The Supreme Court ends the legal limbo in lawsuits against consumers
- May 8
- 2 min read
Updated: May 11
The First Civil Chamber of the Supreme Court of Justice of Panama, through Resolution of April 6, 2026, issued a decision of special relevance to the judicial system and business legal security in the country.
The precedent addresses a procedural problem that for years generated uncertainty in litigation arising from consumer relations: the delimitation of powers between the ordinary civil jurisdiction and the special jurisdiction for consumer protection.
The Court established a clear and technically relevant criterion: the existence of a consumer relationship does not automatically determine the competence of the special jurisdiction.
When the legal action is initiated by the economic agent, jurisdiction lies with the ordinary civil courts.
The decision corrects a procedural distortion that caused negative conflicts of competition and risks of denial of justice for economic agents, particularly in claims related to breach of contract, collection of penalties and damages.
The ruling has significant practical implications for businesses (economic actors):
Greater legal certainty and procedural predictability.
Clarity regarding the competent jurisdiction.
Cost reduction and unnecessary delays.
Strengthening effective judicial protection.
Greater efficiency in the performance of contractual obligations.
Furthermore, the precedent adequately delimits the scope of consumer protection jurisdiction, reaffirming that its main purpose is the protection of the consumer as a vulnerable party, without turning it into a universal jurisdiction for any dispute related to consumer relations.
This decision represents an important contribution to the development of Panamanian jurisprudence and to the institutional strengthening of the justice system.
As a firm, we are honored to have led the legal strategy behind a precedent that contributes to generating greater procedural consistency and confidence in the legal framework applicable to commercial and contractual relationships in Panama.
Licdo. Christopher Ellis
