PANAMA Law and Practice Contributed by: Nadya Price and Joaquín De Obarrio, Patton Moreno & Asvat
Panama’s role is generally limited to supporting meas - ures, such as vessel arrest or flag and registry actions (including deregistration upon termination), rather than adjudicating the contractual dispute itself. In essence, mortgage enforcement is a statutory in rem process under Panamanian law, whereas lease enforcement is contractual and typically resolved outside Panama, with Panama acting mainly as an arrest and enforcement jurisdiction for both types of structures. 3. Marine Casualties and Owners’ Liability 3.1 International Conventions: Pollution and Wreck Removal The following international conventions on pollution and wreck removal have been ratified by Panama and, therefore, will impact on the liability of owners and interested parties in the event of pollution and/or wreck removal: • the International Convention for the Prevention of Pollution from Ships, 1973 (MARPOL) and annex - es; • the International Convention on Civil Liability for Oil Pollution Damage (CLC); • the International Convention on Civil Liability for Bunker Oil Pollution Damage (BUNKER); • the International Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter (the “London Convention”); and • the Nairobi International Convention on the Remov - al of Wrecks. 3.2 International Conventions: Collision and Salvage The following international conventions on collision and salvage have been ratified by Panama and, there - fore, will impact on the liability of owners and inter - ested parties in the event of collision and/or salvage: • the Convention on the International Regulations for Preventing Collisions at Sea, 1972 (COLREGs); and • the Convention on Facilitation of International Mari - time Traffic (London, 1965).
In addition, Law 55 of 2008 (the “Maritime Commerce Law”) Title III, Chapters I and II regulate collisions and salvage. 3.3 Convention on Limitation of Liability for Maritime Claims Panama is not a signatory to the 1976 Convention on Limitation of Liability for Maritime Claims. Neverthe - less, most of the substantive rules established in this international agreement have been incorporated into Panamanian domestic legislation, specifically in Law 8 of 1982, as amended, on maritime procedure. Therefore, despite not being a party to the 1976 Con - vention on Limitation of Liability for Maritime Claims, in practice Panama follows its general principles and rules, albeit with certain modifications and deletions. Panama has not passed into law the limits as modified by the 1996 Protocol to amend the 1976 Convention on Limitation of Liability for Maritime Claims. 3.4 Vienna Convention on the Law of Treaties Panama is a party to the Vienna Convention on the Law of Treaties 1969, which was ratified by Law 17 of 1979 and has been in force since 27 August 1980. 3.5 Procedure and Requirements for Establishing a Limitation Fund Constitution of the Limitation Fund The constitution of the limitation fund for the payment of claims is subject to the following rules. • Any person alleged to be liable may constitute a fund with the court or other competent authority in any state in which legal proceedings are instituted in respect of claims subject to limitation. • The fund shall be constituted in the sum of those amounts set out in the article relating to general limits, and special articles relating to passenger claims, together with interest thereon from the date of occurrence giving rise to the liability under the date of the contribution of the fund. • The fund thus constituted shall be available only for the payment of claims in respect of which limitation of liability can be invoked. • The fund may be constituted either by deposit - ing the sum or by producing a guarantee which is
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