Latest updates

Court clarifies application of Article VI of New York Convention
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • 30 May 2019

In a recent Limassol District Court case, the applicants applied for the recognition and enforcement of an arbitral award issued by the Arbitration Institute of the Stockholm Chamber of Commerce. The case is one of the first examples of the judicial interpretation and application of Article VI of the New York Convention by the Cypriot courts and serves as a useful guide to the proper procedure to be followed by parties when invoking said article.

Supreme Court examines appeal against decision by Land Registry director
  • Real Estate
  • Cyprus
  • 17 May 2019

The Supreme Court recently issued its decision on the appeal of a district court interim decision concerning an application to present oral evidence as part of an application against a decision by the director of the Land Registry. The applicants had filed their application against the director's decision to grant a right of way to the respondent to the detriment of their immovable property.

District court rejects public policy argument against recognition of arbitral award
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • 04 April 2019

A recent Limassol District Court decision serves as a useful reminder that the courts will rarely resort to public policy grounds for refusing the recognition of arbitral awards unless presented with cogent evidence. In addition, the courts are prepared to demonstrate the necessary flexibility dictated by modern commercial practices in examining the imperative requirements of Article IV of the New York Convention in a manner which will not hamper the convention's underlying objectives.

Supreme Court declares legislation extending paternity leave and benefits to unmarried fathers unconstitutional
George Z Georgiou & Associates LLC
  • Employment & Benefits
  • Cyprus
  • 06 March 2019

In late 2018 the House of Representatives introduced amendments which granted paternity leave and benefits to unmarried working fathers. However, the government referred the amending laws to the Supreme Court, claiming that they would add unbudgeted costs to its budget and therefore violate the Constitution. The Supreme Court recently accepted the government's position and declared the amendments unconstitutional.

Rent Control Court awards damages to owner after tenant is evicted
  • Real Estate
  • Cyprus
  • 22 February 2019

The Limassol Rent Control Court recently dismissed an application regarding the eviction of a tenant from a leasehold. Since it was ruled that the first and second applicants had never owned the property, they were not entitled to file the eviction application. However, the court awarded damages in relation to unpaid rent to the third applicant (who became the actual owner of the property after the application).

Employment law amendments introduced for seagoing vessels and crew
  • Employment & Benefits
  • Cyprus
  • 20 February 2019

Four employment laws concerning seagoing vessels and their crew were recently amended. Among other things, the amendments relate to transfers of seagoing vessels and their crew under a transfer of undertakings, the definition of a 'competent authority' for notifying collective redundancies and the role and protection of merchant vessel crew members who act as employee representatives.

Nature of foreign arbitral award not altered despite judicial recognition by another EU member state
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • 07 February 2019

In a recent Limassol District Court case, the applicants applied to the court to set aside a Cypriot court order which had allowed the ex parte recognition and enforcement of a Dutch judgment pursuant to the EU Brussels Regulation or, alternatively, the recast EU Brussels Regulation. The applicants raised several arguments to support their application – in particular, the fact that the Netherlands judgment allowed for the registration and execution of the arbitral award only in the Netherlands.

Rent control court rules on outstanding rent
  • Real Estate
  • Cyprus
  • 14 December 2018

The Nicosia Rent Control Court recently ruled on the outstanding rent of a statutory tenant. The court held that a provision for the increase of rent provided for in a tenancy agreement does not apply once the tenancy is converted into a statutory tenancy. However, by interpreting the terms of the tenancy agreement (which had been terminated in this case), the court concluded that it had not provided for an increase in rent during the first tenancy period.

Supreme Court dismisses appeal in Michaelides v Cooperative Bank of Pegia
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • 13 December 2018

The Supreme Court recently dismissed an appeal of a first-instance judgment which had applied the well-established principle that arbitral award registrations are a formality wherein district courts do not proceed to examine the merits or substance of the award. The Supreme Court rejected all of the appellant's arguments, dismissed the appeal in its entirety and endorsed the first-instance court's approach, which had been based on well-established case law.

Supreme Court clarifies burden of proof in wage protection cases
  • Employment & Benefits
  • Cyprus
  • 28 November 2018

Cyprus case law has long established that reverse onus in criminal cases does not transfer the burden of proof to defendants; rather, it allows them to create reasonable doubt with respect to their guilt. A recent Supreme Court decision has confirmed this in regard to wage protection and clarified that all criminal courts (ie, not just employment tribunals) must examine the facts that establish employment relationships and interpret employment contracts where said facts are disputed.

Amendments to Transfer and Mortgage of Immovable Property Law introduced
  • Real Estate
  • Cyprus
  • 05 October 2018

Law 8(I)/2018 came into force in July 2018, amending the Transfer and Mortgage of Immovable Property Law. The new legislation was applied for the first time in a recent Nicosia District Court case, which is considered to be of great importance in assessing how the courts will interpret the new law in future. The case concerned an auction procedure which had been initiated by the sending of the relevant documents and notices to the mortgagor, which filed a lawsuit against Hellenic Bank to suspend a foreclosure procedure.

Appellants partially succeed in challenging first-instance court judgment
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • 04 October 2018

The Supreme Court recently ruled that only part of a court judgment that had upheld an arbitrator's decision would be set aside. The appellants had raised a number of objections in their appeal, including that the summons to recognise and enforce the arbitral award had been filed improperly as the hearing had not been conducted in the same manner as a lawsuit, the parties had not agreed to refer the dispute to an arbitrator and the arbitrator had not had the legal authority to issue a mortgage disposal order.

Legislation extending paternity leave to unmarried fathers referred to Supreme Court
  • Employment & Benefits
  • Cyprus
  • 19 September 2018

The Protection of Paternity Law provides paternity leave only to men who are married to their child's mother before the child's birth or adoption. The House of Representatives recently tried to address this oversight by introducing an amending law, under which all fathers would be entitled to paid paternity leave regardless of their marital status. However, these changes have yet to come into force because the president referred the amending laws to the Supreme Court, claiming that they are unconstitutional.

Supreme Court annuls arbitral award due to arbitrator's impartiality
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • 02 August 2018

In a recent Supreme Court case, the appellants appealed to the court to set aside or annul the first-instance court judgment which had upheld an arbitrator's decision. The Supreme Court agreed with the appellants' position on the matter and stated that the first-instance court had failed to deal with the examination of the legitimacy of the arbitration proceedings and the manner in which the arbitrator had conducted the proceedings.

Industrial Disputes Tribunal rules that contract for services constitutes contract of employment
  • Employment & Benefits
  • Cyprus
  • 01 August 2018

The Industrial Disputes Tribunal recently issued a decision regarding a person working for the Cyprus Tourism Organisation (CTO) under a series of fixed-term contracts, some of which were referred to as contracts of employment and others as contracts for services. The tribunal ruled that, even when working under an alleged contract for services, the applicant was a CTO employee working under a genuine contract of employment.

Legal reform proposals over appointment of receivers
  • Insolvency & Restructuring
  • Cyprus
  • 08 June 2018

Members of Parliament have proposed legal reforms with the aim of regulating the procedure for the appointment of receivers by debenture holders. The issues under scrutiny are that borrowers have no say during the procedure for the appointment of a receiver, and that issues with the impartiality of the receiver can arise on many occasions. However, the proposal has encountered the resistance of financial institutions.

New legislation for pregnant women and new mothers in workplace
  • Employment & Benefits
  • Cyprus
  • 06 June 2018

Parliament recently introduced new legislation that aims to promote and support breastfeeding in the workplace and enhance the legal protection for working pregnant women and new mothers. One law established the minister of health as the competent authority for the promotion and protection of breastfeeding, while another extended the period during which pregnant women are protected against dismissal and established the right for working mothers to breastfeed or pump and store milk in the workplace.

Court finds real likelihood of bias and orders arbitrator's dismissal
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • 24 May 2018

In a recent Limassol District Court case, the applicants applied for the dismissal and replacement of an arbitrator. They argued that the relationship between the arbitrator and the respondents' main witness in the arbitration proceedings and his brother would lead a reasonable person to find that there was a real likelihood of bias. As a result, the applicants argued that the relationship between the parties constituted misconduct in arbitration proceedings.

From Russia with love? District court rejects application to enforce Russian arbitral award
George Z Georgiou & Associates LLC
  • Arbitration & ADR
  • Cyprus
  • 12 April 2018

In a recent Limassol District Court case, the applicants requested the registration and enforcement in Cyprus of a Russian arbitral award. Τhe court found that the applicants had failed to provide evidence of whether Russia was a contracting state to the New York Convention and that the award's translation did not fulfil the convention's requirements. As a result, the application to register and enforce the arbitral award was rejected.

Imposition of fine on company in liquidation
  • Insolvency & Restructuring
  • Cyprus
  • 23 March 2018

A district court recently sentenced a company in liquidation that had once been Cyprus's biggest grocery retail company. The sentence concerned the issuance of a cheque with insufficient funds. According to the court, the fact that the company was under liquidation did not negate the fact that a sentence should be proportionate to the offence and act as a deterrent. The case is a useful illustration of how companies in liquidation should be treated when it comes to the imposition of fines.