The introduction of the New Civil Procedure Rules in Cyprus has brought substantial changes to the litigation process, including the provision for interim payments – a legal mechanism previously unavailable in Cypriot civil litigation. Part 27 of the new Rules establishes the framework for interim payments, offering claimants the possibility to secure part of the sums claimed prior to the final determination of their case.
Definition and Scope of Interim Payments
An interim payment is a payment ordered by the court from a defendant to a claimant before the final resolution of the dispute. This mechanism is applicable to claims involving damages, debts, or other monetary amounts, excluding legal costs.
Procedural Requirements for Interim Payments
Under Rule 27.1, a claimant may apply for an interim payment only after the defendant's period for filing an acknowledgment of service has expired. Multiple applications may be submitted, provided each is properly supported and served in accordance with the Rules.
The procedure mandates:
- Service of the application at least 21 days prior to the hearing.
- Submission of supporting evidence with the application.
- Filing of any objections by the defendant, with supporting evidence, at least 7 days before the hearing.
- Submission of any reply evidence by the claimant at least 3 days before the hearing.
Conditions for Granting Interim Payments
As stipulated in Rule 27.2, the court may order an interim payment if one of the following conditions is met:
- The defendant has admitted liability for a monetary amount, regardless of any dispute regarding the exact sum.
- The claimant has obtained a judgment against the defendant for damages or a monetary sum to be assessed.
- In land possession claims, the court is satisfied that compensation for the use of the land would still be required from the defendant even if possession is ultimately awarded to them.
Prevention of Unwarranted Delays by Defendants
A crucial aspect of this new procedure is its role in preventing defendants from avoiding payment through tactical delays. Under the new Rules, a defendant who admits to owing any amount cannot evade payment by disputing the remainder of the claim and suspending payment under the pretext that the claimant must accept full repayment of the reduced amount in order to proceed. This ensures that claimants are not forced to accept a lower settlement prematurely and that admitted debts are promptly addressed, thereby preventing undue delay in the litigation process.
If an admission of liability is made, the court may order payment of the admitted amount as an interim payment, thus protecting claimants from prolonged non-payment during the litigation process.
Evidence Required for Interim Payments
Applications must be supported by evidence detailing:
- The amount sought as an interim payment.
- The matters to which the payment relates.
- An estimation of the likely final judgment amount.
- The grounds for meeting the conditions under Rule 27.2.
- In personal injury claims, particulars of special damages and anticipated future losses.
- Relevant supporting documents, including medical reports where applicable.
Judicial Discretion and Flexibility
The court retains the discretion to:
- Order interim payments as lump sums or in installments.
- Adjust or set aside interim payment orders as circumstances evolve.
- Order repayment of any excess amounts if the final judgment is lower than the interim payment made.
- Award interest on any overpaid amounts from the date of the interim payment.
Implications for Claimants
The availability of interim payments represents a significant procedural development, providing claimants with the opportunity to obtain partial financial relief during the course of litigation. This mechanism ensures that claimants are not left uncompensated due to delays, while also protecting defendants from being compelled to pay more than a reasonable proportion of the likely final judgment.
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.
