The Panama Canal Authority has enjoyed for more than 100 years a unique system for the investigation of marine accidents that occur within its waters, which allows for friendly settlements with its customers, avoiding long and costly litigations at the Maritime Tribunals.
Since 1909, even before the Canal opened its doors to world shipping, the Board of Local Inspectors was established and was charged with conducting formal investigations of marine accidents involving vessels navigating in Panama Canal waters under the control of Panama Canal pilots. Pilots in the Panama Canal take over control of the movement and navigation of transiting vessels, which is also unique, which could be the subject for another discussion.
Until 1999, the Board was known as the Board of Local Inspectors, since it was part of the Canal Zone system and under the jurisdiction of the Louisiana Maritime Courts. After the transition to Panama of the Canal, the name changed to Board of Inspectors, no longer “Local”.
The Organic Law of the Republic of Panama, which created the Panama Canal Authority under Panamanian jurisdiction, also established the process under which vessels would be able to present claims for damages while under the control of Panama Canal pilotage. The Law also established that in order for the Panama Canal to be able to accept any claim and process its payment, a formal investigation conducted by the Board of Inspectors, which requires a formal hearing, would have to take place prior to the vessel´s departure from Panama Canal waters.
The Board conducts a formal investigation process, with all witnesses rendering testimony during the hearing under oath, who are subject to the Penal Code of Panama. The hearings are conducted within 24 hours of the accident having taken place, so all witnesses have a good recollection of the facts.
The Board publishes its reports about a month after the hearing, which contains the findings and opinion of the Board, establishing the cause of the accident and who is or are responsible. The report also contains a complete verbatim transcript of the formal hearing. Once the report is published, the Panama Canal and the lawyers representing the vessel meet to arrive at a friendly settlement, which has been historically the case in over 95 per cent of the cases.