CYPRUS Trends and Developments Contributed by: Menelaos Kyprianou, Constantina Zantira, Andreas Lytras and Eleana Poulladou, Michael Kyprianou & Co LLC
of either primary or secondary substantive legislative provisions. Establishment of Commercial Court and Admiralty Court Another key development as a means of modernising the legal system and strengthening the competitive- ness of Cyprus as a dispute resolution centre is the establishment of a Commercial Court and an Admiralty Court in Cyprus by effect of the Law on the Establish- ment and Operation of Commercial Court and Admi- ralty Court, Law 69 (I)/2022. The operation of the two courts has not yet commenced but is anticipated soon given their major, strategic importance. The Commercial Court will have jurisdiction to hear cases of a commercial nature, the value of which will exceed EUR2 million, except certain disputes that can be heard irrespective of their value, such as competi- tion law claims for damages, intellectual property mat- ters and disputes involving arbitration matters, as per the term “commercial dispute”, which shall be inter- preted under the said law. The term includes a wide range of disputes, including: • matters arising or related to a business document or contract; • the purchase, sale, import or export of goods; • the carriage of goods by land, air or pipeline; • the exploitation of oil, natural gas or other natural resources; • insurance and reinsurance matters; • the operation of markets or exchange of stocks, shares or other financial or investment instruments or goods; • the provision of services with certain exclusions; • vehicle manufacturing; • commercial agency; • competition law claims; and • disputes between shareholders of entities super- vised by any supervisory authority in the Republic of Cyprus. The Commercial Court may have jurisdiction to hear a matter irrespective of the fact that neither of the par- ties has any connection with Cyprus whatsoever (ie, place of residence or establishment of a legal entity or place of business), provided they jointly decide by
written agreement that, in case of any dispute, it shall be resolved by this court. The establishment of an Admiralty Court aims to provide an appropriate forum for the determination of admiralty cases which, since the establishment of the Republic of Cyprus in 1960, were heard by the Supreme Court in its admiralty jurisdiction. The new Civil Procedure Rules 2023 in turn provide a specific set of procedural rules regulating: • the proceedings to be brought before the Admiralty Court (Part 43); • the pleadings for actions against a person (in per- sonam)or against a thing (in rem); • claims arising from a collision of ships; • claims for the limitation of liability under the Convention on Limitation of Liability for Maritime Claims, 1976 and the Protocol of 1996, ratified in 2005; • claims for salvage; and • caveats and proceedings for seizures. The rules provide that the Admiralty Court may grant any relief without the need for a written, filed applica- tion if the case is urgent and the interests of justice so require, and even the filing of applications outside the Registry’s office hours in urgent cases. By effect of the 16th amendment of the Constitution in 2022, English, which is not an official language, may be used in conducting the proceedings and in the fil- ing of documents at the Commercial Court and the Admiralty Court if the interests of justice so require. English may even be designated as the language in which the proceedings will be conducted and in which the judgments of these new Courts will be issued. This further enhances the positioning of Cyprus as a centre for dispute resolution on high-value, cross- border matters. Forthcoming courts service Another major development is the forthcoming estab- lishment of a Courts Service which will be responsible for all aspects of management, organisation, adminis- tration and support of the Courts, aiming to enhance the efficiency of the system.
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