PANAMA Law and Practice Contributed by: Nadya Price and Joaquín De Obarrio, Patton Moreno & Asvat
Available limitations on liabilities in respect of a pas - senger’s claim include: • claims related to death and bodily injury which occurred on board or were directly connected to the exploitation of a vessel, or to salvage or assis - tance operations, and damages resulting from any of these causes; • claims related to damages resulting from a delay in the transportation of passengers or their luggage by sea; and • claims for damages different from those arising from contractual rights, caused in direct connec - tion with the exploitation of the vessel, or with salvage or assistance operations. Panama’s Maritime Commerce Law Article 244, on maritime liens, includes “compensation for damages caused by fault or negligence”, which has been inter - preted to include personal injury in a general sense. 7. Enforcement of Law and Jurisdiction and Arbitration Clauses 7.1 Enforcement of Law and Jurisdiction Clauses Stated in Bills of Lading Law 8 of 1982, as amended, recognises the valid - ity of the substantive law included in bills of lading. The Maritime Courts may abstain from hearing a case in which the parties have previously and expressly negotiated to submit their controversies to a court in a foreign country and have agreed to this in writing. However, pro forma or adhesion contracts (such as bills of lading) are not considered to be previously and expressly negotiated. 7.2 Enforcement of Law and Arbitration Clauses Incorporated Into a Bill of Lading Law 8 of 1982, as amended, recognises the validity of an arbitration agreement, provided it is in writing and has been negotiated between all parties. Arbitration can be conducted pursuant to the rules chosen by a party; otherwise, Panamanian law on arbitration will govern the arbitration proceeding. The Maritime Courts must, at the request of one of the parties, abstain from continuing to hear a claim
already submitted to arbitration, as well as in cases where an arbitration clause exists. In such cases, the Maritime Courts can order the taking of appropriate measures to safeguard a party’s rights, such as the consigning of a surety bond before the competent court or a waiver of time-bar defence, if the statute of limitations has been interrupted. If an arrest or seizure has taken place, or if it is not possible to consign a bond before the competent court, the Maritime Courts can stay the main proceeding and keep the arrest or seizure in place, subject to the results of the arbitral proceeding. 7.3 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards Foreign arbitral awards are recognised and enforced in Panama in accordance with: • the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards; • the 1975 Inter-American Convention on Interna - tional Commercial Arbitration; or • any other treaty ratified by Panama on the recogni - tion and enforcement of arbitral awards. The petition for recognition is filed before the Fourth Chamber of the Supreme Court of Justice. Law 131 of 2013 regulates national and international arbitration in Panama and incorporates modern inter - national arbitration practices and principles. 7.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction In practice, the Maritime Courts are likely to grant the claim if the plaintiff complies with the appropriate prima facie evidence. Notwithstanding, the Maritime Courts may abstain from hearing a case in which the parties have previously and expressly negotiated to submit their controversies to a court in a foreign coun - try and have agreed to this in writing. However, pro forma or adhesion contracts (such as bills of lading) are not considered to be previously and expressly negotiated. 7.5 Domestic Arbitration Institutes The Centre for Maritime Conciliation, Mediation and Arbitration of Panama (CECOMAP), founded in 2007
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