The company refuses consumer arbitration: what is left to you
Last updated 2026-09-01 · Reviewed by Jaime Piñeira Pardo, registered with the ICAM bar, no. 138826
The short answer
Consumer arbitration binds only a company that has adhered to it, so its refusal does not close the matter, it moves it to the courts. Before suing you must evidence the attempt to negotiate, and the claim follows the juicio verbal where it does not exceed fifteen thousand euros. If there was already an award and you want it set aside, you have two months.
You contracted a bathroom refurbishment for 6,200 euros. The company left the work half done, with the plumbing unfinished and damp on the neighbour's ceiling. You filed a consumer arbitration request with the Junta Arbitral and waited four months. The answer comes in two lines: the company has not adhered and does not accept arbitration, so the file is closed. Meanwhile the work is still unfinished, the neighbour has already written to you claiming, and the company does not answer the phone.
The case, in five lines
- What is brought
- A court claim to enforce the contract or to terminate it with repayment of what was paid, plus the damage caused, once the arbitration route has failed for want of adhesion by the company.
- Before which court
- The Civil section of the Tribunal de Instancia (the first-instance court), through the juicio verbal where the amount does not exceed fifteen thousand euros. Setting aside an award falls to the Civil and Criminal Chamber of the Tribunal Superior de Justicia (the regional high court).
- Deadline
- The action to set aside an award must be brought within two months of its notification or, where correction, clarification or supplementation was sought, from the decision on that request or from the expiry of the time to make it. The money claim follows the five year period of Article 1964.2 of the Civil Code.
- Who can bring it
- The consumer or user who is a party to the consumer relationship. For setting aside an award, the party that alleges and proves one of the listed grounds, with the Public Prosecutor intervening where appropriate.
- Financial risk
- Civil litigation exposes you to costs if the claim is dismissed, unlike arbitration. And setting aside an award does not review the merits: if it succeeds, you do not win the case, what was decided is simply left without effect.
Arbitration binds only the company that submitted to it
Royal Decree 231/2008 defines the Consumer Arbitration System as institutional out of court arbitration, binding and enforceable on both parties, for disputes between consumers and businesses over rights recognised to the consumer by law or by contract. Binding and enforceable, yes, but only from the moment an arbitration agreement exists, and that agreement needs the will of both parties.
Article 24 explains how it is formed. The agreement may be a clause in the contract or a separate agreement, must express the will to resolve disputes through this system and must be in writing, in a signed document or in an exchange of communications allowing a record of the agreement to be kept, including electronic media accessible for later consultation. Without that record there is no submission to hold against the company.
Where no agreement exists in any of those forms, the same article provides that the Junta Arbitral de Consumo, on receiving the request, refers it to the respondent for acceptance. That is exactly what happened in your case: the company was asked and the company said no. The refusal is lawful and cannot be attacked, but neither does it close anything.
Before writing it off, check whether it had adhered
Article 25 governs the public offer of adhesion: a unilateral, public offer made by the company in writing or electronically, stating whether the arbitration will be decided in law or in equity, the period of validity of the offer and whether prior mediation is accepted. If any of those points is missing, the offer is understood as made in equity, for an indefinite period and with prior mediation accepted.
Where such a public offer exists, Article 24 provides that the arbitration agreement is validly formed by the mere submission of the request, provided it falls within the scope of the offer. And it adds something not to be overlooked: it is also validly formed where it is shown that the request was filed while the company was using the public adhesion symbol, even though it had no right to use it.
That is why, before accepting the closure of the file, we check what the company was displaying on the day you complained: the sticker in the window, the seal on its website, the mention in the estimate or on the invoice. Under Article 25 the offer of adhesion is a single one and is understood to be made to the whole Consumer Arbitration System, although Article 26 allows limited offers in certain sectors.
An offer in law you did not accept counts as no adhesion
Article 33 contains a little known and very useful rule. Consumer arbitration is decided in equity, unless the parties expressly opt for a decision in law. If the public offer of adhesion was made for arbitration in law and the consumer did not expressly accept that in the request, it is communicated to them so they may state whether they agree to a decision in law.
And the provision closes with the consequence: where there is no agreement, the request is treated as though addressed to a company that has not adhered. In other words, the closure of the file may not be down to the company refusing, but to your not having accepted a form of arbitration that is not even the ordinary one. Knowing which of the two happened changes what is done next.
The same article recalls that the applicable legal rules and the terms of the contract support the decision in equity, which must in any event give reasons. Equity does not mean deciding without law or without reasons: it means the arbitrator is not tied to the strict application of the rule, but must explain why it decides as it does.
Without adhesion the matter goes to court by the juicio verbal
Article 250 of the Ley de Enjuiciamiento Civil (the Spanish civil litigation statute) provides in its second paragraph that claims not exceeding fifteen thousand euros, and not concerning matters reserved to the other route, are decided in the juicio verbal. Most consumer matters arriving after failed arbitration are resolved that way, with a written claim and a hearing where the evidence is taken.
The same article sends to the juicio verbal, whatever their value, other claims that may concern you: those bringing individual actions about general contract terms in the cases provided for in the legislation on that subject, and those bringing an action for an injunction in defence of the collective and diffuse interests of consumers and users.
Before anything is brought before the court, negotiation must take place. Article 5 of Organic Law 1/2025 requires, as a condition of admissibility in civil matters, prior recourse to an appropriate dispute resolution mechanism, with identity between the subject of the negotiation and that of the litigation. The arbitration request filed and refused, together with a reasoned demand, covers that step if it is properly documented.
The prior negotiation is complied with, not improvised
Article 5 itself makes clear how the requirement is met: by resorting to mediation, conciliation or the neutral opinion of an independent expert, by making a confidential binding offer or by any other negotiating activity recognised in that or other laws. And it states that it is met in particular where the negotiation is carried out directly by the parties or between their lawyers, under their instructions and with their agreement.
The requirement of identity of subject matter is the one that usually fails. If the arbitration request asked only for the works to be finished and the claim also seeks repayment of what was paid and the damage to the neighbour, that whole subject should be covered in the prior demand. The remedies sought may vary afterwards, the article says, but what is negotiated and what is litigated must coincide.
The same provision lists the cases where that step is unnecessary: enforcement claims, applications for interim measures before the claim, preliminary enquiries and the opening of non contentious proceedings, with the exceptions stated there. If there is a risk that the company will disappear or strip its assets, that door allows action without waiting.
If there is an award against you: two months and listed grounds
Where the arbitration did take place and the award goes against you, the route is no longer to sue afresh. Article 41 of Law 60/2003 allows it to be set aside only if the party seeking it alleges and proves that the arbitration agreement does not exist or is invalid, that it was not duly notified of an arbitrator's appointment or of the proceedings, or that it was otherwise unable to present its case.
The list continues: that the arbitrators decided matters not submitted to them, that the appointment or the arbitral proceedings did not comply with the parties' agreement or with the law, that they decided matters not capable of arbitration, or that the award is contrary to public policy. The grounds in letters b), e) and f) may be raised by the court of its own motion or at the request of the Public Prosecutor.
The deadline is short and unforgiving: the action to set aside must be brought within two months of notification of the award or, where correction, clarification or supplementation was requested, from notification of the decision on that request or from the expiry of the time to make it. And where the setting aside affects only severable matters, the award stands as to the rest.
How we run the case, step by step
- 1
Checking whether the company had really adhered
We check whether it was displaying the public symbol on the day of the request, whether it appeared in the register of adhered businesses and whether the offer was in law or in equity. That may reveal an arbitration agreement the company denies.
- 2
Obtaining the file from the Junta Arbitral
We request a copy of the request, of the referral to the company and of the decision closing the file. That file shows who said what and when, and supports compliance with the prior negotiation requirement.
- 3
Reasoned demand to the company
Everything to be claimed is quantified, including consequential damage, and a period to reply is given. It covers the entire subject of the future case and records the negotiating activity.
- 4
Securing the evidence before suing
The state of the works or of the product is documented, quotations to finish are gathered and the damage is valued, because in the juicio verbal there is little room to complete the evidence later.
- 5
Claim before the Civil section
We seek enforcement or termination of the contract with repayment of what was paid, plus damages, through the juicio verbal where the amount does not exceed fifteen thousand euros.
- 6
Setting aside or enforcing the award, as the case may be
If there was an unfavourable award, we assess within the two months whether any of the listed grounds applies. If it was favourable and the company does not comply, enforcement is sought without letting time pass.
The evidence that decides the case
- The complete file from the Junta Arbitral, with the request, the referral to the company and the decision closing it.
- The dated screenshot of the website or photograph of the premises showing the company displaying the public adhesion symbol.
- The contract, the accepted estimate and the general conditions, to check whether they contained an arbitration clause.
- Proof of payments and the invoices issued, which fix the amount and determine the route the matter follows.
- A third party report or quotation on what remains to be done and on the defects and damage caused.
- The award as notified with its date, if one was made, and any request for correction, clarification or supplementation.
What closes the door
- Treating the matter as lost when the Junta Arbitral closes the file. The closure only says there is no arbitration agreement, not that you are wrong or without a claim.
- Letting the two months of Article 41 of Law 60/2003 slip by while considering whether the award suits you. Once the deadline passes, the award stands even where the ground for setting it aside was obvious.
- Bringing the claim without evidencing the prior negotiation, or negotiating only part of what is later claimed, failing the identity of subject matter required by Article 5 of Organic Law 1/2025.
- Confusing setting aside an award with a second chance to argue the merits. The grounds in Article 41 are exhaustive and none of them is that the arbitrator got the assessment wrong.
- Going on paying instalments or signing completion certificates while claiming, because those acts are later relied on as acceptance of the work done.
The law that applies
- Art. 24 RD 231/2008. The arbitration agreement may be a contract clause or a separate agreement, must express the will to resolve disputes through the Consumer Arbitration System and must be in writing or in a recorded exchange of communications, including electronic media. Where there is a public offer of adhesion, it is formed by the mere submission of the request within the scope of that offer, and also where the request was filed while the company was using the public symbol even without the right to do so. With no agreement, the Junta refers the request to the respondent for acceptance. BOE-A-2008-3527
- Art. 25 RD 231/2008. Businesses may make a unilateral, public offer of adhesion to the Consumer Arbitration System, stating whether the arbitration will be decided in law or in equity, its period of validity and whether prior mediation is accepted. Absent those points, it is understood as in equity, indefinite and with prior mediation. The offer is a single one made to the whole system, and making or withdrawing it falls to the legal representative with power of disposal. BOE-A-2008-3527
- Art. 33 RD 231/2008. Consumer arbitration is decided in equity unless the parties expressly opt for a decision in law. If the public offer was for arbitration in law and the consumer did not expressly accept that in the request, it is communicated so they may agree, and if they do not, the request is treated as though addressed to a company that has not adhered. The legal rules and the contract support the decision in equity, which must give reasons. BOE-A-2008-3527
- Art. 41 Ley 60/2003. An award may be set aside only if the party seeking it alleges and proves that the arbitration agreement does not exist or is invalid, that it was not duly notified or could not present its case, that the arbitrators decided matters not submitted or not arbitrable, that the appointment or the proceedings did not comply with the agreement or the law, or that the award is contrary to public policy. Some grounds may be raised of the court's own motion or by the Public Prosecutor. The action is brought within two months of notification of the award or of the decision on its correction, clarification or supplementation. BOE-A-2003-23646
- Art. 250 LEC. It lists the claims decided in the juicio verbal whatever their value, among them individual actions about general contract terms and the injunction action in defence of the collective and diffuse interests of consumers and users. And it adds, in its second paragraph, that claims not exceeding fifteen thousand euros and not concerning the matters of the preceding article are also decided in the juicio verbal. BOE-A-2000-323
- Art. 5 LO 1/2025. It makes prior recourse to an appropriate dispute resolution mechanism a condition of admissibility in civil matters, with identity between the subject of the negotiation and that of the litigation. It is met by mediation, conciliation, a neutral expert opinion, a confidential binding offer or direct negotiation by the parties or their lawyers. It is not required for enforcement claims, prior interim measures, preliminary enquiries nor, with exceptions, non contentious proceedings. BOE-A-2025-76
Each article checked against the consolidated text published in the BOE (the Spanish official gazette).
Frequently asked questions
Can I force the company to submit to arbitration?
No. Arbitration needs an agreement, and the agreement needs the will of both parties. What can be checked is whether that will already existed: Article 24 treats the agreement as validly formed by the mere submission of the request where there is a public offer of adhesion, and even where the company was using the public symbol without any right to it. If none of that applies, the matter goes to court.
There were injuries. Is that why my arbitration was closed?
It may be. Article 2 of Royal Decree 231/2008 confines consumer arbitration to matters the parties may freely dispose of and expressly excludes disputes about poisoning, injury, death or those where there are reasonable indications of a criminal offence, including liability for damage directly arising from them. In those cases arbitration was never an option and the route was always the courts, with nothing lost.
I lost the arbitration. Can I now sue over the same thing?
No. Royal Decree 231/2008 defines this arbitration as binding and enforceable on both parties, so the award closes the dispute. All that remains is the action to set aside under Article 41 of Law 60/2003, on listed grounds and within two months of notification. It does not serve to review whether the arbitrator was right, but to deprive of effect an award made without the required guarantees.
Does the arbitration request count as prior negotiation?
It can, but that must be made certain. Article 5 of Organic Law 1/2025 requires identity between the subject of the negotiation and that of the litigation, even though the remedies sought may later vary. If the request asked only that the works be finished and you now also claim repayment and damages, that whole subject should be covered by a later demand before the claim is filed.
The award found in my favour and the company will not pay
The award is enforceable, so the merits need not be argued again: enforcement is sought before the competent court and action is taken against the company's assets. It is best not to let time pass, because companies that ignore an award are often the same ones that strip their assets. Enforcement, moreover, does not require prior recourse to any dispute resolution mechanism.
This guide explains how the action works in general. It does not replace the study of your own case: deadlines depend on when things happened and on what you have done since.