Announcement on the Mediation Bill
The Cyprus Bar Association (CBA) was informed on Friday, January 3, 2024, about the decision of the Council of Ministers to approve a bill making mediation mandatory before filing claims for commercial disputes up to €10,000.
During the consultation phase conducted by the Ministry of Justice and Public Order—prior to the current Board of Directors assuming office—the former President of the CBA expressed support for mandatory mediation in a letter dated April 7, 2023 (click HERE to view the letter), recommending that this apply to claims up to €10,000, rather than the initial proposal of €5,000 outlined in the draft bill.
The CBA’s Board of Directors will collectively review the bill’s provisions and submit recommendations aimed at improving the framework, making mediation an accessible and effective method of out-of-court resolution for small claims. The CBA will keep its members informed of any developments.
On this occasion, we wish to reiterate that the modernization of the justice system remains a key priority and objective for the CBA.
Mediation, like arbitration, must be embedded in the public’s mindset as an alternative dispute resolution method and is essential for an efficient justice system. The CBA, through its Arbitration and Mediation Centre, actively promotes the enhancement of these institutions.
The legal profession plays—and must continue to play—a pivotal role in the mediation process, both in terms of education and in representing parties in mediation procedures.
Alternative dispute resolution methods complement any modern legal system, contributing to the swift and definitive resolution of disputes. However, these methods should supplement, rather than replace, the judicial system. The primary focus must remain on developing a modern justice system.
For decades, no significant progress was made, leading to the accumulation of systemic problems and public disillusionment regarding access to justice.
The consequence of this stagnation is evident today, with a substantial decline in the number of new claims filed in courts (e.g., only 1,700 cases filed in Nicosia in 2024, compared to tens of thousands in previous years).
It is now clear that the objective should no longer be the mere decongestion of the courts, as this issue may naturally resolve itself in a few years due to the low filing rates. Instead, efforts should focus on designing and implementing a robust, modern justice system, incorporating innovative ideas and fully utilizing available technological tools.
Although some steps towards modernization have been taken in recent years, they remain insufficient. Cyprus is far from presenting a comprehensive justice system that reflects a modern rule of law. Particularly in the first-instance courts, aside from the introduction of new civil procedure rules—which, so far, have shown limited impact on reducing case durations—no other substantive changes have been made.
The CBA remains committed to supporting all efforts to modernize the justice system and will continue to submit proposals and engage in consultations with relevant stakeholders until the goal is achieved: a strong, modern, and citizen-friendly justice system that meets the needs of both individuals and businesses in Cyprus.
HOW WE CAN ASSIST YOU
At Andria Papageorgoiu Law Firm, we recognize the critical importance of alternative dispute resolution methods, such as mediation, in streamlining legal processes and achieving fair outcomes for all parties involved. Our law firm is proud to have certified mediators with extensive experience in handling commercial and civil disputes. Our team is committed to guiding clients through every stage of the mediation process, ensuring that their interests are effectively represented and that solutions are achieved efficiently and amicably.
We understand that disputes—whether small or complex—require more than just legal expertise; they require a strategic, client-centered approach to achieve swift and cost-effective resolutions. By engaging with our expert mediators, clients benefit from a structured yet flexible process that minimizes delays, reduces costs, and preserves valuable relationships.
Whether you are facing a commercial disagreement or any other legal challenge, Andria Papageorgiou Law Firm is equipped to assist you every step of the way, offering tailored support and solutions that align with your unique goals. We believe in empowering our clients by making dispute resolution a less burdensome and more constructive experience.
Our commitment to excellence and innovation positions us as a trusted partner in alternative dispute resolution.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
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