CYPRUS Law and Practice Contributed by: Kyriacos Scordis, Alexandros Gavrielides, Chara Pieri and Demetris Yiannakou, Scordis, Papapetrou & Co LLC
2. Litigation Funding 2.1 Third-Party Litigation Funding It is unclear whether third-party litigation funding is permitted in Cyprus as there is no specific leg- islation governing the issue and this matter has not been determined conclusively by the Cypriot courts. There is only one first instance decision where the court, taking into account that there is no legislative provision prohibiting third-party litigation funding in Cyprus, decided that third- party litigation funding is not contrary to public policy. 2.2 Third-Party Funding: Lawsuits There are no provisions limiting the availability of third-party funding to specific lawsuits. 2.3 Third-Party Funding for Plaintiff and Defendant There are no provisions limiting the availability of third-party funding to the claimant. 2.4 Minimum and Maximum Amounts of Third-Party Funding Given that there are no provisions governing third-party funding, there are no minimum or maximum amounts that a third-party funder may fund. 2.5 Types of Costs Considered Under Third-Party Funding There are no provisions limiting the types of costs which a third-party funder may fund. 2.6 Contingency Fees Contingency fees are not permitted in Cyprus.
2.7 Time Limit for Obtaining Third-Party Funding There is no legislative provision limiting the peri- od within which a party to the litigation should obtain third-party funding.
3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct
The new Civil Procedure Rules (CPR), which entered into force in 2023, provide for certain “Pre-action Protocols” which are generally required to be followed in all types of claims before legal proceedings are commenced, with special rules applying to specific types of claims, namely: • Protocol I (Type I) concerning claims for a liquidated sum; • Protocol II (Type II) in relation to claims arising from road traffic accidents and personal injury claims; and • Protocol III in relation to cases which are not covered by any other protocol The Civil Procedure Rules have also introduced a general requirement for the parties to follow a “reasonable procedure” before commencing legal proceedings with a view to avoiding litiga- tion. The claimant is required to send a demand letter in accordance with the respective form provided by the CPR setting out the nature and factual basis of the potential claim together with any key documents. The prospective defendant is required to respond within the specific deadline and inform the claimant whether the claim is accepted or not. If the claim is not accepted, the prospective defendant should set out the detailed reasons for such rejection and provide
327 CHAMBERS.COM
Powered by FlippingBook