PANAMA Trends and Developments Contributed by: Jorge Molina Mendoza and Alberto de Urriola Rubio, FABREGA MOLINO
Judges are given broader tools to guide the parties toward an alternative solution to litigation. Use of technological means The reform also introduces the use of technologi- cal means for notifications to the parties and for appearances, as well as for filing petitions or briefs addressed to the court. The use of technology is also contemplated for holding hearings and examining the electronic case file. New developments Setting deadlines for the resolution of disputes The new regulation sets a one-year time limit for the duration of the judicial process in the first instance, counted from the notification of the order admitting the claim, unless the parties decide to suspend the process by mutual agreement, or the dispute is clas- sified as a complex case (multiple parties or multiple claims). For second instance proceedings, a maximum period of six months is set, depending on the case, counted from the date the case is assigned to the higher court. The regulation of the legal consequences for failure to decide the matter within the established time limits is noteworthy. Now, a judge who does not decide within the legal time limit may lose jurisdiction over the case, which is then passed on to the next judge in line. Holding of preliminary and final hearings At the preliminary hearing, as a general rule, the sub- ject matter of the debate, the facts disputed by the parties, the evidence admitted, and the date for the final hearing are set, with the necessary arrangements made for the taking of evidence. At the final hearing, the evidence is examined (includ- ing the examination of experts and witnesses, pres- entation of documents), the parties’ arguments are heard, and a judgment is handed down. The judge may order a five-day recess to prepare and deliver their oral judgment. The written judgment must then be published within 20 days of the close of the final hearing.
The parties may mutually agree to request that, after the preliminary hearing, the final hearing be dispensed with, in which case the evidence is presented on dates set by the judge. After the evidence has been presented, the parties submit their final written argu- ments, and the judge must decide on the merits of the dispute 20 days after the written arguments have been submitted. Incorporation of the concept of discovery In Law 402, discovery is referred to as “disclosure of evidence.” It allows the parties, after the judicial process has begun, to request that the other party disclose information and provide documents, data, or items in their possession, custody, or control. The disclosure of evidence is always carried out between the parties to the proceedings and without the need for the judge’s intervention, except in special circumstances (professional secrecy, sensitive infor- mation). Greater rigour in the practice of precautionary measures Unlike the previous regulation, under the new Law 402, for any precautionary measure to be granted, whether it be seizure of assets, provisional suspen- sion of activities, preventive annotation of the claim on assets subject to registration, or protective measures in general, the “threat or violation of the right” must be demonstrated. It is also an essential prerequisite to demonstrate the appearance of good law, the pro- portionality of the measure requested, the risk posed by a delay in obtaining a final judicial decision, and the provision of a bond to cover any potential damage that the precautionary measure may cause. The Code clearly states that the measures ordered may be modified at any time if it is determined that they could cause unnecessary inconvenience or harm to the defendant. Preference for alternative dispute resolution As a general principle, the court is to encourage the parties to reach an agreement through exceptional means provided for in the Law from the outset of the proceedings. Specifically, these regulated means are conciliation and mediation.
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