Litigation financing in Panama: a tool for access to justice
Litigation financing, or third party funding (TPF), has been gaining ground in Panama as a key solution to facilitate access to justice, especially in complex or high-value cases. This model allows plaintiffs to obtain the necessary capital to face the costs of litigation, without having to assume the total economic risk. Through specialized funds like Loopa, litigants can focus on their legal claims, without being limited by their financial capacity. This opens the doors to a more accessible justice, allowing individuals and companies to seek the resolution of their disputes without the obstacle of the costs associated with legal proceedings.
History of third party funding in Panama: Loopa as a pioneer in the sector
Third party funding began to gain relevance in Panama in recent years, as the need for financing solutions for long and costly litigation became more evident. Loopa, formerly known as Qanlex, was one of the first funds to introduce this model in the country, marking a milestone in the sector. Since its arrival in Panama, Loopa has worked to offer flexible financing options, allowing litigants to continue with their legal cases without having to assume the total risk of the process costs. Loopa has positioned itself as a reference in litigation financing in Panama, providing financial resources for a wide range of cases, from commercial disputes to litigation against the State. The introduction of this model in the country has helped more individuals and companies access justice, easing the economic burden of prolonged litigation.
The legal framework for TPF in Panama: the autonomy of private agreements within civil law
Panama follows a civil law system, which implies that agreements between parties are governed by principles of autonomy and contractual freedom. This legal framework is particularly suitable for third party funding, as it allows litigants and funders to reach private agreements on financing terms, without direct state intervention, as long as they do not contravene public order laws. Third party funding in Panama is based on private agreements in which the funder assumes the economic risk of the litigation in exchange for a share in the profits obtained if the case is successful. This type of agreement is similar to the practice of contingency fees used by lawyers, although in this case the funder does not necessarily form part of the legal team. The assignment of litigation rights is a key part of the model, allowing the funder to obtain a portion of the economic compensation derived from the litigation if it is resolved favorably.
The application of the FIDIC contract in arbitration: arbitration centers in Panama
In Panama, arbitration is a widely used method to resolve commercial and contractual disputes, both at the national and international levels. Law 131 of 2013 regulates arbitration in Panama, providing a clear and efficient legal framework for dispute resolution outside of traditional courts. Among the main arbitration centers in Panama are the Arbitration Center of the Chamber of Commerce, Industries and Agriculture of Panama, as well as the Dispute Resolution Center of the Bar Association of Panama, which have been instrumental in the administration of arbitration processes. Litigation funding has become a key tool in arbitration, especially in commercial and international disputes, where procedural costs can be high. Loopa, like other funding sources, has expanded its reach to arbitration, providing the necessary resources to finance these cases without the parties having to assume all the economic risk. This allows companies and individuals to continue with their arbitration disputes without the burden of high procedural costs, maximizing their chances of success.
The TPF in judicial disputes: a solution to the duration and costs of cases
In Panama, judicial disputes, especially those involving commercial disputes or claims against the State, can drag on for years, generating high costs that litigants must face. Congestion in the courts and the complexity of cases further increase the financial burden, discouraging many individuals and companies from pursuing their claims. Third party funding provides a crucial solution for these cases. Loopa allows litigants to obtain the necessary financing to cover the costs of litigation, enabling them to pursue justice without worrying about immediate costs. This is particularly relevant in cases against the State, where legal proceedings tend to drag on and create a significant financial burden. With litigation funding, plaintiffs can focus on their cases without the pressure of procedural expenses, increasing the chances of a favorable outcome.
Conclusion: the future of litigation funding in Panama
Litigation financing in Panama is in full growth and is consolidating as a viable option to facilitate access to justice. Loopa, as a pioneering fund, has shown that this financing model is a key tool to ensure that individuals and companies can obtain justice without relying solely on their economic capacity. With the support of specialized funds, litigants can finance their cases, both in courts and arbitrations, and continue with their disputes without the concern of immediate costs. The Panamanian legal framework, based on principles of civil law and contractual autonomy, provides a conducive environment for the expansion of third party funding. As more individuals and companies in Panama become familiar with the benefits of this model, the demand for litigation financing solutions will continue to increase. Loopa will continue to lead this change, providing litigants with the necessary resources to access justice without financial limitations and ensuring that the judicial process is more accessible and fair for all.
