THE BOTTOM LINE
- New Appeal Opportunities: A recent CJEU ruling (the Kubera case) provides a new lifeline for appeals to Spain’s Supreme Court. The court must now assess potential EU law issues before deciding on the admissibility of an appeal.
- Shift in Litigation Strategy: Companies litigating in Spain must now frame their Supreme Court appeals with a potential EU law angle from the very beginning. This procedural change can be used strategically to ensure a case is heard.
- Increased Scrutiny on Rights and Governance: The high-level dialogue also covered fundamental rights and the rule of law, signaling that corporate compliance, ESG, and governance issues remain under a dual microscope from both national and EU judiciaries.
THE DETAILS
Delegations from Spain’s Supreme Court and the Court of Justice of the European Union (CJEU) recently held a significant working meeting to align on key European legal principles. Led by their respective presidents, Isabel Perelló and Koen Lenaerts, the meeting underscored the Spanish court’s commitment to the EU legal order. While discussions covered broad topics like judicial independence, the central focus was a recent CJEU judgment that directly impacts how final appeals are handled not just in Spain, but across the Union.
The game-changer is the CJEU’s Grand Chamber ruling in the Kubera case (15 May 2024). This judgment establishes a critical new procedural step for national courts of last resort, such as the Spanish Supreme Court. Previously, these courts could dismiss an appeal on purely national procedural grounds—ruling it inadmissible—without considering its substance. The Kubera ruling upends this practice. Now, before dismissing a final appeal, the court must first determine if it is obligated to refer a question on the interpretation of EU law to the CJEU. This prevents national courts from acting as a final filter that could block the uniform application of EU law.
For businesses and their legal teams, this is more than a technicality; it’s a new strategic tool. The ruling effectively forces Spain’s Supreme Court to engage with EU law arguments at a much earlier stage. The meeting also featured discussions on the multi-level protection of fundamental rights, weaving together national constitutions, the EU Charter, and the European Convention on Human Rights. This focus, combined with an emphasis on the rule of law, sends a clear message: the judiciary at both national and EU levels is increasingly harmonized, ensuring that legal standards for corporate conduct and governance are rigorously enforced across a complex, layered legal landscape.
SOURCE: Poder Judicial (Spain)
