PANAMA Law and Practice Contributed by: María Teresa Diaz, Nadya Price and Joaquín De Obarrio, Patton Moreno & Asvat
with the legal formalities required for such trans - fer. 3.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages The Maritime Commerce Law imposes liability for damages on the vessel in rem, regardless of the party in control. 3.4 Misdeclaration of Cargo The Maritime Commerce Law states that a car - rier can establish a claim against the shipper for misdeclaration of cargo if the goods are not properly packed or accurately described. The carrier will be indemnified on any loss result - ing from poor packaging or inaccuracies in the information. 3.5 Time Bar for Filing Claims for Damaged or Lost Cargo As established by Panama’s Code of Com - merce, actions derived from land or sea trans - port contracts, or charterparty contracts, have a one-year time bar. Actions derived from liability in tort also have a one-year time bar, established by Panama’s Civil Code. The one-year term will run from the date of the damage or the date of delivery of the cargo. This time limit cannot be extended or sustained. 4. Maritime Liens and Ship Arrests 4.1 Ship Arrests Panama has not adopted any international con - ventions regarding the arrest of vessels. This matter is covered by Law 8 of 1982, as amended. 4.2 Maritime Liens Maritime liens are set forth in the Maritime Com - merce Law, and are listed as liens against the vessel, the freight and the cargo.
The following liens will have privilege over the vessel and will concur on its price in the follow - ing order: • any judicial costs caused in the common interest of the maritime creditors; • any expenses, compensation and salaries for assistance and salvage; • any salaries, remuneration and compensation due to the captain and crew; • the naval mortgage; • any credits in favour of the Panamanian state for fees and taxes; • any salaries and stipends due to stevedores and dock workers hired directly by the owner, operator or captain of the vessel to load or unload it; • any indemnities due for damages caused by fault or negligence; • any amounts owed by way of contribution in general averages; • any amounts owed by virtue of obligations contracted for the necessities and provision - ing of the vessel; • any amounts taken on the bottomry of the vessel and rigging for supplies, arms and apparel, and insurance premiums; • any salaries of pilots and watchmen, and conservation and custody expenses of the vessel, its rigs and supplies; • any indemnities owed to carriers and pas - sengers for failure to deliver the goods carried or for any damages thereto imputable to the captain or the crew; and • the price of the last acquisition of the vessel and any interest due. The following liens will have privilege over the freight and will concur on its price in the follow - ing order:
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