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Spanish Supreme Court position on the effects of nullity of early termination clauses

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16 September 2019

On 11 September, the Spanish Supreme Court, in a plenary meeting, has issued ruling number 463/2019, stating its criteria on the effects of nullity of early termination clauses included in consumer mortgage loan agreements.

In this decision the Supreme Court has followed the most recent case-law of the European Court of Justice (ECJ) on the matter (i.e. decision dated 26 March 2019 regarding cases C-70/17 and C-179/17 and decisions regarding cases C-92/16, C-167/16 and C-486/16).

The Spanish Supreme Court ruling was eagerly awaited as there are currently thousands of suspended or dismissed mortgage enforcement processes in Spain as a result of the absence of interpretative criteria from the Supreme Court on the practical application of the ECJ rulings by the Spanish national courts.​