CYPRUS Law and Practice Contributed by: Agathi Zervou and Maya Athanatou, George Z. Georgiou & Associates LLC
tion. The system therefore provides flexibility for fraud victims to pursue both routes, provided they do so in good faith. 2.6 Judgment Without Trial A claimant may obtain a default judgment where the defendant fails to take the required procedural steps, such as failing to file a notice of appearance or a defence within the prescribed time limits. In addition, a summary judgment is generally avail - able in civil proceedings where the defendant has no real prospect of successfully defending the claim, and there is no other compelling reason for the case to proceed to trial. However, in practice, a summary judgment would rarely be granted in fraud cases, as such claims typically involve complex factual issues and issues of credibility that require cross-examina - tion of witnesses and, often, evidence from experts. 2.7 Rules for Pleading Fraud CPR Rule 16.13 provides that a party relying on alle - gations of fraud is required to expressly and specifi - cally set out such allegations in their pleadings. This includes identifying the precise acts said to constitute fraud, providing full particulars of any misrepresenta - tions and detailing any alleged breaches of fiduciary duty, notification or knowledge of relevant facts. 2.8 Claims Against “Unknown” Fraudsters There is no express provision in the CPR in Cyprus per - mitting claims to be issued against persons unknown. Cyprus courts have not yet directly addressed the specific issue of claims against unknown fraudsters, but given Cyprus’s established practice of following English common law principles – particularly in the area of injunctive relief and fraud litigation – it is pos - sible that such claims would be permitted when the issue arises. The anticipated approach would require that unknown defendants be described with sufficient certainty to clearly identify who falls within and out - side the scope of the claim, and that these persons, while currently unidentified, must be capable of being identified and served with proceedings. The overarching principle is that courts may adopt innovative procedural tools to combat fraud and pre -
vent injustice, balancing the need to provide victims with effective remedies against the requirement that defendants receive fair notice of claims against them. This framework aligns with developments across common law jurisdictions where “persons unknown” injunctions and freezing orders have become estab - lished mechanisms for addressing modern fraud, particularly in cases involving cryptocurrency, online fraud or other sophisticated schemes where perpetra - tors intentionally obscure their identities. 2.9 Compelling Witnesses to Give Evidence The court may compel a witness to give evidence and produce documents by issuing a witness summons. Once the summons has been properly served, the wit - ness is under a legal obligation to comply and any failure to do so without lawful excuse may be treated as contempt of court. 3. Corporate Entities, Ultimate Beneficial Owners and Shareholders 3.1 Imposing Liability for Fraud on a Corporate Entity A company may be held responsible on the basis of vicarious liability for the acts or omissions of its employees or agents acting within the scope of their authority. In such cases, the conduct of the employee is treated as the conduct of the company. In fraud cases, where establishing liability in many causes of action depends on proving a particular state of mind, the courts will apply the identifica - tion (or “directing mind and will”) doctrine. The court essentially examines the acts and state of mind of those individuals who represent the company’s direct - ing mind, typically directors, senior officers or others exercising real decision-making authority and control over the company’s affairs. Where such individuals act within the scope of their authority and engage in fraudulent conduct, their knowledge and intent are attributed to the company itself, thereby rendering it liable.
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