CYPRUS Law and Practice Contributed by: Menelaos Kyprianou, Constantina Zantira, Andreas Lytras and Eleana Poulladou, Michael Kyprianou & Co LLC
In recent years, arbitration has gained significant pop- ularity, especially in construction and cross-border disputes. Its growth is supported by adherence to the New York Convention, which provides for international enforceability of arbitral awards. Arbitration clauses are increasingly included in commercial contracts, reflecting the preference of parties to use arbitration as their chosen method of dispute resolution. Although historically less common, mediation has been steadily gaining traction, particularly in disputes where parties seek to preserve ongoing business relationships. The courts’ active encouragement of mediation under Law 159 (I)/2012, combined with its confidential, cost-effective and generally faster nature, has contributed to its increased use as an alternative to litigation. The limitation periods that apply in relation to different types of claims are regulated by the Limitation Law of 2012 (Law 66 (I)/2012). The general limitation period, where legislation does not provide otherwise, is ten years from the completion of the basis of the claim. The limitation period for contractual claims is six years. The same limitation period generally applies in relation to claims founded in tort. However, specific limitation periods apply in relation to certain torts. In particu- lar, the limitation period for negligence, nuisance and breach of statutory duty is three years and the limita- tion period for defamation and malicious falsehood is one year. Law 66 (I)/2012 also provides that where the claim concerns the fraud of the defendant, or if the defendant intentionally concealed a fact related to the basis of the claim, or if the claim concerns a remedy of consequences inflicted because of a mistake, the limitation period does not start to run until the claimant discovers – or could have discovered by reasonable diligence – the fraud, concealment or mistake. Furthermore, the courts may extend the aforesaid limitation periods by up to two years if this appears to be just and reasonable under the circumstances of the case. 2. Litigation 2.1 Limitation Periods
It is important to note that the issue of limitation is examined by the court only if this matter is raised by a defendant in the proceedings. Otherwise, the court will not examine whether a particular claim is statute- barred. 2.2 Court Structure Since 2023, and pursuant to major reforms in the jus- tice system, the court structure comprises of three tiers. The courts of first instance consist of six Dis- trict Courts, which deal with all civil cases as well as criminal cases concerning offences that are pun- ished with up to five years’ imprisonment. Criminal offences that are punished with more than five years’ imprisonment are tried by the Assize Court. There are also special-jurisdiction tribunals, namely the Family Court, the Industrial Disputes Tribunal and the Rent Control Tribunal. The Administrative Court exclusively tries recourses against administrative acts of state authorities and public bodies and the International Protection Administrative Court deals with political asylum cases. There is also a Military Court, which tries offences committed by members of the military. A major legislative reform is the establishment of a Commercial Court and of an Admiralty Court: how- ever, these do not operate yet. Admiralty cases are currently adjudicated at first instance by a member of the Supreme Court. At the second tier is the Court of Appeal, which hears and tries appeals of civil, criminal and administrative cases. The third tier consists of the Supreme Court and the Supreme Constitutional Court. The Supreme Court, inter alia, hears at third level appeals of civil and crimi- nal nature on points of utmost public interest or of general public importance or on the consistency of law on conflicting decisions of the Court of Appeal. Furthermore, the Supreme Court has exclusive juris- diction to issue prerogative orders of habeas corpus, mandamus, certiorari, quo warranto and prohibition. The Supreme Constitutional Court has, inter alia, juris- diction to hear at third level appeals on administrative law matters on points of utmost public importance or where there are conflicting judgments of the Court of Appeal. It also has jurisdiction to decide on con- stitutional matters referred to by any inferior court,
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