The concept of ‘pre-action protocol’ was introduced with the New Civil Procedural Rules that were implemented on the 1st of September 2023 and constitute a milestone in the evolution of civil litigation in Cyprus.
Pre-action protocols essentially refer to several rules and procedures that need to be followed by the parties before any action in Court.
The concept of Pre-Action Protocols and Exceptions
The scope of pre-action protocols is to encourage a sufficient negotiation between the parties in order to achieve an out of court settlement and reduce the workload of the Court. Efforts for settlement out of court used to be a common practice followed even before the introduction of the new civil procedure rules. However, the new civil procedure rules officially establish this practice and make it obligatory for the parties to entail in a genuine attempt to achieve an out of court settlement. The court may impose sanctions to parties that proceed to a court action without having followed the relevant pre-action protocol.
However, it has to be mentioned that there are certain conditions under which the pre-action protocols may not be followed. If for example a claim is very urgent due to the time limit to file the lawsuit and following the pre-action protocol would result in obvious adverse consequences for the claimant, such as losing their actionable right due to delay, then the pre-action protocol does not have to be followed.
It is emphasized though that the party that decides to skip the pre-action protocol will need to provide the Court later on with the detailed reasoning of this decision, and it is up to the Court’s special discretion to conclude whether the decision of not following the pre-action protocol is acceptable or not.
The types of Pre-Action Protocols
Three pre-action protocols have been established, each of which intends to cover different types of civil claims.
Protocol No.1 relates to any civil claim that has to do with a particular and specific amount of money, such as any debts. In case of this type of claim, the claimant has to send a letter of claim to the defendant which needs to be drafted according to the rules of the Protocol. Some essential rules are that the letter of claim has to include adequate and precise information about the claim, include any account statements and copies of documents which the claim might be based on, and stipulate any interest if applicable as well as the legislation/case law that relates to the interest. The defendant has 14 calendar days from the date of receipt of the letter of claim to respond to the claimant.
By responding to the letter of claim, the defendant needs to clearly state whether they accept the claim entirely or partially, or whether they reject it, and in case that they reject the claim (either as a whole or partially) they need to demonstrate in detail the reasons of rejection and include any supporting documentation they might have. When the claim is accepted by the defendant, the defendant needs to provide the claimant with a plan/offer to cover the debt as well as details regarding their income and any relevant supporting documentation.
Protocol No.2 is relevant to claims concerning road traffic accidents, and cases where personal injuries are the primary concern. Thus, this type of Protocol could include material damages as well as personal injuries. According to this Protocol, the claimant needs to send to the defendant a letter of claim, which must include information such as the facts surrounding the incident, the nature and extent of injuries, the expected amount of claim, description of any medical treatments that took place, any loss of earnings etc.
The claimant has to attach all the necessary documentation in order to support their claim. Thus, in cases where Protocol No.2 applies, medical experts’ reports play a crucial role, as they are necessary in order to demonstrate the injuries suffered by the claimant as a result of the accident. It is noted that the claimant must send two copies of the letter of claim to the defendant; the defendant keeps one copy for themselves and must provide their insurance company with the second copy.
Furthermore, the defendant has 28 days to reply to the claimant’s letter, even though an extension can be provided upon consent of the claimant. The response needs to clearly state whether the claim is acceptable or not (either partially or in its entirety), and if it is not acceptable, then the defendant needs to analyse the reasons of rejection of claim and include any supporting evidence they might have.
Protocol No.3 applies to cases when Protocols No.1 and No.2 are not relevant. In contrast to the above types of Protocols, this Protocol is less structured, in the sense that there is not a defined structure for the letter of claim, neither a set deadline for the defendant to reply. It is upon the parties to define these matters; however, the parties should follow the same rationale as the two above Protocols. The letter of claim should be as comprehensive and precise as possible and include any supporting documentation, and the claimant has to provide the defendant with reasonable time to reply to their claim depending on the nature and complexity of the claim.
Moreover, the defendant has to acknowledge receipt of the letter of claim within 14 calendar days from the date of receipt of the letter and shall inform the claimant when they intend to fully respond to their claim. If the defendant asks for an extension of the provided deadline to respond to the claimant, then they must explain in detail the reasons for the requested extension.
The establishment of the Pre-Action Protocols promotes a more collaborative approach to dispute resolution. This encourages the early settlement of cases that would prevent the parties from entailing in long and high-cost court proceedings.
Our Services
Our Cyprus lawyers that have a rich experience in dealing with various claims, will guide you through the different stages and requirements of the pre-action protocols and may assist you to achieve an out of court settlement. Moreover, our Cyprus law firm that has dealt successfully with multiple litigation cases, might assist you with bringing an action to court if an out of court settlement has not been achieved following the negotiations according to the Protocols.
