In court proceedings that conclude with a judgment ordering the payment of a specific sum of money, it is common for interest to accrue. This interest is calculated from the date of the first-instance judgment and primarily serves to compensate the creditor for the delay in payment, ensuring that the amount awarded by the court maintains its economic value until it is effectively paid. In this week’s article, we examine how court interest is applied in practice, what happens in cases of partial revocation of the judgment, and the implications for the parties involved.
General aspects of legal interest.
Article 576 of the Civil Procedure Law of Spain (LEC) establishes the so-called procedural default interest. The general rule set out in the first paragraph is that any liquidated sum awarded accrues annual interest equal to the legal interest rate plus two points. This interest accrues from the date of the first-instance judgment, at which point it begins to accumulate continuously and automatically.
It is important to emphasize that this application does not require an express request from any of the parties involved in the proceedings. It occurs automatically, ensuring that creditors begin to receive the corresponding interest from the date of the court’s decision, without the need for additional procedures or waiting for specific requests.
Appeals, partial revocations, and their effects.
However, there are exceptions. It should not be forgotten that once the first-instance judgment has been issued (and depending on the type of procedure), the parties may file an appeal. That is, the first-instance judgment is not always final. The appellate court may review certain aspects of the original decision.
Paragraph 2 of Article 576 establishes that, in cases of partial revocation of the judgment, the court hearing the appeal has the authority to adjust the accrual of court interest. In other words, the court, always with proper reasoning, may modify the “dies a quo” from which procedural default interest begins to accrue.
Practical application: partial revocations that do not affect the principal.
When a judgment is partially revoked on appeal, it is important to distinguish which parts of the ruling are modified. For example, what happens if the appeal only alters secondary aspects but leaves the principal amount to be paid unchanged? In these cases, procedural default interest continues to accrue from the first-instance judgment.
Precisely, our firm recently obtained a favourable ruling in a case of this nature. The opposing party argued that, because a partial revocation occurred on appeal, court interest should be calculated from the new judgment. We opposed this, and the court ruled in our favour, confirming that, since the principal payment had not been modified, interest should accrue from the first-instance judgment. You can read the ruling clicking “HERE”.
Conclusions.
Court proceedings require strategic planning and a deep understanding of procedural law, particularly when significant interests are at stake that may extend beyond purely economic matters. At White-Baos Lawyers, we are experts in court cases: contesting wills, claims against developers, evictions, debt recovery, contentious divorces, resolution of sales contracts, among others. If you require specialized advice or have a complex case, do not hesitate to contact us.
The information provided in this article is not intended to be legal advice but merely conveys information relating to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
White & Baos 2025 – All Rights Reserved.
