The Council of Ministers in Cyprus recently approved an amendment bill introducing a mandatory initial mediation session for civil disputes valued at up to €10,000. This groundbreaking proposal, which will soon be presented to Parliament, aims to reduce the burden on the justice system, promote a faster resolution of disputes, and encourage a culture of amicable settlement.

According to the Minister of Justice, making mediation a compulsory first step could significantly decrease the number of claims being filed, thereby shortening court backlogs and saving both time and money. Many parties with smaller claims often hesitate to initiate legal proceedings due to associated costs; as a result, mandatory mediation may offer an accessible and practical alternative.

While there is an ongoing discussion about potential constitutional considerations -specifically whether the obligation to undergo mediation infringes on the right of access to the courts as enshrined in Article 6 of the European Convention on Human Rights - stakeholders largely view this measure as a positive development. The Cyprus Bar Association has welcomed the initiative, emphasizing that mediation, like arbitration, must become an integral part of the public’s mindset to ensure the efficient administration of justice. The Association pledges its continued support for the promotion of these alternative methods.

Notably, by requiring a mediation session for disputes up to €10,000, the proposed legislation is poised to relieve some of the pressure on the judicial system. Mediation sessions can often be arranged sooner than a court hearing, helping resolve issues more quickly and efficiently. Moreover, the mediation process tends to preserve relationships between parties, making it less adversarial than traditional litigation. At the same time, there are questions about whether making mediation obligatory could present obstacles for certain cases particularly if an agreement cannot be reached and the parties must still proceed to court. Some also argue that compelling mediation might be viewed as restricting direct access to the courts.

Overall, this legislative proposal represents a meaningful move toward a more efficient justice system in Cyprus. If implemented successfully, mandatory mediation will likely reduce judicial caseloads, foster a culture of Alternative Dispute Resolution, and benefit litigants by saving both time and resources. We at Economou & Co LLC will continue to follow legislative developments closely and provide updates on the final form of the bill once it is enacted.

Article by our partner Ioannis Economou, Board Member of Cyprus Arbitration and Mediation Centre.