PANAMA Law and Practice Contributed by: Jorge Molina Mendoza and Alberto de Urriola Rubio, FABREGA MOLINO
6.7 Consequences of a Respondent’s Non- Compliance If a respondent fails to comply with the terms of an injunction, the court may find the respondent in con- tempt of court, which can result in their imprisonment for up to six months. Alternatively, the judge may fine the person, based on their assets. In addition, the person may be held liable for damages for failure to comply.
• conservative measures, in general. Under the current legislation, the seizure of assets requires verification of the general conditions of all precautionary measures: (i) danger in delay, (ii) appear- ance of good law, and (iii) security to cover possi- ble damages. The current legislation sets specific amounts for security, unlike the previous legislation. The same standards apply to provisional suspension as to other precautionary measures. 6.2 Arrangements for Obtaining Urgent Injunctive Relief It is difficult to determine how quickly injunctive relief can be obtained, even if the circumstances are urgent, because some courts work faster than others. There are no arrangements for out-of-hours judges or simi- lar. Injunctive relief can be requested and granted before the complaint is filed. However, current legislation stipulates that the request for seizure of assets must be decided within a maxi- mum of three days from its submission to the com- petent court. 6.3 Availability of Injunctive Relief on an Ex Parte Basis Injunctive relief may be obtained on an ex parte basis, as a general rule. 6.4 Liability for Damages for the Applicant The applicant can be held liable for damages suffered by the respondent if the respondent successfully dis- charges the injunction, and the applicant is required to provide security for such potential damages. This is applicable to ex parte injunctions. 6.5 Respondent’s Worldwide Assets and Injunctive Relief Injunctive relief cannot be granted against worldwide assets of the respondent, only assets located in Pan- ama. 6.6 Third Parties and Injunctive Relief Injunctive relief cannot be obtained against third par- ties.
7. Trials and Hearings 7.1 Trial Proceedings
Until the legal reform came into effect in October 2025, civil proceedings were primarily conducted in writing. However, the reform promotes oral proceed- ings. Although the complaint and response are sub- mitted in writing, the parties are subject to preliminary and final hearings, where they must present evidence and submit their motions orally. The judge may decide the case orally or in writing. 7.2 Case Management Hearings Since October 2025, civil proceedings have essen- tially consisted of two hearings. The first is called the “preliminary hearing,” in which the subject matter of the dispute is defined, the disputed facts are estab- lished, evidence is admitted, and exceptions to prior and special rulings are decided. Subsequently, the “final” hearing is held, during which evidence is presented, such as witness and expert examinations, documents and other previously ordered materials. The parties then present their clos- ing arguments and the judge issues their ruling, which may take place immediately or within a maximum of 20 days. 7.3 Jury Trials in Civil Cases Jury trials are not available in civil cases. 7.4 Rules That Govern Admission of Evidence The Panamanian system stipulates that evidence must be relevant to the subject matter of the proceed- ings; only evidence that is irrelevant to the facts in dispute, legally ineffective, or unlawful is inadmissible.
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