Jurists discuss advantages of arbitration for commercial disputes

Senior jurists welcomed on Friday the establishment of a European Center for Arbitration and Mediation for Commercial Disputes in Cyprus, underlining its advantages over court litigation.

Speaking during a meeting, in Nicosia, organized by the Rotary Club of Nicosia and Aspelia, the Attorney General of the Republic Costas Clerides said that the use of arbitration and mediation has been gaining ground in recent years.

Compared to court litigation, this alternative to settle disputes is quicker, more flexible and provides specialization, he said. According to Clerides there is no doubt that the setting-up of a state chapter in Cyprus, is highly beneficial in the field of arbitration and mediation.

The Attorney General also noted that international arbitration is even more important than domestic arbitration and meets the demands of parties from different countries, seeking an impartial and reliable dispute resolution mechanism.

He noted that the European Court of Arbitration (ECA) which has been established back in 1959, plays a very important role in providing a reliable forum of arbitration and mediation to demanding litigants.

Referring to the existing legal system in Cyprus, Clerides said that the area of the administration of justice is of high quality and standard. He pointed, however, to two shortcomings, namely long delays and high costs.

During recent years, this has given wide prospects to the alternative method of arbitration in our country, the Attorney General added. I have no doubt that in this respect, the Cyprus Chapter of the ECA has a very important role to play he concluded.

In his address, the President of the Supreme Court of Cyprus Myron Nicolatos also noted that arbitration and mediation may prove to be very useful tools, especially in commercial and financial disputes.

The commercial sector has welcomed alternative dispute resolution (ADS) forms, Nicolatos said and referred in particular to insurance companies, law firms, businesses and government agencies that are looking for cost-effective ways to manage claims.

He added that the establishment of a European Centre for Arbitration and Mediation for commercial disputes, in Cyprus, promotes various ADR schemes and contributes to a harmonized application of arbitration and mediation framework in the country.

Nicolatos remarked, however, that the use of mediation in the EU is still very low, as documented in an extensive European Parliament Report in 2014.

The President of the High Court observed that commercial parties and their advisors have come to prefer ADR over litigation in national courts, especially for international commercial disputes.

National courts are generally supportive of the recourse to arbitration and mediation, Nicolatos concluded.

Source: Cyprus News Agency