PANAMA Law and Practice Contributed by: Jorge Molina Mendoza and Alberto de Urriola Rubio, FABREGA MOLINO
an arbitration, without having agreed to the arbitration clause, only occurs when there are reasons, causes or circumstances of such magnitude and relevance between that third party and the parties in conflict that the third party’s involvement is necessary for the fair resolution of the dispute.
and establishes procedural rules. Additionally, each authorised arbitration administration centre has adopted its own regulations. 7.2 Procedural Steps The components of the arbitration process in Pan - ama are framed in compliance with the principle of due process, such as the adversarial principle, the opportunity to present evidence, and to practise due process. However, there are some requirements by law, such as: the rule that when one of the parties is a state or a state entity, there must be three arbitrators, or when arbitration is based on the law, the arbitrators must be lawyers. 7.3 Powers and Duties of Arbitrators The law in Panama states that arbitrators can be of any nationality unless otherwise agreed by the par - ties. In the case of international arbitration, arbitrators may or may not be lawyers, at the parties’ choice, but when it comes to national arbitration based on law, the arbitrators must be practising lawyers. 7.4 Legal Representatives Panamanian arbitration legislation establishes that each party may be represented by whoever they choose. This leads to the conclusion that no particular qualification is required for representing the parties. 8. Evidence 8.1 Collection and Submission of Evidence According to Panama’s Arbitration Law, the parties must present their evidence along with the claim and response, respectively. The arbitral tribunal has the exclusive power to determine the admissibility, rel - evance and assessment of evidence, as well as to order the presentation or practice of necessary evi - dence at any time. It is also possible for the arbitral tribunal, on its own initiative or at the request of the parties, to seek the assistance of ordinary courts of justice in Panama or any other state for the practice of evidence. 8.2 Rules of Evidence Given the broad power of the arbitral tribunal to admit and assess evidence, it is common for parties to use
6. Preliminary and Interim Relief 6.1 Types of Relief
According to Law 131 of 2013, arbitral tribunals can decree preliminary or precautionary measures to ensure the effectiveness of the arbitration process results. Similarly, precautionary measures can be taken by ordinary courts of justice before the arbitra - tion begins or at the enforcement stage of the final award. These measures can include the maintenance or restoration of the status quo pending the resolution of the dispute, measures to prevent any current or imminent harm, and measures to preserve movable or immovable property or money. 6.2 Role of Courts Preliminary measures as such are within the power of the arbitral tribunal. However, ordinary courts can intervene at the express request of the arbitral tribunal or during the enforcement stage of the award. When preliminary orders come from a foreign-seated arbitral tribunal, they must pass through the control of the Fourth Chamber of General Business of the Supreme Court of Justice. In Panama, there are no provisions Arbitration legislation in Panama does contemplate the possibility of requiring a bond from the petitioner of a preliminary or precautionary measure. Similarly, the arbitral tribunal is empowered to order the peti - tioner to pay costs and damages caused by the meas - ure at any time during the proceedings. for emergency arbitrators. 6.3 Security for Costs
7. Procedure 7.1 Governing Rules
As mentioned previously, Law 131 of 2013 regu - lates national and international arbitration in Panama
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