Aviation Disputes 2025 Comparisons

Portugal’s legal framework is rooted in civil law, and employs an adversarial system. The process involves written submissions and/or oral argument and requires/allows the testimony of witnesses.

There are no national courts in Portugal. A distinction is made between trial courts and appeal courts and they are organised by subject matter (eg, civil, commercial, administrative). There are no specialised courts to hear aviation disputes. Most disputes in this area are dealt with in civil courts. Judges do not hand down judgments immediately. On average, the time taken for cases to go from the initial application to judgment is one year. The law allows for ADR in disputes in the aviation sector, and there is legislation regulating the rules of voluntary arbitration.

International arbitration in Portugal is governed by Law No 63/2011, of 14 December, which is currently in force.

International arbitration has become the most accepted method for resolving international disputes in the aviation sector. The extensive experience of the author in the field enables the firm to successfully handle disputes before any seat or arbitral institution. Arbitration is widely used in aviation disputes, since it is commonly included in contracts.

Jurisdiction is divided among the courts according to subject matter, value, hierarchy and territory.

Limitation periods start to run from the moment the right could have been exercised, regardless of the change in the holder of the right. The running of the limitation period can be suspended or interrupted. Suspension of the limitation period means that the period during which it occurred cannot be included in the calculation of the limitation period. Interruption of the limitation period means that the time that has elapsed is cancelled, and the full period begins to run from the time of the act that caused the interruption.

Like prescription, forfeiture is a way of extinguishing rights by not exercising them for a certain period of time, although it has a different legal regime. The ordinary limitation period is 20 years. In addition to the ordinary limitation period, the legislature has established some shorter limitation periods.

In general, it’s not mandatory to take any steps before filing suits. This depends on each case.

The claim depends on the case and all the details of the dispute.

Service of process in aviation disputes follows the same terms as other processes carried out by the courts. A defendant outside the jurisdiction may be sued and the manner will depend on the defendant’s country of residence, as there are agreements on the subject matter between some countries (for example, between countries of the European Union).

The parties must be represented in court by a lawyer. Only lawyers certified by the Portuguese Bar Association can practise law and, therefore, represent any party in court. Portuguese law recognises attorney-client privilege.

In any litigation, the losing party must compensate the prevailing party regarding court fees, expenses and attorneys’ fees. The litigation costs can be contested. A defendant cannot obtain an order for security, requiring a claimant to post funds against potential costs.

Parties can file interim motions before any trial or a substantive hearing, depending on the case. A party may request summary resolution of particular issues/claims, or seek to summarily dismiss an opposing side’s claim in part or entirely. The timing, procedural requirements and legal threshold for such motions depend on each case.

The procedure for applying injunctive relief is simplified and urgent in nature, so it can even dispense with hearing the party against whom it is directed if the judge considers that this would jeopardise the purpose or effectiveness of the order. The assessment of the dispute is provisional and as such, in principle, does not exempt the applicant from bringing an action to enforce their right in definitive terms. This means that the precautionary measure is normally dependent on an action (known as the main action) relating to the right being protected, and can be brought as preliminary or incidental to that action. Once decided, the injunction is highly enforceable, and breaching it constitutes an offence of qualified disobedience; ie, aggravated disobedience. However, the court can dispense with the main action if it is convinced of the existence of the right being protected and if the precautionary measure is sufficient. The timing depends on the injunction.

Court proceedings are generally public. The testimony of witnesses is also public, with some exceptions, and is managed by the court. Litigation costs are limited.       

Trials generally involve oral arguments, the examination of witnesses or experts, as well as the submission of documents that culminate in a final decision. Expert evidence can be requested by the parties, in which case the court appoints an independent expert.

In judicial procedures, settlement terms cannot remain confidential. Settlement agreements can be enforced and set aside as court decisions.

A successful litigant can obtain at trial any kind of relief according to the damages suffered. Interests can be awarded for pre- and post-judgment periods, and special rules govern the calculation of damages.

In the Portuguese jurisdiction, the appeal and review mechanisms in aviation matters are the same as for other matters.

In civil cases, the possibility of appealing depends on the value of the claim. Normally, for an appeal to be allowed, the value of the case must be greater than the jurisdiction of the court that handed down the decision. In addition, the decision must have been unfavourable to the appellant and for an amount greater than half the jurisdiction of the court that handed down the decision.

To be enforceable in an aviation dispute, an arbitration agreement must fulfil the same legal requirements as other disputes. Any dispute concerning interests of a patrimonial nature can be submitted by the parties to an arbitration agreement.

An arbitration agreement relating to disputes that do not involve interests of a pecuniary nature is also valid, provided that the parties can conclude a settlement of the disputed right. Arbitration clauses are generally accepted, and Portugese law recognises the doctrine of severability, allowing an arbitration clause to remain valid even if the underlying contract is deemed invalid.

The principle of jurisdiction applies in Portugal, allowing an arbitral tribunal to decide on its jurisdiction. A party can challenge the court’s jurisdiction in court.

It can only be raised until the presentation of the defence on the merits of the case, or together with it. The national law does not permit an arbitral tribunal to assert jurisdiction over non-signatories to an arbitration agreement.

The judgments and other decisions of the arbitral tribunal may be published, without identifying information about the parties, unless any of the parties objects to this.

Arbitral tribunals in Portugal jurisdiction grant preliminary or interim relief in aviation disputes. Such relief is binding. Preliminary or interim relief may be coercively enforced upon request addressed to the courts, regardless of whether the arbitration in which it was decreed is seated outside the jurisdiction.

Portugal’s national law does not permit courts or arbitral tribunals to order security for costs.

Arbitration procedure in Portugal is governed by Law No 63/2011, of 14 December. There are mandatory procedural requirements for arbitration proceedings. Arbitrators must be independent and impartial.

There are no specific qualifications or requirements for legal representatives appearing in aviation proceedings in Portugal. These requirements do not differ for domestic litigation as opposed to international arbitration.

Parties are entitled to recover interest and legal costs in arbitration, based on national arbitration law. Portugal typically follows a “costs follow the event” principle.

There are no specific rules governing discovery, disclosure, privilege, witness statements and cross-examination in an aviation dispute. Arbitration proceedings do not differ from those governing domestic litigation.

The arbitrators must notify the parties of the final award given on the dispute submitted to them within 12 months from the date of acceptance of the last arbitrator. There are no restrictions on the types of remedies a tribunal may grant.

The challenge to an arbitration award before a state court can only take the form of a request for annulment.

To ascertain the asset position of another party, it is necessary to have in place an interim relief or an execution procedure for the arbitral tribunal decision.

A domestic judgment in Portugal can be enforced through an executive procedure that must be submitted to a court. Timing and costs depend on each case. Assets of the debtor can be frozen.

A defendant can challenge the enforcement of a domestic aviation-related judgment based, for example, on improper citation, or try to nullify the sentence.

The enforceability of a foreign judgment depends on prior review and confirmation at a Portuguese court. Timing and costs depend on each case.

The enforcement of a foreign aviation-related judgment can be challenged as in any other judgment enforcement, and depends if the parties are, for example, EU member states.

Portugal has ratified the 1958 New York Convention. The enforcement of arbitral awards is governed by Law No 63/2011, of 14 December.

The defendant may oppose the execution of an arbitration award on any of the grounds for annulment of the award.

There have not been any significant legislative or judicial developments in aviation-related commercial contract disputes in Portugal over the past year.