In a notable judgment issued by the District Court of Nicosia last Monday, the Court granted a payment order in support of the enforcement of an Austrian judgment debt.

Facts

A judgment debtor initiated garnishee proceedings in Cyprus seeking to enforce an Austrian judgment debt. The judgment creditor, a Maltese online gaming provider, raised several arguments, including the claim that the judgment debtor had already pursued unsuccessful enforcement measures in both the Netherlands and Malta. The creditor also contended that any funds held in Cyprus were protected client funds, which were held for the benefit of the players and, therefore, not subject to execution.

Outcome

The District Court of Nicosia agreed with the positions of the judgment debtor and issued the payment order. Among the key points made by the Court were:

• The fact that additional enforcement proceedings had been initiated in other jurisdictions was not material to the case. As such the judgment debtor had not misled the Court by not referring to such proceedings.
• In fact, citing case law from the Supreme Court, the Court emphasized that "The enforcement of court judgments is an element directly linked to the authority of the judicial process. The credibility of justice depends on its effectiveness; otherwise, distrust in its purpose arises, leading to corresponding corrosive effects."
• Notably, the Court further concurred with the judgment debtor's argument that the burden of proof to demonstrate that the ultimate owner of the funds differed from the registered owner lay with the online gaming provider, not with the judgment debtor.

The judgment illustrates the willingness of Cypriot Courts to uphold the execution of EU judgments, thereby contributing to acquis Communautaire.

Eleftherios Economou and Ioannis Economou represented the successful party in this case.