Comparing Legal Systems:Panama and the United States

David M. Mizrachi

This document is not meant to be relied upon in place of seeking independent legal advice. It is only an informal survey of certain laws, which may contain inaccuracies. ©2010, Mizrachi, Davarro & Urriola

The PanamanianLegal System

Civil Law JurisdictionSingle Sovereign

Jurisprudence not binding

“Probable Doctrine”

One Constitution – Supremacy Rule

Codes (Civil, Commercial, Tax, Family, Judicial, Mining, Administrative)

Special Laws (Banking, Securities, Oil & Gas, Negotiable Instruments, Corporations, Foundations, Social Security, Public Services, Gaming, Antitrust and Consumer Protection)

The United StatesLegal System

Common Law Jurisdiction

Multiple Sovereigns

Jurisprudence binding

“Stare Decisis”

One Federal Constitution – Supremacy RuleSeveral State Constitutions

Federalism / States RightsCommerce Clause

Federal Laws - US Code – Code of Federal Regulations

State Laws – State Statutes - State Codes

Federal Courts

State Courts

The United StatesLegal System

Federal Court JurisdictionFederal Law Issues

Diversity of Citizenship

U.S. Supreme Court ReviewConflict between Circuit (Appellate Courts)

US Constitutional Matters

Writ of Certiorari

Lifetime appointment of Federal Judges

Shared General Features

Ease of incorporation

Modern body of commercial laws

Strict regulation of banking, insurance and securities

Few restrictions on foreign investment in the services and industrial sectors

Few restrictions on property ownership by foreigners

General Features (…/)

Minimal government interference in non regulated industries

Freedom to contract

Individual freedoms

Trends toward arbitration law

Intellectual Property

Copyrights

Patents

Trademarks

Trade Secrets

License

Franchises

Issues Facing Lawyers Supreme Court Regulation in PanamaState Supreme Court Regulation in the United StatesNational Bar Admission in Panama

No mandatory association membership

State Bar Admissions in the United States Mandatory association membership

Hourly Fees - Preferred in the United StatesValue Based Fees – Preferred in Contingency FeesPanama – Trend Changing in the United States

Dispute Resolution

Court Systems Arbitration - Mediation

Constitutionally Sound Quick Flexible Enforceable Professional Granted full faith and credit International or Domestic

Recommendations for doing business across borders

Find a reliable trading partner Conduct due diligence Research the Market PUT IT IN WRITING!Include ArbitrationTHINK REGION! Request guarantees (personal real and documentary)

Calle 58 y Avenida Samuel LewisTorre ADR Oficina 6-CPanama, Republic of Panama Tel. 011-507-263-0604Fax 011-507-263-2581www.mdulegal.com

The preceding presentation is not meant to be relied upon in place of seeking independent legal advice. It is only an informal survey of certain legal considerations, which may contain inaccuracies. The Author and his firm disclaim any responsibility for its accuracy, fairness, reliability, or contents. No representation is made as to the legal and/or tax consequences of any of the concepts herein described. The reader is specifically warned not to rely on its contents and to seek professional advice from a licensed attorney in Panama. The hiring of an attorney is an important decision which should not be based on advertising and/or publications alone. Should you be interested in learning more regarding the Author’s qualifications, you will be provided with additional information free of charge upon request. (© 2010, Mizrachi, Davarro & Urriola)