CYPRUS Law and Practice Contributed by: Kyriacos Scordis and Sofi Mylona, SCORDIS PAPAPETROU & Co LLC
5.12 Damages in the Event of Wrongful Arrest of a Vessel Damages for “wrongful arrest” may be awarded in favour of the owner of the arrested vessel, if the arresting party has acted in bad faith or through gross negligence (the relevant English law principles are fol - lowed). 6. Passenger Claims 6.1 Laws and Conventions Applicable to the Resolution of Passenger Claims The main international conventions and domestic laws applicable to Cyprus for maritime passenger claims are as follows. • The LLMC Convention, specifically its Article 2.1 (b) (and subject to certain exceptions mentioned in Articles 3 and 4), pursuant to which claims in respect of loss resulting from delay in the carriage by sea of cargo, passengers or their luggage shall be subject to limitation of liability. • Regulation (EU) No 1177/2010 concerning the rights of passengers when travelling by sea and inland waterways. • The Merchant Shipping (Liability of Carriers of Passengers by Sea in the Event of Accidents) Law No 5 (I)/2014, transposing Regulation (EC) No 392/2009 on the liability of carriers of passengers by sea in the event of accidents into national law (although Cyprus is not a contracting member of the Athens Convention, Law No 5 (I)/2014 incorpo - rates provisions of that Convention). This sets out limitations of liability for death, personal injury, and loss and damage to luggage and vehicles. • The Shipwrecked Passengers Law, Chapter 297, which sets limitations for the amount recovered for expenses related to the harbouring and forwarding of shipwrecked passengers. See 4.5 Time Bar for Filing Claims for Damaged or Lost Cargo regarding the time bar for filing court claims in Cyprus for bringing a claim in breach of con - tract and in negligence. Claims for indemnities for personal injury of a passen - ger can be recognised as maritime claims.
• any resolution regarding the liquidation of the com - pany has not been approved and published in the Official Gazette of the Republic; and • no decree has been issued for the liquidation of the company. The court shall issue an order only if it is satisfied that there is a reasonable prospect of the survival of the company and of all or any part of that undertaking as an active entity (going concern). The court granting an order for the appointment of an examiner places the company under court protection for a certain period of time. The examiner formulates a scheme of arrange - ment, which requires the approval of at least one class of creditors before it can be brought before the court for approval. The question of whether an order on the arrest and judicial sale of a vessel, owned by owners that are under the proceedings mentioned above, can be granted has not yet been decided before the Supreme Court. However, the Law provides that the following provisions will apply for as long as a company is under the protection of the Court: • no liquidation proceedings may be instituted against the company, nor may a resolution for liquidation be adopted in relation to that company – and any resolution thus adopted shall have no effect; • no seizure in the hands of a third party, suretyship, seizure or execution shall take place in respect of the property or objects of the company, except with the consent of the examiner; • in the event that any claim against the company is secured by a mortgage, lien or pledge on or affecting all or any part of the company’s property, objects or income, no action may be taken for the liquidation of all or any part of this security, except with the consent of the examiner; and • no measures may be taken to recover goods held by the company in accordance with any lease agreement, except with the consent of the exam - iner.
198 CHAMBERS.COM
Powered by FlippingBook