International Arbitration 2025

PANAMA Trends and Developments Contributed by: Jorge Molina Mendoza and Alberto de Urriola Rubio, FABREGA MOLINO

regulates national and international commercial arbi - tration in Panama, and on the regulations of CeCAP. It prioritises arbitration law over national law in regulating the legal profession. The court explicitly stated that Law 9 of 1984, which governs the practice of law in Panama, does not apply to the representation of the parties in an arbitration, particularly when the arbitration is international in nature. It reaffirms the Principle of Minimum Intervention . The court consistently reiterates the criterion that ordi - nary courts can only intervene in arbitrations for the adoption of precautionary measures and to enforce what is finally decided in the award. It may also, in certain specific cases, examine respect for the fun - damental and procedural rights of the plaintiffs, but reiterates that it cannot examine the matter freely, as happens in an ordinary appeal.

It strengthens international arbitration in Panama. With its decision, the court has validated the participa - tion of foreign lawyers and reaffirmed that the lack of local suitability does not vitiate the arbitration proce - dure, in the sense that it is not considered a violation of public order. This decision strengthens Panama’s position as a venue for international arbitration, since it generates greater security, which is attractive for companies and law firms that practise law interna - tionally.

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