What Happened
Panama’s entry into Law 402 of 2023, which adopts the new Civil Procedure Code, marks a major shift in civil litigation by placing the preliminary hearing at the heart of the process. The reform is designed to move civil disputes away from a paper-heavy model and toward a faster, more direct system in which judges play an active role from the start.
Under the new framework, the preliminary hearing is no longer a formality. It is the stage where procedural defects can be corrected, objections can be resolved, and the scope of the dispute can be defined before the case advances further. That approach reflects a broader effort to reduce delays that have long characterized civil cases.
A Different Role for Judges
The new code gives judges a more hands-on function. Instead of waiting until the end of the case to engage deeply with the facts and procedural issues, judges are expected to guide the process earlier and more directly. That includes checking whether the case is properly formed and ensuring that the litigation moves forward on a clean procedural footing.
This change reflects principles of concentration and procedural economy. By handling multiple issues in one hearing, the system aims to avoid the long buildup of written motions and repeated procedural disputes that could slow a case for months or years under the old model.
Why the Preliminary Hearing Matters
The preliminary hearing also changes how evidence is handled. Rather than allowing every proposed item of proof to move forward automatically, the judge and the parties now review whether each piece of evidence is useful, relevant, and necessary. The goal is to keep unnecessary material out of the final hearing and focus the case on what truly needs to be decided.
Conciliation is another key element. The new code places settlement efforts much closer to the center of the process, encouraging the parties to resolve disputes before a full trial becomes necessary. In that sense, the reform treats a negotiated outcome not as an exception but as one of the system’s main goals.
Risks and Broader Impact
One concern is that the preliminary hearing could become a “mini trial” if the issues are not tightly controlled. For the reform to work as intended, the judge must keep the hearing focused on procedural cleanup, defining the dispute, and deciding what evidence belongs in the case.
For Panama’s civil justice system, the reform represents more than a procedural update. It is a push toward a more oral, efficient, and immediate model of justice. Its success will depend not only on the text of the code, but also on disciplined courtroom practice and the technological capacity needed to support a modern system.