The Cyprus Council of Ministers has approved an amendment requiring mandatory mediation for civil disputes valued at up to €10,000 before filing a lawsuit in court. This initiative, which forms part of a broader effort to modernise the justice system, reflects the government’s commitment to promoting alternative dispute resolution (ADR) mechanisms. The amendment aims to expedite the resolution of minor disputes while relieving the overburdened courts, ultimately ensuring swift and efficient justice.
Mandatory mediation process
The legislation requires parties involved in civil disputes under €10,000 to attend an initial mediation session before initiating court proceedings. The objective is to resolve disputes amicably and efficiently, reducing the need for lengthy and costly litigation. Key features of the process include:
- Mandatory Preliminary Session: All civil disputes valued at up to €10,000 must undergo an initial mediation session.
- Informal and Confidential Setting: Mediation sessions are designed to be user-friendly, encouraging dialogue and fostering creative solutions.
- Litigation as a Last Resort: If mediation fails, parties retain the right to proceed to court.
This approach not only reduces legal fees but also expedites the resolution of disputes, offering a collaborative alternative to traditional litigation.
Impact on the justice system
Mandatory mediation is expected to significantly ease the burden on Cyprus’s overburdened courts. By diverting minor disputes away from litigation, the reform fosters a culture of dialogue and cooperation, making the legal system more accessible and efficient. Additionally, this initiative aligns with international best practices in ADR, strengthening the credibility of the Cypriot legal framework and empowering individuals and businesses with less adversarial conflict resolution options.
Advancements in mediator regulation
The bill introduces several measures to enhance the professionalism and integrity of mediation services:
- Unified Mediators’ Registry: A single, consolidated registry will encompass mediators from the Technical Chamber of Cyprus (ETEK), the Cyprus Chamber of Commerce and Industry (KEVE), and the Cyprus Bar Association.
- Mandatory Training: All mediators must complete a 24-hour training programme to ensure professional competence and skill.
- Oversight and Accountability: The Ministry of Justice is empowered to suspend or revoke a mediator’s registration, reinforcing trust in the mediation process.
These advancements ensure high-quality mediation services and build confidence in ADR mechanisms as a reliable alternative to court proceedings.
Additionally, at the recent annual Procedural Law Unit Symposium organised by our partner Nicolas Kyriakides, there have been relevant discussions focused on the Cypriot government’s proposed bill to introduce mandatory mediation for small claims under €10,000. While the initiative aims to simplify dispute resolution through alternative methods, concerns were raised about the €150 mediation fee and the exclusion of claims against the government, which will instead be handled through a new complaints procedure. A platform for filing claims under €10,000 is expected to launch soon, providing immediate responses on claim acceptance. For more information on this particular topic, watch here.
Further analysis regarding the treatment of mandatory mediation in England and Wales case law was considered in a co-authored paper by Nicolas Kyriakides, Professor Masood Ahmed and Yomna Zentani, discussing the importance of the new Cyprus Civil Procedure Rules and how they should not be underestimated, as these newly introduced Rules have the potential to bring about a major change to the civil justice system. Kyriakides, Ahmed and Zentani further argue that it is only with conceptual and structural changes that a transformation can result. If this transformation is achieved, it is more likely that ADR will be accepted as being essential and has the potential to play a significant role in the Cypriot civil justice system. For more information about this research, click here.
Broader justice system reforms
Mandatory mediation is part of a larger strategy to modernise Cyprus’s legal system. The government is also working on drafting a new arbitration law to further enhance ADR mechanisms. Together, these reforms aim to provide comprehensive alternatives to traditional litigation, catering to a wide range of disputes and fostering confidence in the justice system.
Significance of the reform
The introduction of mandatory mediation for disputes up to €10,000 represents a landmark achievement in Cyprus’s pursuit of an equitable and efficient justice system. By reducing systemic inefficiencies and promoting ADR methods, the government is addressing the needs of a society that demands prompt and reliable solutions to conflicts.
For individuals and businesses, this reform introduces a crucial procedural step before litigation. While it may initially require adaptation, the potential for cost savings, faster resolutions, and less adversarial outcomes is substantial.
As with any legal reform, the success of mandatory mediation will depend on effective implementation and the meaningful engagement of participants. This measure promises to not only alleviate the strain on Cyprus’s courts but also to establish a culture of collaboration and fairness in dispute resolution.
For more details, please visit our Dispute Resolution microsite or contact us at [email protected].