PANAMA Law and Practice Contributed by: Jorge Molina Mendoza and Alberto de Urriola Rubio, FABREGA MOLINO
8. Settlement 8.1 Court Approval
Evidence obtained in violation of due process is null and void. 7.5 Expert Testimony Expert testimony is permitted at trial. The parties may introduce expert testimony, and the court itself may seek expert testimony or guidance. 7.6 Extent to Which Hearings Are Open to the Public In principle, hearings of the judiciary are public, but the parties may request that they be held in private when there is a risk to their image or privacy or, in general, for reasons of public order. 7.7 Level of Intervention by a Judge In view of the transition from a written to an oral pro- cess, the judge is expected to play a more active role in directing and driving the judicial process. For exam- ple, the judge has the power to encourage the parties to resolve their differences through ADR methods. In oral proceedings, the judge decides on the subject matter of the debate, the disputed facts, and the evi- dence admitted. The judge also sets the date for the final hearing, at which the evidence is presented and the merits of the case are decided. During question- ing, the judge may ask questions to the witnesses and summarily rule on objections raised by the parties. 7.8 General Timeframes for Proceedings It is difficult to determine general timeframes for pro- ceedings from commencement of claim through to trial, and the typical duration of trials, for commercial disputes, because some courts work faster than oth- ers. However, the new civil procedure law establishes time limits with legal consequences for non-compliance by the judge hearing the case. For example, civil proceedings are limited to one year from the date of notification of the admission of the claim. For the second instance, a maximum period of six months is established, counted from the date the file is assigned to the presiding judge.
In Panama, there are two types of settlement based on when the settlement takes place: judicial and extra- judicial settlement. Court approval is only required for judicial settlements. Court approval is limited to reviewing whether the matter may be settled (for example, cases regarding the civil status of a person may not be settled) and whether the parties are legally capable of doing so (for example, if the person acting on behalf of a company has the authority to do so and to settle). 8.2 Settlement of Lawsuits and Confidentiality The settlement of a lawsuit may remain confidential only if it is extrajudicial. Judicial settlements are public because they become part of the case file, which is public. 8.3 Enforcement of Settlement Agreements Settlement agreements may be enforced by the court that is hearing the main process, and the court may use different mechanisms to enforce the agreement, depending on the matter that is being enforced. For example, if a party’s bank account was frozen by an injunction, the court may order the bank to give the money to the corresponding party. 8.4 Setting Aside Settlement Agreements Settlement agreements cannot be set aside; they have a res judicata effect. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant The forms of award available to a successful litigant depend on what the party requested in its complaint. A judge may not award something not requested in the complaint, or if the complaint claimed a specific amount of money, the court may not grant a higher amount. The losing party must also pay the expenses (for example, costs for reproducing documents) and the costs (lawyers’ fees) related to the process.
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