1. The View from Cyprus
Nikitas E. Hatzimihail

2. Paper outline 1. The Context
- Brief Introduction to the Cyprus Legal System
- Brief introduction to the Cyprus Problem
2. Challenges and Lessons from Dealing with Northern Cyprus
- A de facto legal system
- Problem cases
3. Potential challenges in dealing with PS NRS
- Identifying areas of challenge
- Potential legal solutions

3. Outline of presentation
1. Cyprus as a Jurisdiction of Interest
2. The Cyprus problem
3. Cases involving post-Soviet

5. Cyprus: Country profile
Ethnic composition: Greek – Turkish (4:1)
Official languages: Greek (and Turkish)
British possession and Colony of the Crown,
Independence, 1960
(British Sovereign Base Areas remain – colonial Cyprus law applies, not part of the EU)
Turkish invasion, 1974 – loss of control over 37% of territory
EU Accession, 2004

6. Cyprus: Mixed legal System
Common law dominant in “core” areas of the legal system and private law
Codification of common-law principles in each basic legal field (Contracts, Torts)
Procedural law clearly falling within the English/“common law” tradition
Common-law encroachment upon the civilian enclave of family law (e.g. constructive trusts)
Presence of English language continues to be strong
Greek (and Turkish) as official language
Mutation
See Symeonides (2003); Hatzimihail (2013, 2015, 2017)

7. Cyprus: Environment for cross-border disputes
Drastic transformation of society, economy since the 1980s/1990s
Internationalized economy,
Foreign residents:
MS citizens (ECE), mostly workers
Commonwealth of Independent States (CIS), mostly workers, some affluent
Middle East: few, some workers, some affluent
Many affluent or long-term third-country nationals obtain citizenship =>
Assets: residents, non-residents (MS), non-residents (third-country, esp. post-Soviet)
Companies, trusts

8. Cyprus: types of cross-border disputes
Enforcement of judgments over property located in Cyprus
Family
Succession
Civil and commercial
Interim relief
Injunctions ad personam
Emerging
Enforcement of jurisdictional agreements?
Spillover of non-contractual claims (e.g. personality / internet torts)

9. Cyprus: types of potential cases relating to PSS NRS
1. Seeking to establish jurisdiction over individuals
- domicile is paramount for both jurisdiction and applicable law
A: few problems (unless an entity itself sues – see 3 below)
2. litigating issues involving actions (and legal actions) in the pSS NRS territory
- Cf Hesperides Hotels Ltd v Aegean Turkish Holidays Ltd (HL 1978, CA 1978)
A: Follow an English-law approach?
3. Having to acknowledge the political entity itself
- e.g. judicial assistance; enforcement of judgments\
A: No de facto recognition – look to international and EU law – strong Cyprus public policy
Q: What about false conflicts?

10. Cyprus: types of potential cases relating to PSS NRS
Seeking to establish jurisdiction over individuals
A: few problems
unless an entity itself sues – see 3 below)
Domicile is paramount for both jurisdiction and applicable law
- EU PiL: “domicile” for civil jurisdiction – habitual residence
- Common law: domicile
- Little role for nationality as connecting factor / jurisdiction ground
- Dual nationalities in many cases?
Cypriotization of many cases
Q: What about “false conflicts”?
Forum non conveniens?

11. Cyprus: types of potential cases relating to PSS NRS, pt 2
Litigating issues involving actions (and legal actions) in the pSS NRS territory
- Cf Hesperides Hotels Ltd v Aegean Turkish Holidays Ltd (HL 1978, CA 1978)
Actions for trespass and conversion of chattels – dismissed under Moçambique rule
A: Follow an English-law approach?
Cases might involve more than private interests?
- Forum non conveniens
- any impact of EU PIL? (as long as no effet reflexe, not so much)

12. Cyprus: types of potential cases relating to PSS NRS, pt. 3
Having to acknowledge the political entity itself
- e.g. judicial assistance; enforcement of judgments\
A: No de facto recognition
Strong Cyprus public policy
- consideration of precedents relative to our own case
- conscious about reciprocity
Look to international and EU law
(due deference to international legality)

14. Artesa Trading Co Ltd v Credit Bank of Russia
A recent case…
Artesa Trading Co Ltd v Credit Bank of Russia
(Supreme Court of Cyprus, Civil appeal, 2018)
Claimants: P2, P3, P4, P5: Turkish Cypriots (address just north the ‘green line’)
- organized in a company (presumably) registered in the North (“A”)
Lead plaintiff (P1): Cyprus Company with address listed in Pyla
(only inhabited village in the ‘green line’ – both Greek and Turkish Cypriot residents)
Defendant: Russian bank

16. A recent case (ARTESA – cont’d)
Contract by A to ”provide oil and asphalt products to another party in areas south of the UN controlled dead zone” (Plaintiff’s statement of claim)
Plaintiffs’ payment to defendant made by a bank in the north
P2, P3, P4, P5 created P1 and assigned all their claims against Defendant to P1
Action stricken out for lack of standing – S.Ct. affirmed
- Sole purpose for creation of P1was to file a claim against D for “facts allegedly occurred in the occupied areas of the Republic”
– this constitutes an ”evident” abuse of process (inherent powers doctrine)
- The Courts of the Republic cannot, “via the indirect approach” examine and decide over issues arising from actions occurring in the occupied parts

17. (Tentative) conclusions
Factual approach over a normative approach?
- in principle yes, but beware of the potential normativity of factual approaches