Civil Law

The introduction of the New Civil Procedure Rules in Cyprus has brought substantial changes to the litigation process, including the provision for interim payments – a legal mechanism previously unavailable in Cypriot civil litigation. Part 27 of the new Rules establishes the framework for interim payments, offering claimants the possibility to secure part of the sums claimed prior to the final determination of their case.

Derivative actions are a powerful legal mechanism that enables shareholders to bring claims on behalf of a company when those in control fail to act in the company's best interests. Historically, the legal basis for derivative claims has been closely linked to the concept of "oppression", particularly in cases where majority shareholders or directors have acted in ways that harm the company or minority shareholders.

When facing a lawsuit, particularly one that appears unwarranted, identifying procedural or substantive legal flaws can lead to a preliminary dismissal. This strategy not only saves time and resources but also protects your reputation and financial interests. The importance of having an experienced lawyer capable of dissecting legal arguments and uncovering such flaws cannot be overstated.

In the legal realm, securing temporary relief measures like asset freezing is critical in ensuring justice. This tool is especially vital when there is a risk that assets might be misappropriated, dissipated, or concealed before a case reaches its conclusion. Under Article 32 of the Courts of Justice Law, individuals can seek injunctions to preserve assets, offering a safeguard against irreversible harm during litigation.

In today’s interconnected world, safeguarding one’s reputation is paramount, particularly for professionals operating in public-facing or high-stakes industries. A recent case in Cyprus highlights the complexity and importance of defamation laws in protecting individuals from harm caused by false or damaging statements.

Mediation has gained recognition as an effective method for resolving disputes in Cyprus, offering parties a confidential and less adversarial alternative to traditional litigation. The legal framework governing mediation not only facilitates settlement but also provides mechanisms for enforcing these agreements through the courts.

Normally, Courts will not issue a freezing injunction against a person who is not a party to the proceedings and against whom there does not exist a serious issue to be tried. The possibility, however, of issuing an interim injunction against a third party who is not a "substantive" or the "principal" Defendant and against whom there is no serious issue to be tried has been recognised in both English and Cypriot case law.

Under Rule 26 of the new Procedural Rules adopted in September of 2023, a Claimant who has his habitual residence outside the European Union or a Member State of the European Union may, at any stage of the claim, be ordered to provide security for costs, even if  he may reside temporarily within Cyprus or in a Member State of the European Union. It is understood that low-income foreign workers are exempt from any order to provide security for costs.

Recent Developments in the Law on Cyprus Injunctions (Court Orders): The new Appeal Court clarifies the relationship and differences between the duty for Full and Frank Disclosure and the Equitable Doctrine of “he who comes to equity must come with clean hands”:

The courts have the power to issue interim injunctions prohibiting a Party from bringing court or arbitration proceedings.  In general and where there is the element of foreign parallel proceedings, anti-suit injunctions are intended to prevent "forum shopping" or the bringing of proceedings in a "forum non conveniens" or where the foreign proceedings have been issued in bad faith and thus have an oppressive or vexatious effect. Such injunctions are issued in personam, so that they are compatible with the need for comity between different countries and their court systems.

Norwich Pharmacal order (“NPO”), has its roots in the known UK House of Lords case of Norwich Pharmacal Co ν. Commissioners of Customs and Excise [1974]. It requires a party to disclose certain documents or information to the applicant. NPOs are commonly used to identify the proper defendant to an action or to obtain information to plead a claim.

A Claimant who successfully applies in Court for an injunction freezing the assets of a party places themselves in a very strong position from the outset of a dispute, a position which might bring about an early and successful outcome in that dispute. This arguably makes freezing injunctions, also known as "Mareva" injunctions from the English precedent of Mareva Compania Naviera SA v. International Bulk Carriers SA (1975) , the most important and effective type of court orders.

An injunction is an order of the court that requires a party either to do a specified act (mandatory injunction) or to refrain from doing a specified act (prohibitory injunction - for example, not to trespass on identified land). Technological advances combined with the effects of globalisation allow for rapid transactions and thus create the need for more effective remedies and solutions which can be requested and delivered with haste. The Cypriot Courts recognising this need, especially in cases with an international character, have adapted accordingly and have granted to parties various types of injunctions depending on the circumstances of each case.

Ο Δρ. Χρίστος Κληρίδης παρέθεσε ομιλία σε εκδήλωση που διοργανώθηκε στο Ανώτατο Δικαστήριο με αφορμή την Ευρωπαϊκη Ημέρα Δικαιοσύνης στις 25 Οκτωβρίου 2016.

Dr. Christos Clerides, LL.B (Brunel), LL.M (UCL) Ph.D (King’s College), Associate Professor of Law and founding Partner at Phoebus Christos Clerides & Associates LLC, is interviewed for the Cyprus Law Digest regarding the Civil Law and Procedures followed in Cyprus.