Putting the overriding objective to the test


Fourteen months ago, the new Civil Procedure Rules (CPR) were introduced to the Civil Courts of Cyprus. Applicable to all civil cases filed after the 1st of September 2023, the new CPR code marked a major milestone in the ongoing reform of the justice system.

 

Modelled on Common Law’s adversarial system, the text of the new CPR maintains the core procedural structure of civil actions while introducing new concepts such as:

  1. Mandatory application of pre-action protocols;
  2. Active case management powers for the Court;
  3. Pay-as-you-go provisions;
  4. The “overriding” or “primary” objective: a set of principles requiring “dealing with a case justly and at a proportionate cost” and placing a duty on the litigating parties to assist the Court in furthering this objective.

 

The fundamental purpose of the Rules is to enable the Courts to deal with cases fairly and in a manner that is quicker, more efficient, and cost-effective. The Cypriot Civil Courts are currently in the second year of operation under the new regime, and the effectiveness of the new CPR can be observed in both the number of new civil actions filed and a change in mentality. Based solely on the registry numbers given to the new civil actions filed in October 2024 at the District Court of Limassol, it is estimated that the total number of civil actions filed has been reduced by roughly 45%-50% on a year-to-year basis. The same observation can be made across all District Courts in the country.

 

It is unclear whether this sharp reduction in new civil action filings can be attributed exclusively to the implementation of the new CPR; some legal professionals strongly believe that the new CPR creates uncertainty due to the extensive case management powers granted to the Courts, thus causing a ‘chilling effect’ on the filing of new civil actions. However, our active engagement with personal injury and insurance claims, which constitute one of the top three categories of civil actions in Cyprus, indicates an actual change in mentality and the adoption of a new culture regarding dispute resolution. Recently, we had the opportunity to put the overriding objective and the very essence of the new CPR to the test:

 

Our firm was instructed to submit a personal injury claim to an insurance company for the victim of a serious road traffic accident (RTA). Our client, a man in his early forties and a father of two, was left partly paralyzed as a result of his severe injuries. Beyond the extreme pain and suffering he endured and the expensive medical procedures and rehabilitation sessions he had to pay for, his ability to work and provide for his family was greatly limited. Prior to the implementation of the new CPR, such complex and high-value claims would have definitely ended up in Court. Our legal team achieved what would have been unthinkable in the past: the claim was submitted to the insurance company, negotiated, and settled within a four-month period, securing a record-breaking €1.1 million in special and general damages (including damages for loss of future earnings). Not a single Court document was filed, as the entire claim was negotiated at the pre-action stage, following the exchange of the letter of claim and response letter between the parties, as specified in the relevant pre-action protocol (Type II) provided by the new CPR.

 

This example serves to prove that both legal professionals and private organizations that often find themselves engaged in legal proceedings (e.g., insurance companies, banks, debt collectors) are embracing the culture of the new CPR, actively promoting the overriding objective and the very purpose for which the new framework was introduced: disputes should be resolved quickly, justly, and at a reasonable and proportionate cost. Matters that would otherwise end up in Court, and in some extreme instances take up to 10 or 11 years to be resolved, are now being settled amicably and justly in a short period of time.

 

The introduction of the new CPR marks a significant step forward in Cyprus’s legal landscape and we can already see – and feel – their effectiveness. By fostering a culture of efficiency and cooperation, these reforms not only aim to expedite the resolution of disputes but also enhance access to justice for all citizens. As we continue to adapt to this new framework, it is crucial that the judicial authority, legal professionals and stakeholders ensure that the spirit of the new CPR is upheld for years to come.