides pre-judgment asset protection.
If you're holding receivables against Spanish entities, the procedimiento monitorio is faster and more accessible than most international creditors realise. Brief our Madrid team for a Spanish enforcement assessment.
