Baker Tilly enforces an Italian judgment in Spain in an international insolvency proceeding

A cross-border enforcement case with insolvency implications

From Baker Tilly, we continue to strengthen our ability to manage international proceedings of high complexity, as demonstrated by the successful enforcement in Spain of a judgment issued in Italy against an insolvent debtor. In the words of Raúl Verdejo, the partner leading the matter, this case —complex due to its cross-border nature and the financial situation of the enforced party— clearly reflects our experience in handling international proceedings of high difficulty.

The Italian ruling —issued by a court in the Lombardy region in November 2022— recognised in favour of Baker Tilly’s client a claim of approximately €200,000, including legal costs incurred in Italy. Under Spanish law, this amount was increased by additional interest and enforcement costs in Spain, amounting to approximately €60,000.

The case therefore involved the recovery of a significant amount, with the added challenge that the debtor had not voluntarily complied with the Italian judgment and, furthermore, was residing in Spain while being in a situation of insolvency in their country of origin.

From Italy to Spain: a cross-border enforcement process

To achieve the effective enforcement of the Italian judgment in Spain, the Baker Tilly team filed the corresponding enforcement claim in November 2023 before the Court of First Instance No. 6 of Reus. The filing included all documentation required under the Spanish Civil Procedure Act and Regulation (EU) 1215/2012, which enables the recognition and enforcement of judicial decisions in civil and commercial matters across the European Union without the need for prior recognition in Spain.

After reviewing the documentation and confirming compliance with all formal and substantive requirements, the court issued an order in December 2023 initiating enforcement proceedings for the full amount claimed. This marked the beginning of the subsequent asset tracing and attachment actions.

Asset tracing, bank account garnishment and property attachment

Once enforcement proceedings had commenced, Baker Tilly initiated asset tracing procedures through the court —a standard mechanism to identify assets and rights held by the debtor. As a result, bank accounts in Spain were identified and a first attachment was executed. This initial measure enabled partial recovery of the recognised claim, although it did not fully cover the outstanding amount.

Given the insufficiency of the attached balances, a request was made to extend the enforcement measures, as provided for under the Spanish Civil Procedure Act when the assets already attached are insufficient. In September 2024, the Court of Reus issued a decree ordering the preventive registration of an attachment over a property owned by the debtor in the Tarragona area. This measure secured a solid guarantee to cover both the principal amount and the interest and enforcement costs in Spain.

Registration in the Land Registry represents a decisive step in any enforcement process, as it grants public notice and priority over third parties, strengthening the position of the creditor and creating a secure framework for the potential sale of the asset if required.

A case illustrating the complexity of international enforcement

This matter highlights several of the common challenges associated with cross-border enforcement proceedings:

• The need to coordinate proceedings across two jurisdictions, ensuring the formal validity of foreign judicial documents in Spain.
• The identification of assets in a different jurisdiction from that of the original ruling, particularly where the debtor shows signs of insolvency or limited liquidity.
• The sequential execution of enforcement measures, starting with liquid assets (bank accounts) and progressing to real estate when necessary.
• The combined application of national and European regulations, including the Spanish Civil Procedure Act and Regulation (EU) 1215/2012.

Despite these challenges, we successfully ensured the effectiveness of the Italian judgment and the full recovery of the recognised amounts in favour of our client, further strengthening our expertise in international debt recovery.

A specialised team in cross-border litigation

This case reinforces the strong experience of Baker Tilly’s litigation team in recognition and enforcement of judicial decisions, as well as in the identification and attachment of assets across multiple jurisdictions. Our involvement reflects the firm’s commitment to excellence in managing complex litigation, particularly in cross-border contexts requiring coordination between different legal systems.

We continue to work towards consolidating our position as a leading firm in Spain in international enforcement proceedings and in protecting the interests of our clients in multi-jurisdictional legal environments.