Enforcement Of Foreign Judgments Laws And Regulations Cyprus 2024 For Cyprus

1.1 Please set out the various regimes applicable to recognising and enforcing judgments in your jurisdiction and the names of the countries to which such special regimes apply.

2.1 Absent any applicable special regime, what is the legal framework under which a foreign judgment would be recognised and enforced in your jurisdiction?

The rules of common law govern the recognition and enforcement of judgments from countries not covered by the regimes outlined in question 1.1.

Hence, when no other course of action is available pursuant to any multilateral or bilateral treaty, EU regulation or domestic statute, a foreign judgment may be sought via a common law action.

This regime is based on common law precedents and is not codified in a statute. Therefore, its application is not absolute and must be approached on a case-by-case basis. Cypriot courts will assume jurisdiction where the judgment debtor's place of residency is Cyprus and/or they retain assets in Cyprus.

2.2 What constitutes a 'judgment' capable of recognition and enforcement in your jurisdiction?

Art. 3 of Law 121(I)/2000 stipulates that a "judgment of a foreign court" is a decision of a court, arbitral tribunal or body of a foreign country with which the Republic of Cyprus has concluded or is bound by a treaty on mutual recognition and enforcement of judicial and arbitral awards, and which is enforceable in the country where it was issued. Furthermore, the term "decision" includes any enforceable interim decision or decree.

Additionally, Art. 2 (1) of Cap. 10 provides that a "judgment" designates a judgment or order given or made by a court in any civil proceedings, or a judgment or order given or made by a court in any criminal proceedings for the payment of a sum of money in respect of compensation or damages to any injured party.

2.3 What requirements (in form and substance) must a foreign judgment satisfy in order to be recognised and enforceable in your jurisdiction?

When a foreign judgment can only be enforced by a common law action, the substantive requirements that must be satisfied in order for a Cypriot court to make a declaration of enforceability are hereinafter laid down in question 2.7 below. In form, the foreign judgment must generally satisfy the conditions necessary to establish its authenticity under the law of the foreign forum through which it was granted.

2.4 What (if any) connection to the jurisdiction is required for your courts to accept jurisdiction for recognition and enforcement of a foreign judgment?

Pursuant to Art. 2 of Law 121(1)/2000, Cypriot courts will assume jurisdiction to adjudicate applications for the recognition of a foreign judgment when at least one of the parties is resident within the Cypriot jurisdiction.

It was established in the Supreme Court of Cyprus case VTB Bank (Open Joint-Stock Company) v Taruta Sergey Alekseyevich, General Application No. 378/14, judgment dated 12 June 2020, in relation to the recognition and enforcement of arbitral awards pursuant to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (New York Convention), that Cypriot courts will assume jurisdiction when the party against whom the arbitral award shall be enforced is a non-
Cypriot resident but retains assets within the Republic of Cyprus. Although it was held obiter in the above case that in order for the Cypriot courts to have the power to issue a judgment for the recognition and enforcement of a foreign judgment in Cyprus it is necessary for the respondent, or at least the applicant, to be resident in Cyprus, the judgment leaves room for argument; thus it remains to be seen how this will be interpreted by the district courts.

In relation to the common law regime applicable in the absence of a bilateral and/or multilateral treaty, the courts have jurisdiction to decide on questions of enforcement without the obligation to establish a degree of connection with the Cypriot forum. Nevertheless, the Cypriot courts have discretion to dismiss a civil action for forum non conveniens where there is no real connection to the jurisdiction, but usually only in exceptional circumstances.

2.5 Is there a difference between recognition and enforcement of judgments? If so, what are the legal effects of recognition and enforcement respectively?

Under common law, enforcement follows recognition. In order for a foreign judgment to be enforced in Cyprus, it must be primarily recognised, since it cannot be executed outside the medium of the Cypriot courts. The same applies for the recognition and enforcement of English judgments in Cyprus pursuant to the provisions of Cap.10 (see also question 3.2).

2.6 Briefly explain the procedure for recognising and enforcing a foreign judgment in your jurisdiction.

When no other course of action is available pursuant to any multilateral or bilateral treaty, EU regulation or domestic statute (for these, please see question 3.3), enforcement of a foreign judgment may be sought via a common law action through the procedure given below.

The claimant may issue fresh proceedings before the Cypriot courts by filing a writ of summons (usually specifically endorsed), relying on the facts which created the cause of action in which the foreign judgment was given and requesting relief identical to the that provided for by the foreign judgment. Thereafter, the claimant may proceed with a summons application for summary judgment under Order 18 of the Cyprus Civil Procedure Rules, on the ground that the defendant has no reasonable prospect of defending the claim.

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Originally published in ICLG.com