Countries › Panama › Guide › 14. Disputes › Claims against the Panamanian State: administrative appeals, the two month silence rule, the contentious administrative jurisdiction and civil cases against the State

Claims against the Panamanian State: administrative appeals, the two month silence rule, the contentious administrative jurisdiction and civil cases against the State

Last verified: 2026-10-29 · Status: Stable

Challenging an agency decision starts with reconsideration or appeal within 5 business days; if the authority is silent for two months the request or appeal is deemed denied and the administrative route is exhausted. The Supreme Court hears contentious administrative claims: a full jurisdiction claim to restore a private right must be filed within two months, while a pure annulment claim has no time limit. In civil cases the State cannot be ordered to pay costs or have its assets attached, and arbitration with the State depends on the contract clause.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the balboa's value is on a par with the US dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

Court for claims against public authorities	Supreme Court, contentious administrative jurisdiction textConstitution art. 206 numeral 2, as of 2026-10-29 · in force
Business days to seek reconsideration	5 business daysLey 38 de 2000 art. 168, as of 2026-10-29 · in force
Business days to file an administrative appeal	5 business daysLey 38 de 2000 art. 171, as of 2026-10-29 · in force
Administrative silence	Deemed denial after 2 months textLey 38 de 2000 arts. 156 and 200, as of 2026-10-29 · in force
Deadline for a claim restoring a subjective right	2 months textLey 135 de 1943 as amended by Ley 33 de 1946 art. 27, as of 2026-10-29 · in force
State can be ordered to pay costs in civil cases	No textCódigo Procesal Civil art. 795, as of 2026-10-29 · in force
Exchange rate used for USD conversions	1 PAB per USDBalboa at par with the US dollar (Superintendencia de Bancos), as of 2026-10-29 · in force

The rule

1. The Supreme Court exercises contentious administrative jurisdiction over acts, omissions, defective public services, resolutions, orders or provisions of national, provincial, municipal and autonomous public authorities.Constitución Política de 1972, texto único published in Gaceta Oficial 25176 of 2004, art. 206 numeral 2, 2004-11-15 official text · verified 2026-10-29

2. The administrative appeals are reconsideration before the deciding official and appeal before the immediate superior; each must be filed within 5 business days of notice.Ley 38 de 31 de julio de 2000, arts. 166, 168 and 171, 2000-07-31 official text · verified 2026-10-29

3. If an authority does not decide a petition within one month the applicant may report the delay, and after two months may treat it as rejected and go to the next administrative or judicial step; an administrative appeal not decided within two months is likewise deemed rejected.Ley 38 de 31 de julio de 2000, arts. 156 and 200, 2000-07-31 official text · verified 2026-10-29

4. To go to the contentious administrative court the administrative route must be exhausted. A claim to annul an administrative act may be filed at any time, but a claim for redress of an injured subjective right prescribes two months after publication, notice or execution of the act, or after the act or operation causing the claim.Ley 135 de 1943 as amended by Ley 33 de 1946, Ley 33 de 1946 arts. 25, 26 and 27, 1946-09-11 official text · verified 2026-10-29

5. Civil cases in which the State, municipalities or State entities are parties are heard at first instance by circuit judges. In civil cases the State and municipalities cannot be ordered to pay costs, no interim measures other than evidentiary ones can be taken against them, and judgments against them are reviewed by the superior court even without appeal.Ley 402 de 2023 (Código Procesal Civil), arts. 50 and 795, 2023-10-11 official text · verified 2026-10-29

6. Arbitration agreed in contracts with the State and the Panama Canal Authority is valid; without a clause, submitting a dispute to arbitration requires Cabinet Council approval and the Attorney General's favourable opinion.Ley 131 de 31 de diciembre de 2013, art. 14, 2013-12-31 official text · verified 2026-10-29

Step	Deadline	Source
Reconsideration	5 business days from notice	Ley 38 de 2000 art. 168
Appeal to the superior	5 business days from notice	Ley 38 de 2000 art. 171
Deemed denial	2 months without decision	Ley 38 de 2000 arts. 156 and 200
Full jurisdiction claim	2 months from publication, notice or execution	Ley 33 de 1946 art. 27
Annulment claim	No time limit	Ley 33 de 1946 art. 26

Challenging a decision of a Panamanian authority.

Worked example

A ministry cancels a B/.1,200,000 (US$1,200,000) operating licence by a resolution notified on 2 March.
The company files reconsideration within 5 business days; with no answer by early May, it treats the appeal as rejected.
It then files a full jurisdiction claim seeking reinstatement and damages within two months.

Step by step

Diary 5 business days from notice for reconsideration or appeal.
Track two months from filing to trigger deemed denial.
File the full jurisdiction claim within two months, attaching proof of exhaustion.
For contracts with the State, check whether there is an arbitration clause before choosing a forum.

Common traps

The two month limit for restoring rights is short and strict; an annulment only claim does not bring damages.
You cannot attach State assets in civil cases.
Special procedures in sector laws displace the general administrative procedure.

Sources

← Insolvency and creditor claims in Panama under Ley 12 de 2016: reorganisation, the financial protection stay, liquidation, clawback and cross border casesLimitation periods and key filing deadlines in Panama: negotiable instruments, company and bank contracts, State claims, awards and how filing stops the clock →

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