Can you reach an agreement on the day of the trial?

Question

José Manuel Alburquerque · Accepted Answer

Yes. The parties can reach an agreement at any stage of the proceedings, including on the day of the trial and even once they are in the courtroom, where the judge usually begins by asking them whether the dispute is still live. If they reach an agreement, they can ask the judge to approve it (“homologar”), so that it will have the effects of a judgment and can be enforced if it is not honoured. They can also jointly ask for the trial to be suspended so that they can finish negotiating, or the party who brought the claim can withdraw it, which is known as “desistir”. Costs are paid as the parties provide in the agreement. How the case is closed Both at the hearing in a “juicio verbal” (the simplified procedure) and at the preliminary hearing (“audiencia previa”) in ordinary proceedings (“juicio ordinario”), the judge begins by checking whether the parties are still unable to agree. If they have reached an agreement or are prepared to conclude one there and then, they have several options: Asking the judge to approve the agreement. The judge checks that the parties are free to dispose of what they are agreeing on and that the agreement is lawful. If so, the judge approves it and the case ends. The claimant withdrawing (“desistir”), that is, dropping the claim with the defendant's consent. Jointly asking for the trial to be suspended in order to finish negotiating or to go to mediation. A suspension requested by the parties cannot exceed sixty days. The agreement can also be concluded later, at the trial itself or while appeals are being dealt with. If a party is not present, their court agent (“procurador”) needs a special power of attorney to reach an agreement on their behalf, so it is advisable to attend in person or to have that power of attorney ready. What the agreement is worth The approved agreement has the effects of a court settlement, which is the agreement by which the parties bring a case to an end, each giving something up. If one party does not honour it, the other can apply for its enforcement in the same court, as if it were a judgment, without a new trial. It can only be challenged on the grounds that invalidate contracts, such as mistake, deception or intimidation. That is why it should be drafted without haste, even if it is concluded in the court corridor. Above all, check the amounts, the payment dates and what happens if a payment is late. Who pays the costs Costs, which are mainly the fees of the other side's lawyer and court agent, are paid as the parties state in the agreement. The most common arrangement is one of these: Each party pays its own costs and half of the common ones. One of the parties pays all of them, or a fixed amount, as part of the agreement. If the case ends because the claimant withdraws the claim with the defendant's consent, the law says that neither of them is ordered to pay costs. In any event, each party still owes its own lawyer and court agent whatever it agreed with them, even if the case ends early.