Time limits for compliance with obligations after the end of the Covid19 state of emergency
At the time of writing we are still in the middle of the uncertainly that has arisen as a consequence of the COVID19 health crisis which has caused many problems from a legal point of view due to the interruption of many civil law, administrative law and judicial procedural terms for the filing of paperwork, appeals, the payment of taxes and other procedures in general. In this article it is impossible to give a detailed answer to all of the possible legal scenarios that have arisen but we will have a look at some of the most common issues which affect specific obligations.
Regarding the Civil Code, Royal Decree 463/2020 dated 14th March which regulated the state of emergency caused by the COVID19 health crisis establishes that the terms of prescription or the expiry of terms for the filing of legal actions or other rights would be suspended during the state of emergency and its extensions. This exceptional emergency situation was ended last 4th June pursuant to article 10 of Royal Decree 537/2020 dated 22nd May and as such, with effects from 4th June, the suspension of the terms of prescription and expiry of rights were lifted.
Regarding the terms or periods regulated by the Civil Code that are calculated by days, the initial date does not vary, the days between 14th March 2020 and 3rd June 2020 are not counted and the calculation of the term restarts on 4th June onwards. For terms calculated by months, the date of expiry is calculated by adding 82 calendar days to what would have been the last day of the term calculated by months.
In the field of rental contracts, last 1st April Royal Decree-Law 11/2020 entered into force and regulated amongst other matters eviction procedures and contracts for the rental of habitual residences. All those people who found themselves in a situation of social or economic vulnerability as a consequence of COVID19 and who could prove the impossibility of finding alternate accommodation could apply for the suspension of eviction procedures once the suspension of the legal terms were lifted after the state of emergency. Any such request would have to be considered by the authorities and would not be able to last longer than 6 months from the date of the entry into force of the said act of legislation, which is until 30th September.
It is considered that people are in a situation of vulnerability when:
a.- They have been made redundant, had their work hours cut or in the case of a business if there has been a substantial fall in revenue as a direct consequence of the COVID19 health crisis.
b.- The amount of the essential utility bills for the property exceed 35% of the income of the family unit.
In the case of rental contracts that expired between 1st April and the two month period after the end of the state of emergency, an extension of 6 months may be applicable with the same terms and conditions as those of the contract that had been in place. A request from the tenant is required and the landlord is obliged to accept the request unless the parties mutually agree between themselves different terms and conditions.
Regarding contracts, in general the contractual terms that had been foreseen for the fulfilment of obligations should not be affected even though many restrictions have been introduced which limit mobility and commercial activities. As such, and unless there are specific exceptions such as in the case of the suspension in some cases of the obligation to make mortgage repayments for one’s habitual residence in cases of social vulnerability, contractual obligations should still be fulfilled within the original agreed term.
However, if, as a consequence of the state of alarm the contracting parties could not fulfil their obligations within the term originally agreed on due to force majeure and depending on the nature of the obligation, the terms and conditions of the agreement could be altered although this would depend very much on the individual and specific circumstances of each case.