The CIArb Cyprus Branch has drafted its own set of arbitration rules (the Rules) as well as a fixed fee scheme for disputes up to €50,000.
The Rules intend to govern arbitrations under the Arbitration Law Cap 4, being the domestic arbitration law. The Practice and Standards Committee (PSC) of CIArb have reviewed and approved the Rules and scheme in order to ensure quality and consistency of ad hoc standards with those already promulgated formally by the CIArb.
The Rules are based on the CIArb Arbitration Rules 2000 edition, with the inclusion of additional clauses to provide parties with rules compatible with the legislation of Cyprus.
Where any agreement, submission or reference provides for arbitration under the Rules of the Chartered Institute of Arbitrators (‘CIArb’ or the ‘Institute’), Cyprus Branch, the parties shall be deemed to have agreed that the arbitration shall be conducted in accordance with these Rules.
The Rules cover issues from commencement, through interlocutory procedure, to award writing and costs.
The writing of the Rules was a long procedure, to make sure that they were compatible with the Institute’s rules and procedures as well as with Cyprus legislation.
The Cyprus Arbitration Scheme has been designed to provide a cost effective way of resolving commercial, business-to-business, and technical disputes.
It can also be used to resolve other kinds of dispute and offers a fixed cost solution for disputes which meet some simple criteria. Where the fixed fee criteria do not apply, the Arbitrator will give an estimate of his fees on request.
The Arbitrator's fee under the scheme, will be €2,000 (plus VAT where appropriate), provided the dispute is a commercial, business-to-business, or technical dispute between two parties, has a value of less than €50,000 and will not require a preliminary meeting to determine what the issues are or a final hearing lasting more than half a day.
The fixed fee does not include the cost of a venue for the final hearing if one is required.
The Cyprus Branch of CIArb will administer the Cyprus Arbitration Scheme, and all the Arbitrators on the panel are Fellows of CIArb.
As a Cyprus Branch, we do really believe that these rules will change arbitrations in Cyprus because they put things in order taking into consideration the loopholes of the legislation in Cyprus.
Taking this opportunity, I would like to thank everybody who helped in the writing of these rules, especially Mr Andrew Demetriou, Mr William B McLaughlin and Miss Elina Zlatanska who helped me finalise them.
Any questions about the scheme can be emailed to: firstname.lastname@example.org.