IMPORTANT: This article analyzes a successful case resolved in accordance with the contractual, regulatory, and case law framework applicable at the time of its publication. Currently, any claim in this regard must be reviewed based on the specific case, current case law, consumer protection regulations, and Law 6/2023 of March 17 on Securities Markets and Investment Services, as well as, where applicable, MiFID regulations and the rules governing the marketing of investment products.
Casimiro Galán Garrido, an attorney with IN DIEM Abogados, obtained a judgment in full favor of his client from the Provincial Court of Seville, issued on July 29, 2014, against Barclays Bank S.A., in a claim arising from the sale of preferred shares.
The ruling fully upheld the lower court’s decision and ordered Barclays Bank S.A. to refund all the amounts claimed—in this case, €53,155.53—as well as to pay the corresponding costs.
The matter involved the sale of preferred shares to a client who lacked sufficient financial knowledge to understand the true nature, complexity, risks, and perpetual nature of the product purchased.
You can try to find the ruling of the Provincial Court of Seville on the official CENDOJ search engine of the General Council of the Judiciaryby entering the following search criteria: the court, the date of the ruling, the defendant, and the subject matter: Seville Provincial Court, July 29, 2014, Barclays Bank S.A., preferred shares.
The Complexity of Preferred Stock
Preferred shares were marketed for years as attractive investment products due to their apparent profitability. However, their actual legal and financial structure was highly complex, especially for retail clients, consumers, or individuals without specialized financial training.
The issues surrounding these products were related to factors such as the lack of a fixed maturity date, the contingent nature of the returns, the potential loss of invested capital, liquidity challenges, and trading on secondary markets.
For this reason, the financial institution’s duty to provide information was essential. It was not enough to simply have the customer sign the contractual documents or to include generic references to the product; rather, it had to be demonstrated that the customer truly understood the nature of the investment and the risks involved.
The argument upheld by the ruling
The ruling upheld the position set forth in the Madrid Provincial Court of Appeal’s decision of March 24, 2014, and emphasized the importance of explaining the true nature of preferred shares to the client. In particular, it highlighted the uncertainty inherent in these products:
“Preferred shares are characterized by uncertainty regarding the repayment of the principal invested, interest payments, and the ability to sell them.”
This idea is central to understanding the case: if the customer does not receive clear, sufficient, and understandable information about the nature of the product, its perpetual nature, its risks, and the limitations on recovering the investment, the validity of the consent given may be affected.
Duty to Disclose and Customer Profile
In claims involving complex financial products, one of the key elements is determining whether the financial institution adequately fulfilled its disclosure obligations. The financial institution must explain the product in a clear and understandable manner, tailored to the customer’s profile.
It is also important to assess whether the client had prior experience with complex investments, whether he or she received sufficient documentation, whether the appropriate tests were administered, whether he or she was warned of the actual risks, and whether there was an adequate explanation regarding the possibility of loss or illiquidity of the product.
The burden of proving that the information provided is accurate and sufficient often takes on particular importance in proceedings of this nature, since the mere signing of documents does not always demonstrate that the client truly understood the product purchased.
Error in Consent and Nullity of the Contract
The sale of preferred shares has given rise to numerous legal claims based on the existence of a mistake in consent. This mistake can occur when a customer enters into a contract believing that they are purchasing a safe, liquid product—or one similar to a deposit—when in reality it is a complex and risky instrument.
For the claim to be successful, it is necessary to analyze the contractual documentation, the sales process, the explanations provided by the financial institution, the customer’s profile, their prior investment experience, and the existing relationship of trust with the bank branch.
In cases of this nature, the purpose of the claim is typically to have the contract declared null and void or unenforceable and to obtain a refund of the amounts paid, with the corresponding financial consequences depending on the specific case.
A Success Story in Banking Law
In the case in question, the Provincial Court of Seville upheld the claim in its entirety and ordered the bank to refund the amounts claimed. The amount awarded totaled €53,155.53, in addition to the corresponding award of costs.
This outcome highlighted the importance of a legal strategy focused on product analysis, compliance with disclosure requirements, verification of the client’s profile, and a true understanding of the risks assumed.
For IN DIEM Abogados, banking law matters require a detailed review of the contractual documentation, communications with the financial institution, the client’s investment history, and the specific circumstances surrounding the agreement.
Preguntas frecuentes sobre participaciones preferentes
¿Qué son las participaciones preferentes?
Las participaciones preferentes son productos financieros complejos que pueden presentar riesgos relevantes para el inversor, como falta de liquidez, carácter perpetuo, remuneración condicionada y posible pérdida del capital invertido.
¿Por qué las participaciones preferentes dieron lugar a reclamaciones judiciales?
Muchas reclamaciones se basaron en que los clientes no habrían recibido información suficiente, clara y comprensible sobre la verdadera naturaleza del producto, sus riesgos, su falta de liquidez o su carácter perpetuo.
¿Puede reclamarse la nulidad de la contratación de preferentes?
Puede ser posible si se acredita que existió error en el consentimiento, falta de información suficiente o una comercialización inadecuada según el perfil del cliente y las circunstancias de la contratación. Cada caso debe analizarse de forma individual.
¿Qué documentos conviene revisar antes de reclamar por participaciones preferentes?
Conviene revisar las órdenes de compra, contratos, folletos informativos, test de conveniencia o idoneidad, comunicaciones con la entidad, extractos bancarios, justificantes de inversión y cualquier documento que acredite cómo se ofreció el producto.
¿Es importante el perfil del cliente en una reclamación bancaria?
Sí. El perfil del cliente es relevante para valorar si la entidad bancaria explicó adecuadamente el producto y si el inversor podía comprender sus riesgos. No es lo mismo un cliente minorista sin experiencia financiera que un inversor con conocimientos especializados.
¿Siguen siendo posibles las reclamaciones por participaciones preferentes?
Depende del caso concreto, de las fechas, de la documentación disponible, de la acción ejercitable y de la jurisprudencia aplicable. Por eso es necesario revisar la operación, el producto contratado y los plazos antes de iniciar cualquier reclamación.
Experts in bank claims and complex financial products
At IN DIEM Abogados, we provide legal advice and representation to individuals, consumers, investors, and businesses in proceedings related to preferred shares, complex financial products, banking claims, lack of disclosure, errors in consent, and the liability of financial institutions.
Our team handles cases that require a detailed assessment of banking documentation, the client’s profile, the contract process, and the risks associated with the product being sold. In these types of proceedings, legal counsel helps organize the evidence, assess the viability of the claim, and design an appropriate litigation strategy.
- Claims regarding preferred shares and complex financial products.
- Claims based on errors in consent and lack of banking information.
- Protection of consumers and retail investors against financial institutions.
- Analysis of contracts, purchase orders, and fitness-for-purpose and suitability tests.
- Judicial and extrajudicial claims in banking and financial matters.
If you need to review a bank investment, a claim related to complex financial products, or a contract entered into with a financial institution, you can contact our team to receive an initial legal assessment.
In-person, online, and urgent service. 24-hour support.
IN DIEM Abogados provides in-person, online, and emergency legal assistance from its offices in Madrid, Seville, Málaga, Marbella, Estepona, Las Palmas de Gran Canaria, Almería, and Huelva, serving clients throughout Spain.
The firm has a multidisciplinary team composed of specialized attorneys and professionals with experience in the judicial, tax, commercial, technology, criminal, civil, administrative, and banking fields, which allows it to approach each matter from a technical, strategic, and practical perspective.
In addition, IN DIEM Abogados offers urgent assistance when the nature of the matter requires an immediate response or a quick initial assessment of the case.
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