PANAMA Law and Practice Contributed by: María Teresa Diaz, Nadya Price and Joaquín De Obarrio, Patton Moreno & Asvat
6. Enforcement of Law and Jurisdiction and Arbitration Clauses 6.1 Enforcement of Law and Jurisdiction Clauses Stated in Bills of Lading Law 8 of 1982, as amended, recognises the validity 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 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. 6.2 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 pursu - ant 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 Mari - time Courts can stay the main proceeding and keep the arrest or seizure in place, subject to the results of the arbitral proceeding.
6.3 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 Rec - ognition and Enforcement of Foreign Arbitral Awards; • the 1975 Inter-American Convention on Inter - national Commercial Arbitration; or • any other treaty ratified by Panama on the recognition and enforcement of arbitral awards. The petition for recognition is filed before the Fourth Chamber of the Supreme Court of Jus - tice. Law 131 of 2013 regulates national and inter - national arbitration in Panama and incorporates modern international arbitration practices and principles. 6.4 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. Notwithstand - ing, the Maritime Courts may abstain from hear - ing a case in which the parties have previously and expressly negotiated to submit their contro - versies 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. 6.5 Domestic Arbitration Institutes The Centre for Maritime Conciliation, Mediation and Arbitration of Panama (CECOMAP), founded in 2007 by the Panamanian Maritime Chamber
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