The urgent need for the immediate promotion of the mediation institution under the recently amended Legislation

Mediation is increasingly emerging as an important tool for dispute resolution, offering significant benefits for both citizens and the legal world. Specifically, in Cyprus, where the courts face serious workload issues due to the large number of cases that are yet to be adjudicated, mediation can be an effective solution. Moreover, apart from the aforementioned issues, it is clear that the ongoing effort to ease the burden on the courts is not the only direction to pursue, as, based on the current rate of new claims being filed, this need is expected to diminish in the near future. However, strategic planning and the development of a modern and effective justice delivery system, which integrates innovative practices and fully utilizes available modern technological tools, are imperative to ensure the swift and fair administration of justice.

Mediation, a method that allows the parties involved to resolve their disputes out of court with the help of an independent third party (a mediator), is one of the most effective means of dispute resolution. This process, which falls under alternative dispute resolution (ADR), not only saves time and money but also promotes the maintenance of good relationships between the parties involved. Furthermore, mediation offers greater flexibility in the solutions provided, as it can be tailored to meet the needs of the parties, while also contributing to the decongestion of the judicial system, thus allowing courts to focus on cases that must be litigated.

Another method of ADR is arbitration, with the main differentiating factor between it and mediation being the “arbitral award,” which is binding on the parties involved. Mediation, by contrast, is a non-binding process in which the parties voluntarily participate to seek a resolution to their dispute through an agreement. Mediation also allows the parties, to some extent, to retain greater control over the process and the final decision, while arbitration, by default, is a more formal process. Furthermore, mediation, like arbitration as a concept, needs to be firmly established in the public’s perception as a reliable and effective alternative method for dispute resolution. The wider acceptance and implementation of these methods are a fundamental prerequisite for enhancing and serving the interests of justice.

Recently, a proposed amendment to the “Law on Certain Mediation Issues in Civil Disputes of 2012 (Law 159(I)2012)” (the “Law”), which governs mediation, was passed to provide for the resolution of financial disputes through mediation, making participation in mediation mandatory for financial and commercial disputes up to €10,000 before proceeding with litigation of the dispute (the “Amendment”). The Amendment has passed technical scrutiny and will be presented in the coming months before the Parliament’s Lawyers Committee for discussion. According to Article 13 of the Law, lawyers are required to inform their clients in writing of the need to attempt the resolution of their dispute through mediation when they have civil or commercial disputes up to €10,000 before them prior to litigation. At the same time, they must explain the obligation to attend an initial mediation session and the procedure for this, as provided by Article 15A of the aforementioned Law. The selection of mediators will be made from the registry maintained by the Ministry of Justice. If a party fails to attend the mediation session, they lose the right to claim legal costs in any later court proceedings. The Amendment also provides for the creation of a mediator registry regulated by the Ministry of Justice, with strict training and certification criteria, thus ensuring the quality of services. Parties seeking to proceed with mediation will have access to the aforementioned registry and can choose a mediator.

The adoption of mediation benefits judicial efficiency, the legal community itself, and the layperson. Lawyers can benefit from this process by taking on new roles and offering high-value services, whereas the layperson may benefit from a faster and more effective administration of justice. By promoting this practice, trust in the justice system is strengthened, as the resolution of disputes becomes more transparent and impartial.

Mediation is not just a process – it is an opportunity for a more flexible, fair, and efficient justice system. Its integration into the legal community of Cyprus is a decisive step toward reducing bureaucracy, improving access to justice, and enhancing social cohesion. Now is the time to embrace this reform and contribute to shaping a more modern and just legal environment for all.

Nicolas K. Theodorides, Senior Legal Advisor I, KPMG Law, Theodorides, Georgiou, Iacovou & CO LLC