Enforcement of Foreign Judgments Comparative Guide

1 Legal and judicial framework

1.1 Which legislative and regulatory provisions govern the recognition and enforcement of foreign judgments in your jurisdiction?

The legislative and regulatory provisions governing the recognition and enforcement of foreign judgments in Cyprus are mainly a combination of various instruments, such as bilateral treaties, domestic legislation and EU regulations.

In addition, the Foreign Judgments (Reciprocal Enforcement) Law (Cap 10), modelled on the corresponding English legislation (the Foreign Judgments (Reciprocal Enforcement) Act 1993, applies to judgments obtained in the courts of the United Kingdom and of its dominions.

In situations where no bilateral treaty exists between Cyprus and the country in which a foreign judgment originated, the Cypriot courts, by virtue of Section 29(1)(c) of the Courts of Justice Law (14/60), apply the common law principles applicable in relation to the recognition and enforcement of these foreign judgments.

1.2 Which bilateral and multilateral instruments on the recognition and enforcement of foreign judgments have effect in your jurisdiction?

Cyprus has concluded bilateral agreements with certain non-EU countries governing the mutual recognition and enforcement of judgments. Examples of such agreements include:

• the Agreement between the Republic of Cyprus and the Syrian Arab Republic on Legal Assistance in Civil and Criminal Matters (L160/86, L13(III)/97);
• the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters (L172/86). This treaty is still applicable with regard to Russia, Georgia and Belarus;
• the Agreement between the Republic of Cyprus and the Arab Republic of Egypt on Judicial and Legal Assistance in Civil and Criminal Matters (L32(III)/92, L14(III)/96);
• the Treaty between the Republic of Cyprus and the People's Republic of China on Judicial Assistance in Civil, Commercial and Criminal Matters (L19(III)/95);
• the Agreement between the Republic of Cyprus and the Great Socialist People's Libyan Arab Jamahiriya on Legal Assistance in Civil, Commercial and Criminal Matters (L32(III)/2005);
• the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters (L8(III)/2005); and
• the Agreement for Cooperation in the Legal Field between the Government of the Republic of Cyprus and the Government of State of Qatar (L16(III)/2019).

The process of recognising and enforcing judgments between European member states has been streamlined since the implementation of EU Regulation 1215/2012. This regulation is designed to manage jurisdictional issues and facilitate the recognition and enforcement of judgments related to civil and commercial matters across the European Union and plays a pivotal role in promoting the free circulation of judgments throughout the European Union by introducing harmonised rules. It simplifies the process and eliminates the need for any additional declaration of enforceability (exequatur). Importantly, with the regulation in place, a judgment passed in one EU member state is almost automatically recognised in all other EU member states. This effectively removes any significant administrative hurdles, leading to smoother and more efficient cross-border administration of justice.

Furthermore, the European payment order (EPO) is a legal mechanism established by EU Regulation 1896/2006. It is designed to facilitate and expedite the process of collecting uncontested monetary claims in civil and commercial matters across EU member states, with the exception of Denmark. One of the key features of the EPO is its automatic recognition in other EU member states. An EPO issued by a court in one member state is automatically recognised and directly enforceable in any other member state without the need for a declaration of enforceability. The EPO procedure is different from the European small claims procedure, which is designed to simplify and speed up litigation concerning small claims in civil and commercial matters.

1.3 Which courts have jurisdiction to hear applications for the recognition and enforcement of foreign judgments?

According to the Foreign Courts Judgments (Recognition, Registration and Enforcement) Law of 2000 (121(I)/2000) which sets out the procedure to be followed by a party wishing to have a foreign judgment recognised, registered and enforced in Cyprus, an application requesting recognition, registration or enforcement of the foreign judgment must be filed in:

• the district court of the district in which the respondent resides; or
• in the case of disputes concerning family relationships, the family tribunal of the district in which the respondent resides.

If the defendant is domiciled abroad or if there was no opposing party to the proceedings in which the judgment was given, the application should be filed in the district court of the district in which the applicant resides.

According to the Foreign Judgments (Reciprocal Enforcement) Law, a judgment creditor may apply to the district court of the district in which the judgment debtor resides or in which any property to which a judgment relates is situate. Notably, 'judgment' means:

• a judgment or order given or made by a court in any civil proceedings; or
• a judgment or order given or made by a court in any criminal proceedings for the payment of a sum of money in respect of compensation or damages to any injured party.

It is imperative to thoroughly assess each case individually, taking into account the provisions of relevant bilateral and multilateral agreements, as they may impose additional procedural obligations. For example, Article 27 of the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters should be carefully considered. In particular, based on that provision, it is only when the person applying for enforcement of foreign judgment has its permanent or temporary residence (location) in the territory of Cyprus that the application may be submitted directly to the competent court of Cyprus. This was recently confirmed by the Supreme Court of Cyprus in VTB Bank (Open Joint Stock Company) v Alekseyevich (Civil Appeal 206/2014, 12 June 2020), where it was stated that a Russian bank cannot directly apply to the Cyprus court to recognise and enforce a judgment issued in Russia against a Russian citizen. This means that in such case a Russian claimant must file an application for enforcement of a Russian judgment with a Russian court. Thereinafter, the application will be presented to the competent Cyprus court via the competent authorities. In Cyprus, this authority is the Ministry of Justice and Public Order.

2 Requirements for enforceability

2.1 What types of judgments may be recognised and enforced in your jurisdiction? Are any types of judgments specifically precluded from enforcement?

To gain a comprehensive understanding of the applicable legal framework, it is crucial to consider the various rules that apply. This will be elucidated by reference to judgments issued by the courts of EU member states, the United Kingdom, Russia and Ukraine.

As discussed above, judgments issued by the courts of EU member states are recognised and enforced pursuant to the provisions of EU Regulation 1215/2012. Article 2 of the regulation defines the judgments which can be recognised and enforced as follows: "Any judgment given by a court or tribunal of an EU member state, whatever the judgment may be called, including a decree, order, decision or writ of execution, as well as the determination of costs or expenses by an officer of the court."

The term 'judgment' includes provisional – including protective – measures; but it does not include provisional – including protective – measures which are ordered by such a court or tribunal without the defendant being summoned to appear, unless the judgment containing the measure is served on the defendant prior to enforcement.

In addition, the regulation does not extend to:

• revenue, customs or administrative matters; or
• the liability of the state for acts and omissions in the exercise of state authority.

It also does not apply to matters involving:

• the status or legal capacity of natural persons, rights in property arising from a matrimonial relationship or out of a relationship deemed by the law applicable to such relationship to have comparable effects to marriage;
• bankruptcy proceedings relating to the winding-up of insolvent companies or other legal persons, judicial arrangements, compositions and analogous proceedings;
• social security;
• arbitration;
• maintenance obligations arising from a family relationship, parentage, marriage or affinity; or
• wills and succession, including maintenance obligations arising by reason of death.

Judgments issued by the courts of the United Kingdom are recognised and enforced pursuant to the Foreign Judgments (Reciprocal Enforcement) Law. According to the act, the term 'judgment' means a judgment or order given or made by a court in any civil proceedings, or a judgment or order given or made by a court in any criminal proceedings for the payment of a sum of money in respect of compensation or damages to any injured party. In addition, the 'judgment' must be final and conclusive and amenable to execution in the country of origin. That said, a judgment will be deemed to be final and conclusive notwithstanding that an appeal may be pending against it, or that it may still be subject to appeal.

Judgments issued by courts of Russia, Georgia and Belarus are recognised and enforced pursuant to the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters (L172/86). According to Article 23 of the treaty, judgments amenable to enforcement are:

• judgments rendered in civil matters and amicable settlements approved by court;
• judgments for the payment of legal costs; and
• judgments in criminal matters concerning the payment of damages and other civil law claims.

In addition, the following restrictions apply:

• The judgment must be final and enforceable under the law of the contracting state in the territory of which it was given;
• Where a party failed to appear, that party must have been duly notified in sufficient time under the law of the contracting state in the territory of which the judgment was given;
• The proceeding must not fall within the exclusive competence of an authority of the contracting party in the territory of which the judgment is to be recognised and enforced;
• No final judgment must have been rendered previously in relation to the same subject matter between the same parties in the territory of the contracting party where the judgment is to be recognised and enforced; and
• Proceedings between the same parties on the same subject matter must not be pending before a judicial authority of the requested contracting party and the proceedings must have been the first to be instituted.

Lastly, judgments issued by the courts of Ukraine are recognised and enforced pursuant to the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters (L8(III)/2005). Such judgments include:

• decisions of courts in civil matters (including family matters and amicable settlements approved by court); and
• decisions of courts in criminal matters concerning damages.

According to Article 21 of the agreement, such decisions will be recognised and enforced if they meet the following conditions:

• The decision is final and enforceable by means of execution under the laws of the contracting party in the territory of which it was given;
• Where the decision was issued in the absence of the defendant, it was duly notified of the institution of proceedings and of the place, date and time of the hearing in accordance with the law of the contracting party in the territory of which the decision was given;
• A final decision has not already been issued in relation to the same subject matter between the same parties by a court of the requested contracting party;
• Proceedings between the same parties on the same subject matter have not been instituted before a court of the state of the requested contracting party before the proceedings in which the decision in question was issued;
• Recognition or enforcement of the decision would not be contrary to the public order of the requested contracting party;
• The decision or its effects is not contrary to the fundamental principles or laws of the state of the requested contracting party; and
• The decision was not issued by a court without jurisdiction (the principles upon which jurisdiction is decided for the purpose of the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters are stipulated in Article 17).

2.2 Must a foreign judgment be final and binding before it can be enforced?

To develop a comprehensive understanding of the applicable legal framework, it is essential to acknowledge the existence of distinct rules that are contingent upon the country of origin of a judgment. According to EU Regulation 1215/2012 (applicable to judgments issued by a court or tribunal of an EU member state), for the purposes of enforcement, a judgment need not in principle be final. However, a judgment must be binding and enforceable in the member state of origin before it can be enforced in another member state.

According to the Foreign Judgments (Reciprocal Enforcement) Law (applicable to judgments issued by UK courts), a judgment must be final and conclusive. This requirement should be interpreted alongside Article 3(3) of the act, which states that a judgment will be final and conclusive notwithstanding that:

• an appeal may be pending against it; or
• it may still be subject to appeal before the courts of the country of the original court.

The judgment must also be amenable to enforcement by execution in the country of the original court.

Lastly, judgments that are to be recognised based on the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters (L172/86) or the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters (L8(III)/2005) must be final and enforceable under the law of the contracting party in the territory of which such judgments were given.

2.3 Is a foreign judgment enforceable if it is subject to appeal in the foreign jurisdiction?

Generally, yes. That said, the Cypriot courts have the discretion, pursuant to Article 38(a) of EU Regulation 1215/2012 (applicable to judgments issued by a court or tribunal of an EU member state), to suspend proceedings for the recognition and enforcement of a foreign judgment, in whole or in part, if the judgment is challenged in the member state of origin.

In addition, the Foreign Judgments (Reciprocal Enforcement) Law (applicable to judgments issued by the UK courts) expressly prescribes that a judgment will be deemed final and conclusive notwithstanding that:

• an appeal may be pending against it; or
• it may still be subject to appeal in the courts of the country of the original court.

2.4 What is the limitation period for making an application for recognition and enforcement?

EU Regulation 1215/2012 does not specify a limitation period within which a party must proceed with recognition of a judgment in a member state.

Under Section 4(1) of the Foreign Judgments (Reciprocal Enforcement) Law, a judgment creditor may apply to recognise a judgment at any time within six years of:

• the date of the judgment; or
• where there have been proceedings by way of appeal against the judgment, the date of the last judgment issued in those proceedings.

If a foreign judgment cannot be recognised and enforced under a bilateral treaty, the Foreign Judgments (Reciprocal Enforcement) Law or the EU Regulation (EU) no. 1215/2012because it falls outside the ambit of these instruments, it may be enforced under the common law. The limitation period to bring an action for recognition is 15 years from the date on which the judgment becomes final (Section 10 of the Limitation of Actionable Rights Law (L66(I)/2012)).

Furthermore, it could be argued that as a foreign judgment becomes a Cyprus judgment once it is recognised in Cyprus, any potential enforcement measures must be taken within 15 years of its registration in Cyprus.

3 Recognition and enforcement process

3.1 Is recognition of a foreign judgment a separate process from enforcement and does it have separate legal effects?

The recognition and enforcement of foreign judgments are distinct legal procedures with separate implications. Recognition involves the formal acknowledgement by a court of the validity and conclusiveness of a foreign judgment. This process requires a thorough assessment of various elements, including:

• the foreign court's proper jurisdiction;
• the due service of the defendant; and
• the absence of fraud in obtaining the judgment.

The legal consequence of recognition is that the foreign judgment is deemed equivalent to a judgment rendered within the recognising jurisdiction.

On the other hand, enforcement is the actual execution of the recognised foreign judgment within the domestic jurisdiction. This is possible only subsequent to recognition and typically necessitates a separate judicial proceeding. While these processes are independent, they can occasionally be amalgamated into a single proceeding.

3.2 What is the formal process for recognition and enforcement?

The formal process for recognition and enforcement depends on the statute which applies in the individual case. In other words, the process varies according to which instrument or statute is applicable.

EU Regulation 1215/2012: Recognition and enforcement of an EU judgment requires no special procedure (Article 36) or declaration of enforceability (Article 39). A judgment creditor may register an EU judgment in a straightforward manner by addressing a letter to the registrar of the competent district court to register the judgment in the register of EU judgments kept by the registrar. Once registered, the judgment may be enforced as if it was issued by a Cyprus court.

Cyprus statutory regime: The recognition and enforcement of foreign judgments issued by any court or tribunal of a foreign country with which Cyprus has concluded a bilateral treaty (and which are not judgments of an EU member state court) are governed by the Decisions of Foreign Courts (Recognition, Registration and Enforcement) Law (L121(I)/2000). The process requires an application by summons, supported by an affidavit:

• exhibiting a duly certified true copy of the foreign judgment;
• exhibiting a certified translation of the foreign judgment in Greek; and
• providing a legal opinion by an expert confirming the foreign judgment's finality and enforceability in its country of origin.

The application which is filed by the judgment creditor as an applicant, with the judgment debtor as a respondent, must be fixed for hearing within four weeks of filing and must soon thereafter be served on the respondent, which may choose to file a written opposition on specific grounds.

Foreign Judgments (Reciprocal Enforcement) Law: The procedure for recognition under the Foreign Judgments (Reciprocal Enforcement) Law is governed by Section 4 thereof, as well as by the Foreign Judgments (Reciprocal Enforcement) Procedural Regulation (1062/1925), which governs procedural matters.

The judgment creditor may file an application in the district court within:

• six years of the date of the judgment; or
• where there have been proceedings by way of appeal against the judgment, six years of the date of the last judgment issued in those proceedings.

This recognition application may be made on an ex parte basis and must be accompanied by an affidavit:

• exhibiting a certified copy of the judgment issued by the original court and authenticated by its seal and a Greek translation of the judgment (Rule 3(1)(a) of the regulation); and
• stating, to the best of the information and belief of the deponent:
• • that the applicant is entitled to enforce the judgment (Rule 3(1)(b)(i) of the regulation);
  • as the case may require, either that as of the date of the application the judgment has not been satisfied or, if the judgment has been satisfied in part, the amount in respect of which it remains unsatisfied (Rule 3(1)(b)(ii) of the regulation);
  • that, at the date of the application, the judgment can be enforced by execution in the country of the original court (Rule 3(1)(b)(iii) of the regulation);
  • that if the judgment were registered, the registration would not be, or be liable to be, set aside under Section 6 of the Foreign Judgments (Reciprocal Enforcement) Law (Rule 3(1)(b)(iv) of the regulation); and
  • the amount of the interest, if any, which under the law of the country of the original court has become due under the judgment up to the time of registration (Rule 3(1)(c) of the regulation).

Enforcement at common law: If a foreign judgment cannot be recognised and enforced under a bilateral treaty, the Foreign Judgments (Reciprocal Enforcement) Law or the Foreign Judgments (Reciprocal Enforcement) Procedural Regulation because it falls outside the ambit of these instruments, it may be enforced under common law. Under common law, the foreign judgment will not be enforced directly by execution, but will be regarded, for procedural purposes, as creating a debt between the parties to it, with the debtor's liability arising on an implied promise to pay the amount of the foreign judgment. The following requirements must be met:

• The judgment must be for a definite sum, limited to enforceable monetary judgments;
• The judgment must be final and conclusive, and not subject to alteration by the issuing court, except where an appeal stays the judgment; and
• The foreign court must have had jurisdiction under Cypriot conflict of law rules to issue the judgment.

At common law, an action on the foreign judgment must be filed for the amount of the judgment debt and costs, and summary judgment may be given in favour of the claimant.

3.3 What documents are required in support of an application for recognition and enforcement?

See question 3.2.

3.4 What fees are payable for recognition and enforcement?

The applicant for recognition and enforcement of a foreign judgment under the statute must pay the standard court fees (court stamps), which amount to:

• €53 for the application;
• €15 for the affidavit; and
• €1 per document exhibited on the affidavit.

For recognition and enforcement of a foreign judgment under common law for which a fresh action must be filed, the court fees vary depending on:

• the amount awarded under the foreign judgment; and
• the value of the subject matter of the foreign judgment.

These figures are calculated pursuant to regulations issued under the Civil Procedure Rules.

3.5 Is the applicant required to provide security for costs?

Security for costs is regulated by Order 60 of the Civil Procedure Rules, which provides that security for costs which are expected to be incurred by the defendant may be ordered by the court at any stage of the proceedings, provided that the claimant/applicant is ordinarily resident outside Cyprus or any other EU member state. That said, a security for costs order will be made only upon an application to the court by the defendant. Some bilateral treaties (eg, between Russia and Cyprus and between Ukraine and Cyprus) preclude the ordering of security for costs on the grounds that a person is a foreign citizen and/or does not have its domicile or residence in Cyprus; in such case, there is no obligation to provide security for costs.

3.6 How long does it usually take to obtain a declaration of enforceability?

For EU judgments covered by the EU Regulation (EU) no. 1215/2012, there is no need to obtain a declaration of enforceability.

For recognition and enforcement under the Cyprus statutory regime, the timeframe for obtaining a declaration of enforceability may range from eight to 12 months from the date of filing.

For the enforcement of foreign judgments at common law, the timeframe for adjudication may range from two to three years from the date of filing.

3.7 Can the applicant seek injunctive relief while the process is ongoing?

In the course of proceedings for the recognition and enforcement of foreign judgments, whether under the statutory regime or at common law, the judgment creditor has the option of seeking the following interim relief on an urgent basis (subject to fulfilling the relevant conditions set out in Section 32 of the Courts of Justice Law (14/60) and Section 9 of the Civil Procedure Law, Cap 6):

• a freezing injunction in relation to assets held by the judgment debtor to prevent them from being dissipated while the recognition proceedings are pending;
• a Chabra injunction in relation to assets beneficially owned by the judgment debtor but held in the name of third parties, ensuring the preservation of such assets;
• the appointment of an interim receiver, aimed at preserving the assets blocked by an injunction and safeguarding them during the proceedings; and
• Norwich Pharmacal orders and gagging orders compelling any third parties – such as banks or service providers – to disclose relevant information and documents to aid the claimant in tracing assets and identifying other wrongdoers. A gagging order prevents the respondent from informing any third party (including wrongdoers) of the pendency of the proceedings, in order to enable the claimant to get the information and documents that it requires.

4 Defences

4.1 On what grounds can the defendant challenge recognition and enforcement of a foreign judgment?

The grounds on which the recognition and enforcement of a foreign judgment can be challenged are limited.

In accordance with EU Regulation 1215/2012, the recognition and enforcement of a judgment issued by a court of an EU member state may be challenged on any of the following grounds (this list is not exhaustive):

• Recognition would be manifestly contrary to public policy in the member state addressed;
• The judgment was given in default of appearance, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable it to arrange for its defence, unless the defendant failed to commence proceedings to challenge the judgment when it was possible for it to do so;
• The judgment is irreconcilable with a judgment given between the same parties in the member state addressed; or
• The judgment is irreconcilable with an earlier judgment given in another member state or in a third state involving the same cause of action and between the same parties, provided that the earlier judgment fulfils the conditions necessary for its recognition in the member state addressed.

In addition, the grounds for refusal or of suspension of enforcement under the law of the member state addressed will apply insofar as they are not incompatible with the grounds referred to in Article 45 of EU Regulation 1215/2012.

As regards judgments issued by UK courts, the Foreign Judgments (Reciprocal Enforcement) Law provides that the only discretionary factor which may lead to the Cypriot court to decline to recognise a judgment is if:

• the matter in dispute in the judgment whose recognition is sought was previously decided by another court with jurisdiction in the matter; and
• the matter in dispute thus was finally and conclusively decided by the other court before the issuance of the judgment whose recognition is sought in Cyprus.

Moreover, the registration will be set aside if:

• the judgment was registered in contravention of the Foreign Judgments (Reciprocal Enforcement) Law;
• the courts of the country of the original court had no jurisdiction;
• the judgment debtor did not (notwithstanding that process may have been duly served on it in accordance with the law of the country of the original court) receive notice to enable it to defend the proceedings and did not appear;
• the judgment was obtained by fraud;
• enforcement of the judgment would be contrary to public policy in the country of the registering court; or
• the rights under the judgment are not vested in the person by whom the application for registration was made.

As regards judgments issued by Ukrainian courts, Article 21 of the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters (L8(III)/2005) provides that a judgment will be recognised and enforced only if (the following list is not exhaustive):

• in the case of a judgment given in its absence, the defendant was duly notified of the institution of proceedings and of the place, date and time of the hearing in accordance with the law of the contracting party in the territory in which the decision was given;
• no judgment, which has become final, was previously given on the same subject matter between the same parties by a court of the requested contracting party;
• proceedings between the same parties on the same subject matter were not instituted before a court of the requested contracting party before the proceedings in which the decision in question was given;
• recognition or enforcement of the judgment would not be contrary to the public order of the requested contracting party;
• the judgment or its effects is not contrary to the fundamental principles and any law of the requested contracting party; and
• the judgment was not issued by a court without jurisdiction (the principles upon which jurisdiction is decided for the purpose of the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters are stipulated in Article 17).

As discussed in question 2.1, the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters (L172/86) provides for similar qualifications (see Article 24). In addition, Article 29 of the treaty stipulates that a judgment debtor may object to the enforcement of a judgment before the competent court of the contracting party in whose territory the judgment is sought to be enforced upon grounds which are admissible under the law of the contracting party whose authority rendered the judgment.

Under common law, there are no discretionary grounds under which the court may decline to recognise a judgment.

4.2 What is the limitation period for filing a challenge?

Generally, there is no limitation period for filing a challenge to an application for recognition and enforcement.

However:

• Section 5(1)(c) of Law 121(I)/2000 provides that an application for recognition and enforcement of a foreign judgment must be served on the respondent without delay; and
• Section 5(1)(d) stipulates that the respondent may, if it so wishes, file a written opposition to the application accompanied by an affidavit at least two days before the case is fixed for hearing.

4.3 Can the defendant seek injunctive relief to prevent enforcement while a challenge is pending?

As regards judgments issued by courts of other EU member states, the court may suspend the proceedings, in whole or in part, if:

• the judgment is challenged in the member state of origin; or
• an application has been submitted for a decision that:
• • there are no grounds for refusal of recognition as referred to in Article 45 of EU Regulation 1215/2012; or
  • recognition should be refused on the basis of one of those grounds.

In addition, in the event of an application for refusal of enforcement of a judgment, the court in the member state addressed may, on the application of the party against which enforcement is sought, suspend the enforcement proceedings either wholly or partially. In addition, the competent authority in the member state addressed will, on the application of the party against which enforcement is sought, suspend the enforcement proceedings where the enforceability of the judgment is suspended in the member state of origin.

5 Court analysis and decision

5.1 Will the court review service of process in the initial proceedings?

As regards judgments issued by the courts of other EU member states, EU Regulation 1215/2012 explicitly provides that if a judgment given in another member state orders a provisional – including a protective – measure, the applicant will need to provide proof of service of the judgment to the competent enforcement authority at the place where the measure was ordered without the defendant being summoned to appear.

In addition, as regards judgments issued by UK courts, registration of the judgment will be set aside if the judgment debtor did not receive notice to enable it to defend the proceedings.

Likewise, with regard to judgments to be recognised in accordance with the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters (L8(III)/2005) and the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters (L172/86), the respective applicable treaties expressly provide that if the judgment was granted in the absence of the defendant, the court must deduce that the defendant was duly notified of the institution of proceedings and of the place, date and time of the hearing in accordance with the law of the contracting party in the territory of which the judgment was given.

5.2 Will the court review the jurisdiction of the foreign court in the initial proceedings?

As regards judgments issued by the courts of EU member states, the jurisdiction of the court of origin may not be reviewed (without prejudice to Article 45(1)(e) of EU Regulation 1215/2012).

In contrast, with regard to judgments granted by UK courts, Section 6(2) of the Foreign Judgments (Reciprocal Enforcement) Law sets out the circumstances under which the courts of the country of the original court will have jurisdiction; and if the courts of the country of the original court had no jurisdiction, the registration will be set aside.

Similarly, with regard to judgments to be recognised on the basis of the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters (L8(III)/2005) or the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters (L172/86), such judgments will not be recognised and enforced if they are issued by a court without jurisdiction.

5.3 Will the court review the foreign judgment for compliance with applicable law and public policy?

Only to the extent that this is discussed in question 4.1.

5.4 Will the court review the merits of the foreign judgment?

No. In fact, Article 52 of EU Regulation 1215/2012 contains a specific mandate that "under no circumstances may a judgment given in a Member State be reviewed as to its substance in the Member State addressed".

Likewise, the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters (L8(III)/2005) expressly provides that the court will confine itself to the requirements discussed in question 4.1.

5.5 How will the court proceed if the foreign judgment conflicts with a previous judgment in relation to the same dispute between the same parties?

Please see question 4.1.

5.6 Are there any other grounds on which the court may refuse to recognise and enforce the foreign judgment?

As long as the procedural requirements are met, the grounds upon which the recognition and enforcement of a foreign judgment can be challenged are quite limited. In essence, they revolve around notions of:

• public policy;
• natural justice; and
• irreconcilability with earlier judgments.

5.7 Is partial recognition and enforcement possible?

In theory, the courts retain discretion to proceed with partial recognition and enforcement as they think fit, in accordance with the pertinent circumstances of the case.

For instance, the Foreign Judgments (Reciprocal Enforcement) Law expressly provides for partial recognition if, at the date of the application for registration:

• the judgment has been partly satisfied – in such case, the judgment will be registered only in respect of the balance remaining payable at that date; or
• it appears to the court that the judgment is in respect of different matters and that some, but not all, provisions of the judgment are such that had those provisions been contained in separate judgments, they could properly have been registered – in such case, the judgment may be registered in respect of the aforesaid provisions, but not in respect of any other provisions contained therein.

5.8 How will the court deal with cost issues (eg, interest, court costs, currency issues)?

The Foreign Judgments (Reciprocal Enforcement) Law expressly prescribes that the sum for which a judgment is registered will bear interest as if the judgment had been a judgment originally given in the registering court and entered on the date of registration. In addition, where the sum payable under a judgment is expressed in a foreign currency, the judgment will be registered as if it were a judgment for such sum in the currency of Cyprus (on the basis of the exchange rate prevailing at the date of the judgment of the original court). Furthermore, in accordance with the Foreign Judgments (Reciprocal Enforcement) Law, the judgment will be registered for the reasonable costs of and incidental to registration.

6 Appeals

6.1 Can decisions in relation to the recognition and enforcement of foreign judgments be appealed?

Yes, it is possible to appeal such decisions; however, under Cyprus law, an appeal does not suspend execution of the decision appealed. As regards judgments issued by the courts of EU member states, Article 49 of EU Regulation 1215/2012 expressly prescribes that decisions on applications for refusal of enforcement may be appealed by either party.

If a party wishes to suspend execution, it can do so by filing an application for a stay of execution pending the appeal (please also see Article 49 of the regulation).

6.2 Can the applicant seek injunctive relief while the appeal is pending?

Please see question 6.1.

7 Enforcing the foreign judgment

7.1 Once a declaration of enforceability has been granted, how can the foreign judgment be enforced?

A foreign judgment can be enforced in one of the following ways:

• a garnishee order to seize assets of the judgment debtor in the hands of a third party;
• a writ of execution for the sale of movables;
• a writ for the sale of immovable property or registration of a charging order over the assets of the judgment debtor;
• a writ of possession;
• a writ of sequestration of immovable property;
• an order to the judgment debtor to make monthly payments over the judgment debt;
• the commencement of bankruptcy or liquidation proceedings (although strictly speaking this is not an enforcement method); or
• injunctions and orders encumbering the interest of the judgment debtor on shares and other stock owned.

7.2 Can the foreign judgment be enforced against third parties?

Foreign judgments may potentially be enforced against third parties, subject to the confines of the enforcement methods described in question 7.1. One such method is through garnishee proceedings (governed by Section 73 of the Civil Procedure Law (Cap 6)), whereby the judgment creditor may enforce against money due and owing to the judgment debtor by a third party which is within the jurisdiction. This can include money held in the judgment debtor's name in a bank or payment institution.

8 Trends and predictions

8.1 How would you describe the current enforcement landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

In general, the current enforcement landscape in Cyprus is positive and the Cyprus courts regularly assist in the recognition and enforcement of foreign judgments. That said, there have been multiple instances in which applications for recognition have been denied on the basis of formal or procedural irregularities, such as irregularities concerning:

• the certification of the relevant judgment or award; or
• the formality of the translation.

On the other hand, the procedure for recognition and enforcement of judgments issued in other EU member states is very straightforward and does not require the assistance of the court, but simply the submission of a letter to the registrar of the district court requesting registration of the relevant judgment. Thereinafter, the judgment creditor is free to proceed with any enforcement methods available under Cyprus law as regards the enforcement of judgments issued by Cypriot courts.

On 1 September 2023, the Hague Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters will enter into force. This is a positive development, as it is expected to:

• reduce costs;
• promote access to justice;
• facilitate multilateral trade; and
• promote the better management of transaction and litigation risk.

The key features of the convention include the following:

• It applies to the recognition and enforcement of judgments in civil or commercial matters (Article 1), including consumer and individual employment contracts.
• It excludes certain matters from its scope, such as those relating to:
• • the status and legal capacity of natural persons;
  • family law;
  • insolvency;
  • privacy;
  • intellectual property; and
  • certain antitrust matters (Article 2(1)).
• It likewise excludes from its scope arbitration and related proceedings (Article 2(3)); and the contracting parties may also declare that it does not apply to other specific matters (Article 18(1)).
• It does not prevent or limit the recognition and enforcement of judgments under national law, bilateral, regional or other international instruments (Articles 15 and 23, with the exception of Article 6). This means that it will complement the existing instruments for the recognition of judgments.

No other reforms or developments in the Cypriot recognition and enforcement framework are envisioned or underway.

9 Tips and traps

9.1 What are your top tips for smooth recognition and enforcement of foreign judgments, and what potential sticking points would you highlight?

The smooth recognition and enforcement of foreign judgments is crucial in:

• promoting international legal cooperation; and
• ensuring that parties can effectively enforce their rights across borders.

Our top tips for potential applicants aimed at streamlining the process and ensuring smooth recognition and enforcement include the following:

• Verify whether the foreign judgment is amenable to enforcement. For example, under some legal instruments, only monetary judgments are enforceable.
• Before initiating recognition and enforcement proceedings, obtain a duly authenticated and certified copy of the foreign judgment from the competent issuing court. This confirms its authenticity and validity.
• If the foreign judgment is not in the official language of the enforcing jurisdiction, provide a certified translation to facilitate the recognition process.
• Be aware of any time limits/limitations of actions for initiating recognition and enforcement proceedings.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.