Procedurability:
The danger of delay must be proven (urgency to avoid irreparable damage or the ineffectiveness of the judgment due to the passage of time or dissipation and/or transfer of assets) and appearance of good right (prima facie showing legal basis and probability of success of the claim).
The application must identify the object (goods to be seized), facts, legal grounds and claim.
Requirements | Description | Relevance to the Business |
Danger in delay | Demonstrate its urgency to avoid irreparable damage or ineffectiveness of the ruling. | Essential to act against the risk that the debtor’s and/or defendant’s assets may be hidden or dissipated before a decision is made regarding the claimed right. |
Appearance of good right | Present evidence that suggests a high probability of success in the claim and a statement of facts that corresponds to the assumptions of legal norms. | It is not arbitrary and is based on legal justification, minimizing the risk of counterclaims. |
Objective | To specify the particular goods or assets to be seized. | To ensure the outcome of the process and expedite its execution. |
Factual and legal assumptions | Detail the facts and legal grounds that justify the request. | It provides the argumentative basis for court approval. |
Specific Claim
| State the claim or right you seek to protect. | Define the scope of the protection requested, ensuring it is proportionate and relevant. |
The request must be resolved within three (3) days. Auxiliary judges are authorized to order precautionary measures and to execute judgments and measures issued by arbitration tribunals.
Guarantees:
Types of guarantees: surety bond issued by an insurance company, bank guarantee, cash deposit, mortgage.
The bond must be posted within ten (10) days of its establishment; after this period, the request for precautionary measures will be considered withdrawn. Bonds provided through mortgages, surety bonds from insurance companies, or bank guarantees are excepted, as in these cases they must be presented to the court before the ten-day period expires, and the applicant must complete the posting within thirty (30) days of its establishment; after this period, the request will be considered withdrawn.
The judge will set the bond based on the value and nature of the asset(s) to be seized, the amount for which the seizure is requested, and the potential damages that may be caused, observing the following table:
Objective: | Percentage of security on seizure amount: |
Bank accounts | 20% |
Salary or movable property | 25% |
Real estate | 30% |
Movable property | 35% |
Administration | 40% |
The judge may, at their discretion, increase the percentage when they deem that the potential damages could be greater. If the seized or to-be-seized asset has a higher value, the bond will be increased or set accordingly, taking into account the value of the claims and the asset subject to the measure. The posted bond will cover any damages that the seizure may cause.
Special rule for enforcement proceedings: the precautionary measure ordered will not require a bond, unless enforcement has been denied, in which case the interested party must post a bond to maintain the measure.
Non-seizable assets:
The following are exempt from seizure: (i) protected portions of wages/salary (with special consideration for food allowances); (ii) the bare necessities for the home and the minimum tools for individual work, which may include a telephone and personal computer or equivalent equipment as part of those essential furnishings; (iii) books, tools and equipment for arts/crafts/professions and agricultural implements within certain value limits; (iv) employment benefits, pensions, and social security benefits; (v) small savings; (vi) personal or honorary items; (vii) property intended for religious worship; (viii) certain public property; (ix) cemeteries and mausoleums; (x) advance payments for construction projects, subject to legal exceptions; (xi) livestock and crops up to the legal limit; (xii) uniforms and work equipment; (xiii) personal and non-transferable rights; and (xiv) current accounts of participants at the National Bank of Panama for the settlement of means of payment.
The court that decreed the measure, or its superior, may revoke it if it contravenes these exclusions.
Practical implications:
The new Code of Civil Procedure represents a step forward in the speed of precautionary measures, incorporating shortened deadlines, auxiliary judges, and standardized bonds.
With a three-day resolution period and digital execution, the priority is to anticipate, keep contractual and accounting evidence ready, have adequate legal counsel, conduct prior research on potential assets to be seized, and have an efficient response protocol. In defense, it is essential to provide bonds for substitutions and/or lifting of seizures.
Planning early and in coordination with Evans Group ensures strategy, proportionality, and timeliness when requesting, opposing, or substituting precautionary measures, with favorable results for our clients.