Countries › Panama › Guide › 14. Disputes › Commercial litigation in Panama under the Código Procesal Civil: courts by amount, ordinary and summary processes, hearings, appeals, cassation and costs

Commercial litigation in Panama under the Código Procesal Civil: courts by amount, ordinary and summary processes, hearings, appeals, cassation and costs

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

Since 11 October 2025 new civil and commercial suits follow the oral Código Procesal Civil: municipal judges hear claims from B/.1,000 to B/.10,000 and circuit judges hear larger ones. The defendant has 10 days to answer in the ordinary process and 5 days in the summary process, and the case moves through a preliminary hearing and a final hearing. Appeals are announced within 5 days, cassation to the Supreme Court needs a claim of B/.50,000 or more, and the losing party normally pays costs.

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

Lower value ordinary claims start above	1000 PABCódigo Procesal Civil art. 615, as of 2026-10-29 · in force
Higher value claims (circuit judges) above	10000 PABCódigo Procesal Civil arts. 50 and 615, as of 2026-10-29 · in force
Days to answer an ordinary claim	10 daysCódigo Procesal Civil art. 617, as of 2026-10-29 · in force
Days to announce an appeal against a decision given outside a hearing	5 daysCódigo Procesal Civil arts. 575 and 576, as of 2026-10-29 · in force
Minimum claim value for cassation	50000 PABCódigo Procesal Civil art. 584, as of 2026-10-29 · in force
Days to file cassation	5 daysCódigo Procesal Civil art. 586, as of 2026-10-29 · in force
Loser pays costs	Yes, unless evident good faith textCódigo Procesal Civil art. 375, as of 2026-10-29 · in force
Security for attaching a bank account	20 %Código Procesal Civil art. 342, as of 2026-10-29 · in force
Days to file the claim after a pre suit attachment	10 daysCódigo Procesal Civil art. 337, 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. Ordinary processes are of lower value (more than B/.1,000 up to B/.10,000, heard by municipal judges) or higher value (more than B/.10,000, heard by circuit judges). Value is the liquid amount plus accrued interest claimed when the suit is filed; later interest and damages claimed as accessories are not counted.
Cost to do it: Thresholds B/.1,000 and B/.10,000 (US$1,000 and US$10,000).
Example: A claim for B/.9,500 plus B/.800 of accrued interest is B/.10,300 and goes to a circuit judge. / US$9,500 plus US$800 interest equals US$10,300, a circuit court claim.Ley 402 de 2023 (Código Procesal Civil), arts. 14, 615 and 616, 2023-10-11 official text · verified 2026-10-29

2. After the claim is admitted the defendant has 10 days to answer; failure to answer is taken as evidence against it. Evidence may be offered up to 10 days before the preliminary hearing and counter evidence up to 5 days before.Ley 402 de 2023 (Código Procesal Civil), arts. 617 and 618, 2023-10-11 official text · verified 2026-10-29

3. At the preliminary hearing the judge first urges conciliation or mediation, then fixes the disputed facts and the evidence; the final hearing takes the evidence and the judge rules. Parties may suspend the case for up to three months, extendable once, to conciliate or mediate, and an approved settlement has the force of a final judgment.Ley 402 de 2023 (Código Procesal Civil), arts. 255, 257, 552, 553, 556 and 557, 2023-10-11 official text · verified 2026-10-29

4. The summary process applies to, among others, challenges to shareholder or board resolutions, dissolution and liquidation of companies, and disputes over leases, land transport, deposit, agency (mandato) and professional fees. The answer period is 5 days and the preliminary hearing is set 10 to 20 days after it; only orders that reject the claim, prevent its continuation or end the case are appealable.Ley 402 de 2023 (Código Procesal Civil), arts. 621, 622 and 623, 2023-10-11 official text · verified 2026-10-29

5. An appeal is announced orally at the hearing or in writing within 5 days of notice and must be argued within 5 days of the announcement; the other side has 5 days to oppose. Judgments ending declaratory and executive cases are appealed with suspensive effect.Ley 402 de 2023 (Código Procesal Civil), arts. 574, 575 and 576, 2023-10-11 official text · verified 2026-10-29

6. Cassation before the Civil Chamber of the Supreme Court lies against second instance decisions of the superior courts in private matters only if the claim is worth B/.50,000 or more (no threshold in cases on national, municipal or autonomous entity interests); it is filed within 5 days of notice.
Cost to do it: Minimum value B/.50,000 (US$50,000).
Example: A B/.45,000 dispute ends at the superior court; a B/.60,000 dispute may reach cassation. / US$45,000 stops at second instance; US$60,000 can go to the Supreme Court.Ley 402 de 2023 (Código Procesal Civil), arts. 47, 584, 585 and 586, 2023-10-11 official text · verified 2026-10-29

7. Every judgment orders the losing party to pay costs unless the judge finds evident good faith; a party found to have acted in bad faith also pays a fine of B/.100 to B/.500 to the Treasury. Costs are liquidated by the clerk using any tariff approved by the Fourth Chamber, which the judge may vary by up to 30 percent.
Cost to do it: Bad faith fine B/.100 to B/.500 (US$100 to US$500) on top of costs.Ley 402 de 2023 (Código Procesal Civil), arts. 375 and 380, 2023-10-11 official text · verified 2026-10-29

8. Attachment (secuestro) may be requested before, with or after the claim and must be decided within 3 days; the court fixes security of 20 percent of the amount for bank accounts, 25 percent for salary or movables, 30 percent for real estate, 35 percent for both and 40 percent for administration. The measure is lifted if the claim is not filed within 10 days of its execution.
Cost to do it: Security of 20 to 40 percent of the amount attached.
Example: Freezing B/.200,000 in a bank account needs security of about B/.40,000. / Freezing US$200,000 needs about US$40,000 of security.Ley 402 de 2023 (Código Procesal Civil), arts. 337, 339, 340 and 342, 2023-10-11 official text · verified 2026-10-29

Step	Ordinary process	Summary process	Source
Answer	10 days	5 days	arts. 617 and 622
Evidence	Up to 10 days before the preliminary hearing	With the pleadings, until the day before the preliminary hearing	arts. 618 and 622
Preliminary hearing	Conciliation, disputed facts, evidence	Set 10 to 20 days after the answer period	arts. 255 and 622
Appeal	Against judgments and listed orders	Only against orders rejecting or ending the case	arts. 573 and 623

Ordinary and summary processes under the Código Procesal Civil.

Worked example

A Panamanian company is owed B/.120,000 (US$120,000) under a services contract with no arbitration clause.
It files an ordinary claim before a circuit judge and asks for attachment of the debtor's bank account, posting security of B/.24,000 (20 percent).
If it wins and the debtor appeals, the superior court decides; cassation is available because the claim exceeds B/.50,000.

Step by step

Value the claim (principal plus accrued interest at filing) to pick the municipal or circuit court.
Assemble evidence with the claim; late evidence is limited to 10 days before the preliminary hearing.
Apply for attachment early and budget the security percentage.
Attend the preliminary hearing ready to discuss settlement; the judge must propose conciliation or mediation.
Diary 5 days for announcing and 5 days for arguing any appeal.

Common traps

A pre suit attachment lapses if the claim is not filed within 10 days of its execution.
Losing an appeal or cassation carries costs automatically (art. 375 numeral 2).
In summary cases you cannot appeal most interim orders, so object at the hearing.
Suits filed before 11 October 2025 still run under the Código Judicial and its appeal rules.

Sources

← Disputes in Panama: courts under the new Código Procesal Civil, arbitration under Ley 131 de 2013, enforcing awards and judgments, and ICSIDDebt collection in Panama: executive titles, payment orders, attachment, 8 day defences and judicial auction under the Código Procesal Civil →

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