PANAMA Trends and Developments Contributed by: Jorge Molina Mendoza and Alberto de Urriola Rubio, FABREGA MOLINO
Coming into Force of Panama’s New Civil Procedure Code
to reform civil and commercial justice. This effort cul- minated in Law 402 of 9 October 2023, which came into full force in the Republic of Panama on 11 Octo- ber 2025. Hence, the current topic of discussion is precisely the reform of civil justice through Law 402. This article will address some of the principles that inspire the new procedural law, the main new features incorporated into the regulations, and the treatment of appeals in contrast to the previous legislation that has now been repealed. Guiding principles The new regulation begins with a title dedicated to the guiding principles, highlighting among them the con- stitutionalisation of the process, linked to the control of conventionality. The aim is to ensure that the inter- pretation of the rules is carried out in accordance with the guarantees enshrined in the National Constitution, as well as in the international treaties and conventions on human rights that Panama has accepted. Also noteworthy, in contrast with the previous regula- tions, is the emphasis on oral proceedings and the concentration of procedural acts. This is perhaps the most significant change in the new regulations, as the previous civil process was predominantly written. The new code stipulates that “the central proceedings of the process shall preferably be conducted orally, through public hearings.” However, the written system remains in place for preparatory proceedings (com- plaints, responses, precautionary petitions), as well as for appeals. Oral proceedings presuppose that the judge presides over and directs the hearings; failure to comply with this requirement results in the absolute nullity of the proceedings. Promotion of alternative dispute resolution methods While some provisions in the previous legislation encouraged the judge to help the parties to reach an agreement that would end the legal dispute, this new legislation elevates this notion to a guiding principle.
In 2016, an ambitious reform of the rules governing criminal procedure came into full effect throughout the Republic of Panama, marking a 180-degree shift from a markedly inquisitorial system to an adversari- al, accusatory criminal process. Panama had lagged behind other criminal justice systems in the region, so this reform was welcomed with enthusiasm by the legal community and the general public, who were eager to see shorter trial times while still respecting the minimum fundamental guarantees that all defend- ants should receive. The reform introduced ideas that, to some extent, were already present in the previous system but were not properly respected and implemented, such as respect for the impartiality of judges, the specialisa- tion of competences, and the constitutionalisation of the process. A notable innovation was the introduction of alternative dispute resolution mechanisms, which had been completely absent from the earlier criminal process. It should be recognised that, almost ten years after its entry into force, the reform has yielded good results, as some situations that were undesirable for any jus- tice system have been reduced. New challenges have also arisen and are being addressed periodically. Most importantly, response times have been drastically reduced, avoiding the problematic situation in which people remained under criminal investigation for years or decades without being properly tried. The guiding principles remain the same: to seek a swift, modern, and participatory process. Civil proceedings, meanwhile, had not been thor- oughly reviewed for more than a quarter of a century. Although some rules were added by special laws, but overall regulatory framework did not undergo any revi- sions or substantial changes. As with criminal pro- ceedings, there were calls for greater speed in the resolution of civil and commercial disputes. Therefore, with the main aim of shortening the state’s response times in the administration of civil justice, and at the same time updating some of the provisions of the previous regulations, a bill began to take shape
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