The Council of Ministers approved during its session on January 3, 2025, a bill amending the Law on Certain Matters of Mediation in Civil Disputes. The bill aims to enhance the use of alternative dispute resolution methods (ADR) in civil cases, with emphasis on mediation practices.
Mandatory Mediation
The proposed regulations require that the initial mediation session is mandatory in cases where the value of the dispute does not exceed €10,000.
Sanction
The obligation is further reinforced by imposing sanctions where a party fails to participate in the initial mediation session. Sanctions include the imposition of legal costs. A lawsuit must be accompanied by the minutes of the mandatory initial mediation session when filed in court for a dispute valued up to €10,000, it. Otherwise, the Court has the right to dismiss the lawsuit.
Unified Register of Mediators and Certification
The bill provides for the creation of a unified register of mediators, which will include professionals from the Technical Chamber of Cyprus (ETEK), the Cyprus Chamber of Commerce and Industry (CCCI), and the Cyprus Bar Association. Additionally, all mediators are required to complete training.
Impact on the Legal System
The regulation aims to decongest the courts from the increased workload, while at the same time, supports the primary objective of the New Rules of Civil Procedure of 2023, which promotes fair case management at a proportionate cost.
Exceptions and Other Provisions
The mandatory initial mediation session does not apply to actions filed for or against the Republic and its implementation will suspend the limitation period of disputes. Additionally, it is stipulated that lawyers are obligated to inform their clients about the possibility of mediation for resolving their disputes, and more specifically, they must inform their clients about the obligation to conduct an initial mediation session where required by law.
The new regulations discourage recourse to time-consuming and costly judicial procedures for minor disputes, while at the same time, they encourage the development of a culture of out-of-court dispute resolution.
How we can help
Our certified and accredited mediators provide comprehensive legal support and guidance throughout the mediation process, ensuring that our clients are fully aware of their rights and options for an efficient and fair dispute resolution.
Authors: Michalis Antoniou, Lawyer & Vasiliki Christoforou, Senior Lawyer
