Appeal Ruling: Tribunal reversed $40K sanction imposed on Lisa

On July 9, 2025, the First Superior Tribunal of Panama issued a partial modification of Sentencia No. 71, reversing the $40,000 in legal costs originally imposed on Lisa, S.A. The trial court had ordered Lisa to pay costs after dismissing its summary accounting claim, but the appellate court held that there was no evidence of bad faith or procedural abuse that would justify such a penalty under Article 1071 of the Judicial Code.

The Tribunal emphasized that Lisa’s claim was based on a legitimate legal controversy and supported by documentary evidence, even if ultimately unsuccessful. Because Lisa’s conduct did not reflect recklessness or dishonesty, the sanction was deemed unfounded. The rest of the original judgment — including the dismissal of the claim — remains in force.