1. 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

2. The Panamanian
Legal System
Civil Law Jurisdiction
Single 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)

3. The United States
Legal System
Common Law Jurisdiction
Multiple Sovereigns
Jurisprudence binding
“Stare Decisis”
One Federal Constitution – Supremacy Rule
Several State Constitutions
Federalism / States Rights
Commerce Clause
Federal Laws - US Code – Code of Federal Regulations
State Laws – State Statutes - State Codes
Federal Courts
State Courts

4. The United States
Legal System
Federal Court Jurisdiction
Federal Law Issues
Diversity of Citizenship
U.S. Supreme Court Review
Conflict between Circuit (Appellate Courts)
US Constitutional Matters
Writ of Certiorari
Lifetime appointment of Federal Judges

5. 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

6. General Features (…/)
Minimal government interference in
non regulated industries
Freedom to contract
Individual freedoms
Trends toward arbitration law

7. Intellectual Property
Copyrights
Patents
Trademarks
Trade Secrets
License
Franchises

8. Issues Facing Lawyers
Supreme Court Regulation in Panama
State Supreme Court Regulation in the United
States
National Bar Admission in Panama
No mandatory association membership
State Bar Admissions in the United States
Mandatory association membership
Hourly Fees - Preferred in the United States
Value Based Fees – Preferred in Contingency Fees
Panama – Trend Changing in the United States

9. Dispute Resolution
Court Systems
Arbitration - Mediation
Constitutionally Sound
Quick
Flexible
Enforceable
Professional
Granted full faith and credit
International or Domestic

10. Recommendations for doing
business across borders
Find a reliable trading partner
Conduct due diligence
Research the Market
PUT IT IN WRITING!
Include Arbitration
THINK REGION!
Request guarantees (personal real and
documentary)

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

12. 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)