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Product Liability 2009 - Arnold & Porter LLP

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Spain<br />

296<br />

Lovells <strong>LLP</strong> Spain<br />

be filed on classic grounds of contract or tort liability provided the<br />

time limitation for such actions has not expired.<br />

Actions brought under contractual liability are barred after fifteen<br />

years (Article 1964 of the Spanish Civil Code).<br />

Actions in tort liability are barred after a one-year period which<br />

runs from the moment when the victim had knowledge of the injury<br />

(Article 1968 of the Spanish Civil Code).<br />

The age or condition of a party, do no affect the calculation of any<br />

time limit.<br />

5.3 To what extent, if at all, do issues of concealment or fraud<br />

affect the running of any time limit?<br />

Concealment and fraud may affect the running of time limits if they<br />

hinder the claimant from knowing who the party responsible for the<br />

damage is.<br />

6 Remedies<br />

6.1 What remedies are available e.g. monetary compensation,<br />

injunctive/declaratory relief?<br />

Monetary compensation as well as injunctions to do, injunctions to<br />

cease to do and injunctions to pay are available remedies. Bearing<br />

in mind the nature of the actions that might be brought in product<br />

liability cases, monetary compensation will be the most commonly<br />

used remedy.<br />

6.2 What types of damage are recoverable e.g. damage to the<br />

product itself, bodily injury, mental damage, damage to<br />

property?<br />

Under the strict product liability system, pursuant to Article 129 of<br />

the Consumer’s Act, the recoverable damages are the damages<br />

caused by the defective product to the victim itself (i.e., death or<br />

personal injury) and to goods (other than the defective product<br />

itself) provided that the said goods are aimed for private use and the<br />

victim has used them principally for that purpose.<br />

Damages to the product itself are not covered under the strict<br />

product liability regime (Article 142 of the Consumer’s Act).<br />

In line with the 1985 EC Directive as regards the ceiling on the<br />

producer’s liability for death or bodily damage caused by identical<br />

products with the same defect, the maximum amount of liability<br />

arises to 63,106,270.96 Euros (Article 141 Consumer’s Act).<br />

6.3 Can damages be recovered in respect of the cost of<br />

medical monitoring (e.g. covering the cost of investigations<br />

or tests) in circumstances where the product has not yet<br />

malfunctioned and caused injury, but it may do so in<br />

future?<br />

Only the loss directly caused by the product and which the injured<br />

party has actually suffered in the past or which the victim is certain<br />

to suffer in the future may give rise to liability for damages.<br />

Therefore, the possible future damage may not be compensated.<br />

As for medical monitoring expenses incurred in order to control the<br />

evolution of the risks of illness or injury associated with the<br />

defective product, or as regards the costs of a surgical operation<br />

preventing the risk created by the defective product, they are<br />

generally not recoverable.<br />

6.4 Are punitive damages recoverable? If so, are there any<br />

restrictions?<br />

In the Spanish system of civil liability, the damages granted to the<br />

injured party are supposed to compensate the injury, not to punish<br />

the liable party. Their amount must correspond to the exact extent<br />

of injury. Therefore, there are no punitive damages under Spanish<br />

civil law.<br />

In a contract, the parties may stipulate a liquidated damages clause<br />

which may provide for an amount of damages which exceeds or<br />

limits the amount of damages resulting from the sole breach of a<br />

contractual duty. The judge has a discretionary power to reduce or<br />

increase the amount fixed by such clauses, if the main obligation<br />

has been partially or irregularly fulfilled by the debtor (Article 1154<br />

of the Spanish Civil Code).<br />

6.5 Is there a maximum limit on the damages recoverable<br />

from one manufacturer e.g. for a series of claims arising<br />

from one incident or accident?<br />

The only limit applies to the producer’s liability for death or bodily<br />

damage caused by identical products with the same defect. The<br />

maximum amount of liability in those cases arises to 63,106,270.96<br />

Euros (Article 141 Consumer’s Act).<br />

There are no maximum limits for the total amount that a liable party<br />

may be required to pay to injured parties regarding damages to<br />

property caused by the defective product.<br />

6.6 Do special rules apply to the settlement of<br />

claims/proceedings e.g. is court approval required for the<br />

settlement of group/class actions, or claims by infants, or<br />

otherwise?<br />

Court approval is not required for the settlement to be applied by<br />

the parties, which will be governed by general contract law.<br />

Nevertheless, once the judicial proceedings have been initiated the<br />

parties may request the court to ratify their settlement agreement. If<br />

the settlement is ratified by the court, in the event it is not fulfilled,<br />

the parties may request its judicial enforcement.<br />

There are no special rules for the settlement of groups/class actions.<br />

6.7 Can Government authorities concerned with health and<br />

social security matters claim from any damages awarded<br />

or settlements paid to the Claimant without admission of<br />

liability reimbursement of treatment costs, unemployment<br />

benefits or other costs paid by the authorities to the<br />

Claimant in respect of the injury allegedly caused by the<br />

product. If so, who has responsibility for the repayment of<br />

such sums?<br />

Government authorities concerned with health and social security<br />

matters are entitled to claim against the party responsible for the<br />

damage the reimbursement of treatment costs, unemployment<br />

benefits or other costs paid in respect of the injury allegedly caused<br />

by the product.<br />

7 Costs / Funding<br />

7.1 Can the successful party recover: (a) court fees or other<br />

incidental expenses; (b) their own legal costs of bringing<br />

the proceedings, from the losing party?<br />

One must here distinguish between the court fees, the other<br />

WWW.ICLG.CO.UK<br />

ICLG TO: PRODUCT LIABILITY <strong>2009</strong><br />

© Published and reproduced with kind permission by Global Legal Group Ltd, London

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