Mandatory Mediation In Civil Disputes In Cyprus

Mediation is an alternative dispute resolution process that allows parties to resolve their disputes out of court with the aid of a neutral third party. Mediation in Cyprus is a voluntary process governed by the Certain Issues on Mediation in Civil Disputes Law of 2012 (Law 159(I)/2012), which encourages but does not require parties to consider mediation as a means of resolving civil disputes. Participation is at the discretion of the parties involved, and litigation can proceed without any obligation to attempt alternative dispute resolution.

The New Civil Procedure Rules of 2023 have enhanced the significance of alternative dispute resolution (ADR) in Cyprus’ legal system by encouraging the settlement of disputes outside the courtroom. The new rules provide that a party may submit a written request to suspend legal proceedings while the parties attempt to resolve their dispute through ADR or other means.

In early 2025, the Council of Ministers in Cyprus approved an amendment bill regarding mandatory mediation. The proposed amendment aims to promote the resolution of civil disputes through mediation by requiring parties to first attempt mediation before proceeding to litigation, where the value of the dispute does not exceed €10,000. This proposed amendment has not yet been enacted and is currently under examination by Parliament.

By making mediation mandatory before filing a civil claim, the proposed legislation aims to integrate the benefits that are associated with alternative dispute resolution processes into the civil justice system. Such benefits often include a more accessible, cost-effective, quick and confidential dispute resolution mechanism. The new framework will redirect parties to mediation, particularly in the initial phase of a dispute which reflects a broader effort to ease the burden of the Courts.

Key Provisions of the Proposed Bill

As previously stated, the key provision of the amendment is that the parties involved in civil disputes up to €10,000 will be required to attend a mandatory initial mediation session. The two existing mediator registries maintained under the law will be consolidated into a single unified registry. This registry will encompass trained mediators from professional associations, including the Cyprus Bar Association. In order to be included in the registry, all mediators without exception are required to have completed a specialized forty-hour long training program, as mandated by the law. The initiating party may either contact the other party to the dispute in order to appoint a mutually agreed mediator or choose a mediator from the registry which may then be subject to the other party’s approval.

It is worth noting that if mediation fails, the parties will retain the right to proceed with Court proceedings. However, if a party fails to attend the mandatory mediation session, they will lose their right to claim legal costs in subsequent court proceedings, unless the Court decides otherwise. Therefore, if the amendment goes into effect, it is essential to obtain appropriate legal support and ensure that the procedure is followed correctly.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.