Arbitration in CyprusUpdated on Tuesday 22nd September 2015
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Arbitration is a legal technique that helps resolving disputes without taking them in front of the Courts of Justice. The parties will direct the matter to a third individual, an arbitrator, who will make the decision based on the presented facts. Arbitration is usually employed in cases of commercial conflicts. Arbitration in Cyprus applies under the International Arbitration in Commercial Matters Law (IACM) from 1987.
Commercial arbitration laws in Cyprus
Apart from the Cypriot ICAM law, other legislations apply in cases of disputes. In cases of commercial disputes, Cyprus has signed the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of the United Nations. The New York Convention states that Cyprus must recognize and apply awards made in other signatory states, as other states must recognize and apply arbitral awards made in Cyprus.
Cyprus has also signed the following multilateral treaties:
- - The Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters;
- - The Agreement on Recovery Abroad and Maintenance;
- - The European Convention on the Recognition and Enforcement of Foreign Arbitral Awards;
- - The Agreement on the Settlement of Investment Disputes between States;
- - Cyprus has also signed bilateral investment treaties (BITs) with 23 countries, from which 16 are in force at the moment.
Domestic arbitration law in Cyprus
Domestic arbitration in Cyprus falls under the Arbitration Law and the Civil Procedure Regulations. In domestic arbitration matters there are no requirements other than an arbitration agreement that must contain as much data as possible about the naming of the arbitrators, the place where the arbitration will take place, the language, the arbitration rules and applicable laws, the cost and the procedures.
Arbitration in not possible in the following cases:
- - Spousal disputes;
- - Disputes regarding embezzlement and illegalities;
- - Criminal cases.
For more information regarding arbitration cases our law firm in Cyprus will remain at your servce.
Advantages of arbitration in Cyprus
In Cyprus arbitration is a popular form of settling disputes especially in cases of shipping and construction matters. The benefits of Cypriot arbitration are:
- - Parties can decide where and when the arbitration will take place and the language proceedings will be presented in;
- - Parties can request an expert in the industry of the dispute to arbitrate the settlement;
- - Arbitration usually takes a lot less time than disputes settled in courts of justice;
- - All procedures are confidential;
- - Arbitration will cost less than lawsuits;
- - Decisions are easy to implement, as there are almost 90 states that signed the New York Convention.