This April, Organic Law 1/2025 of 2 January on measures to improve the efficiency of the Public Justice Service has come into force. This regulation forms part of a broader legislative package aimed at transforming and modernising the judicial system. Its objective is clear: to ease the burden on the courts and encourage the use of appropriate dispute resolution methods (ADR) as the primary route for resolving conflicts in a more agile, flexible and collaborative way.
However, beyond its procedural implications, this law has a direct impact on the business landscape—especially on family businesses, where anticipation, prevention, and asset protection play a key role.
In this alert, we analyse the key aspects of the new regulation and how it affects the legal and organisational structures of family-owned companies.
What does Organic Law 1/2025 introduce?
The main innovation of this law lies in the requirement to attempt an ADR method before initiating certain civil and commercial court proceedings. This is no longer an optional step, but a mandatory legal prerequisite for a claim to be admitted by the courts.
In practical terms, this means that parties will be obliged to seek an out-of-court solution in certain types of cases—such as debt recovery claims, shareholder disputes, contractual breaches, or disagreements over shared assets.
Recognised ADR methods include mediation, conciliation, arbitration, and assisted negotiation conducted by qualified professionals.
The law also strengthens the role of justice offices and ADR professionals, who become key figures in any company’s legal strategy.
Why is this especially relevant for family businesses?
Family businesses have distinct characteristics that make this type of regulation particularly significant:
- Overlap between personal and professional relationships
Business conflicts often intertwine with family dynamics, which can intensify tensions and complicate resolutions. - Joint asset management
Business decisions directly affect family wealth and vice versa, making anticipation and careful planning essential. - Generational continuity
Unresolved internal disputes can jeopardise succession planning or even the long-term survival of the business.
For these reasons, well-defined ADR mechanisms tailored to each family business model become a strategic protection tool.
What are the consequences of not applying an ADR method?
Failure to comply with this procedural requirement can result in the inadmissibility of the claim, leading to lost time, increased costs, and a loss of confidence in the process. In addition, the company may be left in a state of legal uncertainty, which can be particularly damaging in times of shareholder tension or financial stress.
From a preventive perspective, it is essential not to wait for a conflict to arise, but to integrate these mechanisms into the company’s legal culture and structure.
How can a family business adapt?
The entry into force of this law should be seen as an opportunity to review, reinforce, and modernise the legal instruments underpinning the family business. Key actions include:
Reviewing the articles of association and shareholders’ agreements
Many existing corporate statutes and family protocols lack effective ADR provisions. Now is the time to introduce clear clauses that define:
- The type of ADR method to be used in each case
- Who will bear the costs
- How the neutral party will be selected
- The consequences of refusing to participate
Incorporating ADR clauses in contracts
Whether in internal relationships (among partners or family members) or external ones (with suppliers, clients, or collaborators), it is advisable to include these clauses to promote foresight and facilitate solutions before disputes escalate to court.
Strengthening family wealth protection
During conflicts—especially those that escalate into legal proceedings—both business and personal assets may be exposed. Efficient asset structuring (e.g. holding companies, branch separation, succession planning) helps safeguard the continuity of the family project.
Seeking expert advice
Not all ADR methods are suitable for every situation. Expert advice in commercial law, corporate governance, and succession planning is key to designing tailored, effective strategies.
A new context, a new approach to prevention
The approval of Organic Law 1/2025 is not a mere technical adjustment of the justice system—it represents a paradigm shift in conflict resolution, requiring companies, especially family businesses, to embrace a new mindset: from reaction to prevention.
The tools are available, but they must be correctly implemented and aligned with the reality and values of each family business.
At LEIALTA, we have years of experience helping family-owned businesses anticipate challenges, protect their assets, and secure generational continuity through robust, tailored legal structures. If you believe this new law may affect your business—or simply want to stay ahead—our team of specialists is at your disposal.
