PANAMA Law and Practice Contributed by: Nadya Price and Joaquín De Obarrio, Patton Moreno & Asvat
• security to act without a power of attorney, which is returned in full once the power of attorney and a certificate of the legal existence of the plaintiff is filed with the court; • USD1,000 security for damages that the arrest may cause; and • USD2,500 initial maintenance fees – if the arrest is not lifted promptly, the marshal may request plain - tiffs to post additional fees for maintenance, and the failure to post such fees may result in lifting of the arrest. The plaintiff must file the evidence in respect of the applicable laws (copy of the relevant laws, legal opin - ions, lawyer affidavits and/or others). Bringing Within the Jurisdiction of Panama’s Maritime Courts Cognisance of Causes Emerging Within or Outside the National Territory, as a Result of Facts, or Acts Related to Navigation, When the Defendant Is Outside Its Jurisdiction In this case, the plaintiff may request the arrest of the vessel (regardless of its nationality or of the ship- owner’s nationality) while navigating in Panamanian waters or Panamanian ports, even if there are no other contacts with the Panamanian jurisdiction. It would be necessary to deposit the following before the Maritime Courts: • security to act without a power of attorney, which is returned in full once the power of attorney and a certificate of the legal existence of the plaintiff is filed with the court; • USD1,000 security for damages that the arrest may cause; and • USD2,500 initial maintenance fees. Assuring That the Proceedings Will Not Have an Illusory Effect, and Keeping the Defendant From Transferring, Dissipating or Encumbering Properties Susceptible to Those Measures Here the plaintiff may request the arrest of the ves - sel involved in the transaction that gave rise to their claim, or of any other vessel or property belonging to the defendant. In such a case, the Maritime Courts would request security in an amount between 20% and 30% of the
amount of the claim. The amounts would be affixed discretionarily by the judge. Security must be posted in cash, certified cheques issued by banks licensed to operate in Panama, or Panamanian public debt titles. After filing the complaint and an arrest motion, as a general rule of proceedings, the following documents must be filed before the Maritime Court: • a power of attorney; • a certificate of the legal existence of the plaintiff; • a certificate of the legal existence of the defendant – this document will be necessary only if the claim is filed against the owner of the vessel (in person - am complaint); and • evidence of the claim. All foreign documents must be notarised as authen - tic and legalised according to the 1961 Hague Con - vention on the apostille (the “Apostille Convention”) or legalised before a Panamanian consulate at the place of issuance. Documents in languages other than Spanish must be translated by an official translator. 5.6 Arresting Bunkers and Freight Law 8 of 1982, as amended, allows for arrests to be executed against bunkers and freight, under the gen - eral rules for arrest. 5.7 Sister-Ship Arrest Sister-ships or vessels owned by affiliates may be sued and arrested in rem in lieu of those on which the claim originated, when the applicable substantive law so permits. The plaintiff must file prima facie evidence demonstrating that, under the applicable substantive law, the arrest of a sister-ship is viable, and that the vessel subject to the arrest is a sister-ship under the applicable substantive law. 5.8 Other Ways of Obtaining Attachment Orders Law 8 of 1982, as amended, allows a party with rea - son to believe that, during the time prior to a judicial recognition of their right, they will suffer imminent or irreparable danger to request from the Maritime Court the most appropriate conservatory or protective measure which will provisionally guarantee, depend - ing on the circumstances, the effect of a judgment on
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