Guide to understanding the legal process of litigation in Panama

Abogados de Litigios en Panamá : Panamanian litigation lawyers

A legal dispute can threaten the foundation of your company. As a leader, your next decision will guide you through this process to either succeed or derail your growth plans. Despite your broad experience in the business world, facing a lawsuit is discouraging. That is where the expertise and guidance of Panamanian litigation lawyers make the difference.

Civil litigation in Panama is a complex dance of legal procedures and strategic decisions, just as in any jurisdiction. Understanding this process is vital for any business owner facing litigation with an individual or another company to defend his rights and ensure fair commercial practices.

Litigations are step-by-step processes

Each process has its characteristics, depending on the subject to be dealt with. However, this article seeks to make known the core part of every process, which may vary according to the characteristics present in each matter and the particularities of each adjective norm. Therefore, the considerations outlined in this article refer mainly to the characteristics of ordinary civil procedures currently in force in our country.

All litigations begin with filing a legal claim, a document that sets out the plaintiff’s claim, the relief they seek, and who the defendant is. This marks the official start of the lawsuit, setting the legal gears in motion.

The claim is then evaluated to verify its compliance with all law requirements and determine if the legal authorities can admit it. If it is not accepted, the judge can order the corrections of the same within the deadlines established in the Judicial Code. If it is not corrected, it will be considered as not presented.

If admitted, we enter into the answer of the lawsuit, where the defendant responds to the claim, accepting the facts or rejecting the allegations. It defines the litigation battlefield, where previous requests and evidence are used as preliminary skirmishes before the main battle. This phase is an opportunity to discover the facts that will dictate the course of litigation, so it is a crucial phase that requires skillful legal navigation.   

Then, we continue to the phase of presenting evidence, rebuttal evidence, and objections, where both parties provide information through testimonies, request the exhibition of documents, expert evidence, and questioning requests. In this phase, the strength of each party’s argument is evaluated against the evidence and facts, which will subsequently lead the judge to assess which evidence is admitted or rejected.

Through the order of proof, a deadline will be set for practicing and evacuating the evidence admitted. After that, a period of allegations begins to run. Finally, the process goes into a resolution phase, during which the judge will adopt a sentence and the parties are obliged to comply with this ruling.

Entrepreneurs facing litigation must go through these phases with precision and strategic foresight. They must demand transparency in strategy, costs and posible results from their legal advisers, to ensure a relationship based on trust and clear communication.

With more than two decades of experience, we are a team of experienced litigators capable of foreseeing challenges beyond the procedural facts. We understand the economic and emotional burden of litigation. So, we will be clear about the financial implications of prolonged litigation and can tell you when alternative dispute resolution methods offer a more favorable outcome.

For entrepreneurs, partnering with experienced lawyers like those at Mónica Castillo Arjona – Law-Firm, who understand the depths of litigation, beyond the mere procedural aspects, can make all the difference.


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