According to Panama Arbitration Law, the rules established on itself will only apply to Arbitrations handled at Panama Arbitration Courts. Nonetheless it has an exception which comprehends a few articles that will also apply to cases that are or will be handled at a foreign Arbitration Court.
Among this exception, we will be able to find an article that grants the power, to the Panamanian Judicial Courts, to know and to be competent to handle precautionary measures that would take effect in Panama, against a Panamanian persons or company, or assets located in its territory.
This article, establishes that the Courts, will make no difference, to the Precautionary Measures, applied for Arbitration Process outside their jurisdiction (Foreign Arbitration Courts), than the process applicable for the Precautionary Measures requested to secure the results of Judicial Process disputed at their jurisdiction (Panamanian Judicial Courts).
Although it establishes a small condition that obligates, the party that executes the Precautionary Measure, to properly notify the Foreign Arbitration Court, that is handling the case about the resolution issued by the Panamanian Judicial Court that ordered to seize assets or inform any other Precautionary Measure taken by this resolution.
The notification that the previous paragraph explains, must be done in a period no longer than 10 days, after the execution of the Precautionary Measure in Panama, ordered at the so mentioned resolution.
Having said that, we must go back to the ordinary rules, for request and execution of Precautionary Measures in Panama performed at common Panamanian Judicial Process.
These rules are comprehended at our Judicial Code, Second Title, Chapter I, titled Precautionary Measures. This article, basically establishes 11 conditions that will rule over every Precautionary Measure, that we will briefly explain:
Once we have understood the basics parameters of the Precautionary Measures in Panama, we will now be able to understand the process of requesting it and its execution.
To request a Precautionary Measure, we will require to submit before the Court, a Power of Attorney that allows us to do so (This document must be properly legalized), also we must submit a motion to execute precautionary measures, that will contain the details already mentioned in point No. 3, as well as the arguments that support at least an apparent applicable right in favor of the plaintiff against the defendant, Law articles that support those rights, as well as evidence that persuade the Judge that apparently this claim has bases to be discussed.
This package will be filed before an entity of the Panamanian Judicial System, called Unique Entrance Registry that will randomly select a competent Judge, to empower him to handle the whole process.
This Judge will receive the Precautionary Measure motion, and will first of all issue a resolution admitting the Power of Attorney granted admit the requested measure and then establish an amount for the plaintiff to pay as the caution, previously mentioned on point No. 6.
Once the plaintiff complies with the requested caution, the Court will execute the precautionary measures, generally by issuing notes to the authorities that the Court order to execute the measures, or by issuing resolution to set judicial diligence to practice at the defendants offices or properties.
Once this resolutions or notes are issued the plaintiff must deliver the so mentioned notes, or attend the so mentioned diligence, in order to properly execute the Precautionary Measure requested.
Lic. Juan Raúl Sevillano
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