Dispute Resolution 2026

CYPRUS Trends and Developments Contributed by: Menelaos Kyprianou, Constantina Zantira, Andreas Lytras and Eleana Poulladou, Michael Kyprianou & Co LLC

Procedural Digitalisation Courts have increased their efficiency and speed through the implementation of the electronic platform named “iJustice” since July 2021. The system is fully installed and implemented, covering most types of civil cases and appeals in all districts of Cyprus. It allows the digital filing and payment of court fees with automated calculation, providing a secure and user- friendly online platform. The digital audio recording (DAR) in courts is next expected, introduced to replace the stenotyping method that is currently used in hearings, and aiming to enhance the efficiency, quality and transparency of the proceedings. Technology and Artificial Intelligence The legal industry is experiencing a major shift as a result of the rapid advancement of technology. The integration of technological tools into daily practice is not merely a trend but a necessity to enhance efficien- cy, reduce costs and advance the administration of justice by enabling the court to deal with cases justly and at proportionate cost, as per the overriding objec- tive embedded in the Civil Procedure Rules 2023. The use of technology by courts to effect the duty of active case management and securing fair trials for all is explicitly referred to in the procedural rules. Courts already use technology by reference to the Electronic Justice (Electronic Communication) Procedural Regu- lation of 2021, which allows electronic correspond- ence with courts as a means to respond to the dif- ficulties in administering justice after the worldwide spread of COVID-19. Technology in the taking of evidence is a key aspect of modernising the legal system to the benefit of the par- ties involved, where the interests of justice so allow. Courts in Cyprus have the power and the discretion to allow the taking of evidence of a witness who is out- side the country through videoconferencing facilities by reference to a provision in the Evidence Law, Cap 9, applicable both in civil and criminal proceedings (reference is made to the introduction of Section 36A by the Amending Law 122 (I)/2010). The court may impose any conditions deemed necessary, provided that these are not inconsistent with the obligations

that bind Cyprus under bilateral or international trea- ties governing the matter. To date there are no specific procedural rules to gov- ern the matter. However, by reference to a general principle established by the Supreme Court of Cyprus, the absence of mere procedural rules does not mean that the rights granted become inactive ( Udruzena Beogradska Banka v Westacre Investment , Inc (1999) 1 (Α) Α.Α.D. 124). Cyprus case law on the matter is currently being developed as applications of this nature see an increase, showing the courts’ flexibility and willingness to ensure that the absence of specific regulations and arrangements cannot deprive a per- son from legislatively protected rights. The adoption of hybrid trials on a case-by-case basis is expected to be developed, which highlights the need to upgrade the courts’ infrastructure to adopt to the new realities. Artificial intelligence (AI), including generative forms, is another emerging trend. Its use is generally adopted for document review, legal research, predictive ana- lytics and drafting. The Cyprus courts have not yet issued a judgment on issues concerning the use of AI in the legal profession. Foreign judgments are closely monitored, as well as the European framework on the matter, including relevant guides such as the CCBE (Council of Bars and Law Societies of Europe) guide on the use of generative AI by lawyers dated 2 Octo- ber 2025. Cultural Shift in Litigation The introduction of a mandatory pre-action frame- work under the Civil Procedure Rules 2023 (allow- ing only limited exceptions) indeed created a major cultural shift. Lawyers and parties are required to engage in detailed and substantiated demands and letters in response, disclosing all material documents in advance. A considerable number of disputes are settled at a very early stage as parties are aware of the broad powers of courts to impose costs rulings or other orders if it later appears that a party unrea- sonably declined to accept settlement or enter into discussions. This is reflected in the number of court cases filed in all districts, which is evidently lower than the number of cases filed before. This is a positive shift towards proceeding with cases that need the

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