Cyprus: As a general principle, the mere fact that there are multiple parties and multiple issues, which are inter-related and some, but not all, defendants are bound by an arbitration clause, is not bar to the right of the defendants, who are parties to the arbitration agreement to invoke the clause.
In a recent decision issued by a Cypriot 1st Instance Court, in which our lawfirm, represented the Defendants, the Court allowed an application for a stay of proceedings, pursuant to Article 8 of the International Commercial Arbitration Law 101/87 (“UNCITRAL Model Law”), where there were multiple Parties, and multiple issues.
The Cyprus Court adopted the Canadian case, Board Sweden A.B –v- N.Y.A. Strommes AB (1988) 41 B.L.R. (Ont. H.C.), in which it has been inter alia held, that there is a strong public policy, that where Parties have agreed by a contract that they will have the arbitrators decide their claims, instead of resorting to the Courts, the Parties should be held to their contract, and that the mere fact, that there are multiple parties, and multiple issues, which are inter-related and some, but not all, Defendants are bound by an arbitration clause, is not a bar to the right of Defendants, who are Parties to the arbitration agreement, to invoke the clause.
For further information on this topic please contact Mr. Soteris Pittas at SOTERIS PITTAS & CO LLC, by telephone (+357 25 028460) or by fax (+357 25 028461) or by e-mail (email@example.com).
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