PANAMA           

Law 32 of August 1, 2006 

Establishing rules for the resolution of international conflicts

in matters of Private Law and determining other issues 

THE NATIONAL ASSEMBLY DECREES 

Article 1. A Chapter IV, named Special Procedure for the Resolution of International Disputes in Matters of Private Law, containing Articles 1421-A through 1421-M, shall be added to Title XII, Book II of the Judicial Code, to wit: 

                                                 Chapter IV

Special Procedure for the Resolution of International Disputes in Matters of Private Law

                                                Section 1

General Provisions 

            1421-A.   Personal actions are time-barred ten years after the injury becomes known, or when the injury is significantly aggravated, or when the responsible party’s identity becomes known. In case of conflict the reference taken shall be the most favorable one to the viability of the action. When it is shown that the debtor acted with reckless disregard or with bad faith the limitations term shall be fifteen years.  

The statute is tolled when the debtor has obstructed the action through illegal means or with the fraudulent concealment of his acts. The statute is also tolled while the creditor was not able to know the existence of the harm or its origin. 

            1421-B.   Without prejudice to other sanctions imposed by law, any violation of environmental laws generates an action for damages by the State and/or by individuals, for injury caused to the environment and to natural resources. 

The perpetrator is obligated to replace or re-instate the affected things and objects to their natural state if it were possible. 

            1421-C.- The clause establishing foreign arbitration in consumer contracts shall not prevent the consumer from starting arbitration proceedings in the Guatemala and in the Spanish language. 

            1421-D.  Trade Unions are authorized to represent the legal rights of nationals, or of their heirs, who while working abroad suffer damages that justify legal actions. For such purpose the services of reputable law firms in the pertinent country shall be hired. If the person in question does not desire such representation, the same shall cease with no liability for such person. 

            1421-E.  An act committed abroad that causes non-justifiable harm in the country gives rise to an action for damages. 

1421-F.   Any person, who carries on business abroad, who manufactures, products, distributes or otherwise introduces goods or techniques, or industrial procedures in the country, shall be liable for any and all injury, damage or loss, caused as a result of the normal use or consumption of such goods, technique or industrial process. 

                                    Section 2

Special Provisions 

1421-G.-   At the interested party’s request, service abroad, including service of process, may be effected by certified mail, return receipt requested, and/or by private messenger systems, as long as it does not breach any international treaty signed by the Republic of Panama. 

            1421-H.-   Evidence produced in foreign lawsuits shall be admissible and subject to the free appreciation by the national court.  

          The proponent of foreign documents may only present their relevant parts but must include the section that identifies them. 

The content of foreign law can be proved through official documents from the country in question as, for instance, the text of the law itself and of judicial decisions. Legal writing and the opinion of experts, national or foreign, can also be resorted to. The court shall weigh this evidence discretionally and can also take into consideration internet publications, particularly those from official sites.           

         1421-I.  If there were a great number of plaintiffs or defendants, the court may consolidate the actions using its discretion to implement practical measures for the case to move quickly, within the limits of due process. Evidence that is common to the parties may be produced only once to avoid unnecessary repetitions.  

          1421-J.   Lawsuits filed in the country as a consequence of a forum non convenience judgment from a foreign court, do not generate national jurisdiction. Accordingly they must be rejected sua sponte for lack of jurisdiction because of constitutional reasons or due to the rules of preemptive jurisdiction.  

          1421-K.  At the parties’ request in international cases, the national court may apply to damages and to the pecuniary sanctions related to such damages, the relevant standards and amounts of the pertinent foreign law.

       1421-L.   Appeals against the trial court’s decision, interlocutory or not, shall be granted for review purposes only.  

       1421-M. Situations that are not covered in this Chapter, Special Procedure for the Resolutions of International Conflict in Matters of Private Law, shall be subsidiarily ruled by this Book.

      Circuit Courts shall have jurisdiction over the lawsuits subject of this Chapter. 

Article 2. Article 11 of Law 25 of 19995 is amended as follows:

      Article 11. [It deals with the law of trusts and foundations]. 

Article 3. [It deals with the law of trusts and foundations]. 

Article 4. The present Law adds Chapter IV, named Special Procedure for the Resolution of International Disputes in Matters of Private Law, containing Articles 1421-A, 1421-B, 1421-C, 1421-D, 1421-E, 1421-F, 1421-G, 1421-H, 1421-I, 1421-J, 1421-K, 1421-L,   1421-M, to Title XII, Book II of the Judicial Code. 

Article 5. This Law shall become effective from its promulgation. 

LET IT BE KNOWN AND OBEYED 

Approved in its third debate, in the Justo Arosemena Palace, Panama City, on June 21, 2006. 

Elías A. Castillo - President of Congress 

Carlos José Smith S. - Secretary General 

_______________________           

Executive Power. Presidency of the Republic of Panama. August 1, 2006.

Martin TORRIJOS ESPINO

President of the Republic

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