Crew Claims - Vessel Arrests in Panama

August 2000

This subject was brought to Members' attention in Sea Venture Vol.18. Unfortunately, vessel arrests have continued to occur in relation to Filipino crew claims and the Panamanian Maritime Court of First Instance has consistently rejected the validity of release documents and jurisdictional arguments. Accordingly, the Court has refused to remit cases to the Philippines.

At present there are some 14 claims on appeal to the Panamanian Supreme Court pending, one of which is due to be heard imminently. This case represents the first occasion on which the Panamanian Supreme Court will consider the principle of forum non conveniens and also the validity of release documents in those cases where the contractual entitlement has already been paid to either the seaman or dependants.

The Panamanian Supreme Court is the final appeal court and in order to create a binding precedent three similar decisions by the Court on the same point will be required.

Despite this worrying trend, claimants' lawyers have, in the majority of recent cases, agreed to accept a Club Letter of Undertaking rather than a bank guarantee or surety bond.

As far as the proposed bilateral treaty between Panama and the Philippines is concerned, there has been some delay due to a change in the Panamanian administration. However, efforts continue through various channels in an attempt to persuade the appropriate authorities to implement the treaty.

There remains deep concern amongst ship owners and the maritime community at large that Panama is still being targeted as a jurisdiction within which to bring Filipino crew claims.