PANAMA Law and Practice Contributed by: Nadya Price and Joaquín De Obarrio, Patton Moreno & Asvat
Limitation of Liability Fund Calculation Law 8 of 1982 establishes that the liability limits for claims (excluding the claims of passengers) will be calculated as discussed here. In respect of claims for loss of life and personal injury, the following applies. • 333,000 units of account for a vessel with a ton - nage not exceeding 500 tons. • For a vessel with a tonnage in excess of the above, the following amounts in addition to that men - tioned above: (a) from 501 to 3,000 tons, 500 units of account per ton; (b) from 3,001 to 30,000 tons, 333 units of ac - count per ton; (c) from 30,001 to 70,000 tons, 250 units of ac - count per ton; and (d) for each ton in excess of 70,000 tons, 167 units of account. In respect of any other claims, the following applies. • 167,000 units of account for a vessel with a ton - nage not exceeding 500 tons. • For a vessel with a tonnage in excess of the above, the following amounts: (a) from 501 to 30,000 tons, 167 units of account per ton; (b) from 30,001 to 70,000 tons, 125 units of ac - count per ton; and (c) for each ton in excess of 70,000 tons, 83 units of account. Furthermore, claims for damage to harbour works, waterways and aids to navigation will have the prior - ity determined by the law. 3.6 Seafarers’ Safety and Owners’ Liability The Republic of Panama ratified the Maritime Labour Convention, 2006, by means of Law No 2 of 6 Janu - ary 2009. The Convention is regulated in Panama by Executive Decree No 86 of 22 February 2013, amend - ed by Executive Decree No 160 of 3 March 2021, and provisions for its application were also established.
acceptable and which the court or other competent authority considers to be adequate. In Panama’s Maritime Courts, the guarantees usually accepted are cash (certificate of judicial deposit), cashier’s or certified cheques drawn against banks licensed to operate in Panama, and irrevocable payment guarantees issued by those banks. Parties Entitled to Petition the Limitation of Liability Law 8 of 1982 regulates parties who are recognised as having substantive legitimacy or standing to limit the liability of the claims described in said law. The rules contained therein are in essence the same rules con - tained in Article I of the 1976 Convention on Limitation of Liability for Maritime Claims. In this respect, Law 8 of 1982 establishes that ship- owners and salvors have standing to limit their liability arising from the claims described under said law. The different categories of persons who have standing and are entitled to limit liability are as follows: • the ship-owner, understood as the registered owner of the vessel, and other parties who may be considered as owners (ie, the charterer, the man - ager and the operator of an ocean-going vessel); • the salvor of the vessel, understood as any per - son rendering services in direct connection with salvage operations; • any persons for whose actions, defaults or neglect the ship-owner or salvor is responsible may avail themselves of limitation of liability; • regarding in rem claims, the law establishes that the liability of a ship-owner shall include liability in an action brought against the vessel itself; and • any insurer of liability for claims subject to limita - tion in accordance with Law 8 of 1982 shall be entitled to benefits to the same extent as the assured themselves. It should be noted that Law 8 of 1982 clearly states that the act of invoking limitation of liability shall not constitute an admission of liability.
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