ECONOMOU & CO LLC

In a notable recent success, our arbitration team obtained a Mareva injunction (prohibitory order) against a state, marking a significant victory in a multi-million-dollar dispute. This achievement followed an intense litigation battle, demonstrating the team's strategic skill. The Mareva injunction is a potent legal instrument, freezing the defendant's assets to prevent dissipation before the final judgment. Securing such an order against a state is an exceptional feat globally, underscoring our team’s capability to handle intricate legal challenges. This success also highlights the willingness of Cyprus courts to support arbitration and protect arbitration awards, reflecting their commitment to the international arbitration process. The case has introduced complex issues of state immunity, which will be addressed in later stages, further emphasizing the intricacy and importance of our work. This accomplishment attests to the high standards of Economou & Co LLC’s legal practice and is an illustration of our dedication to exceptional legal practice. We excel in managing and resolving disputes that require a deep understanding of both international arbitration and domestic enforcement procedures. Economou & Co LLC stands out for its arbitration team, known for managing high-stakes arbitral award recognition proceedings from prestigious institutions such as the LCIA, SCC, and ICSID. Our team’s proficiency spans various sectors, consistently securing judgments amounting to hundreds of millions. Economou & Co LLC’s arbitration team maintains the highest standards of legal practice, continually broadening our expertise to meet the evolving challenges in arbitration and dispute resolution. Our recent achievements reflect our commitment to securing the best outcomes for our clients, regardless of the complexity or scale of the dispute.

Economou & Co LLC is pleased to announce a significant victory achieved by our Corporate Litigation team in a high-stakes case involving our client, a prominent investment firm, supervised by the Cyprus Securities and Exchange Commission. The claim brought against our client alleged an omission to carry out the claimant’s trading orders, with the claimant seeking various remedies, including: i. Special Damages totalling over USD 1 million, corresponding to the value of shares in international companies. ii. General damages for claims of breach of contract, negligence, fraud, misrepresentation, undue influence, and loss of revenue. iii. Court orders in relation to the claimant’s investment portfolio. Our client's primary line of defence was that the non-execution of the claimant's orders was due to factors beyond our client's control. This week, the District Court of Limassol dismissed the court action in its entirety. This case highlights Economou & Co LLC’s commitment to delivering top-tier legal support in complex corporate litigation and further solidifies our position as a leading law firm in Cyprus.

Economou & Co LLC has successfully represented a renowned financial institution in a pivotal insolvency case, securing validation of a claim exceeding EUR 40 million. This landmark judgment, has introduced significant legal clarifications with broad implications for insolvency proceedings and cross-border debt enforcement. A Landmark Legal Decision The Court addressed unprecedented legal questions, many of which had never been tested before in Cyprus. Drawing on influential Commonwealth case law, including UK and Australian precedents, the Court delivered key rulings that could reshape the legal landscape of insolvency proceedings in Cyprus. Key Legal Takeaways: Challenging a Liquidator: The Court clarified that entities with a financial interest in the liquidation have the standing to challenge and seek the replacement of a liquidator. Recognition of Foreign Judgment Debts: In a significant shift, the Court ruled that foreign judgment debts do not require prior recognition in Cyprus to be verified in insolvency proceedings. This aligns with Section 298 of Cyprus insolvency law, which broadly defines admissible claims. Limits on Liquidator’s Power to Reject Debts: A liquidator may reject a debt only if it is disputed bona fide—both subjectively and objectively. Debts Supported by a Judgment: If a debt is supported by a court judgment, a liquidator can reject it only in cases of fraud, misconduct, or collusion. The Role of Liquidators: The judgment reaffirmed that liquidators act in a quasi-judicial capacity when verifying debts, ensuring greater accountability and legal clarity. Shaping the Future of Insolvency Law This decision provides critical guidance for creditors, liquidators, and cross-border enforcement of claims, strengthening the legal framework governing insolvency proceedings in Cyprus. Economou & Co LLC is proud to have played a role in shaping the future of insolvency law, reinforcing legal certainty in complex, high-stakes cases.

Legal practitioners often face the challenging task of distinguishing between civil and criminal law—a distinction that is not always clear-cut. The Criminal Court of Nicosia recently confronted this issue in a case involving an alleged breach of a loan agreement. The court's decision drew heavily on the reasoning from the House of Lords in the case of R. v. Preddy [1996] W.L.R. 255. Essentially, the court agreed with the defendant's lawyers, concluding that transferring money from the claimant's bank account to another does not constitute the transfer of property belonging to the claimant. This is because a bank deposit is legally considered a "chose in action," which only creates a right for the depositor to demand payment from the bank. Ultimately, the court endorsed the defence’s view and dismissed the case at the prima facie stage. This landmark decision has profound implications, extending from straightforward loan disputes to intricate financial litigation. The successful defence was spearheaded by Theodoros Economou, Eleftherios Economou, and Ioannis Economou — a brilliant victory that underscores the nuanced nature of law.

In a notable judgment issued by the District Court of Nicosia last Monday, the Court granted a payment order in support of the enforcement of an Austrian judgment debt. Facts A judgment debtor initiated garnishee proceedings in Cyprus seeking to enforce an Austrian judgment debt. The judgment creditor, a Maltese online gaming provider, raised several arguments, including the claim that the judgment debtor had already pursued unsuccessful enforcement measures in both the Netherlands and Malta. The creditor also contended that any funds held in Cyprus were protected client funds, which were held for the benefit of the players and, therefore, not subject to execution. Outcome The District Court of Nicosia agreed with the positions of the judgment debtor and issued the payment order. Among the key points made by the Court were: The fact that additional enforcement proceedings had been initiated in other jurisdictions was not material to the case. As such the judgment debtor had not misled the Court by not referring to such proceedings. In fact, citing case law from the Supreme Court, the Court emphasized that "The enforcement of court judgments is an element directly linked to the authority of the judicial process. The credibility of justice depends on its effectiveness; otherwise, distrust in its purpose arises, leading to corresponding corrosive effects." Notably, the Court further concurred with the judgment debtor's argument that the burden of proof to demonstrate that the ultimate owner of the funds differed from the registered owner lay with the online gaming provider, not with the judgment debtor. The judgment illustrates the willingness of Cypriot Courts to uphold the execution of EU judgments, thereby contributing to acquis Communautaire. Eleftherios Economou and Ioannis Economou represented the successful party in this case.

On June 28, 2024, the District Court of Nicosia delivered a landmark decision in a multi-million-dollar conspiracy case involving eight individuals and corporations. The case addressed several crucial jurisdictional issues, such as whether Cypriot Courts retained jurisdiction under the given circumstances, whether they could permit substitute service out of jurisdiction, and whether the Russo-Ukrainian war constituted exceptional circumstances to justify such service. The Court determined that Cypriot Courts had jurisdiction to adjudicate the case, that substitute service out of jurisdiction could be ordered if exceptional circumstances existed, and that the Russo-Ukrainian war indeed created such circumstances: “The military conflict between Russia and Ukraine (...) with all due respect to the Defendants' opposing position, easily justified a finding that the case was surrounded by exceptional circumstances which allowed the exercise, by way of derogation, of the discretionary discretion of the Court to allow service of judicial documents in a substitute manner.” Moreover, the court made a very interesting remark with potentially significant implications, concluding that service via email does not necessarily constitute service within Russia: “...substituted service of judicial documents by means of email, is completely unconnected with any geographical limitation, in view of the uninterrupted access to the relevant electronic medium (email) and consequently, also the receipt of any message sent by means of the use of a computer or a smartphone or other device providing access to email wherever the recipient is located. Therefore, even if I accept the relevant Defendants' submission that the Court is not granted authority to allow substituted service of judicial documents when it will be effected by serving them on a Russian national within the territory of Russia, on the basis of the fact that the particular substituted method approved does not require, by default, service within the territory of Russia, the relevant Defendants' argument is unjustified.” The claimants were represented by Ioannis Economou and Eleftherios Economou, advocates of Economou & Co LLC.

Economou & Co LLC is delighted to welcome Dr Michalis Zivanaris as a new partner. With a strong commitment to integrity, professionalism, and academic excellence, Michalis is a perfect fit for our growing firm. His extensive experience in various legal sectors will enhance our ability to provide innovative and effective solutions to clients, further solidifying our reputation as leaders in the legal industry. At Economou & Co LLC, we pride ourselves on our unwavering dedication to legal excellence, client satisfaction, and success. Michalis’s addition reflects our continued efforts to attract top legal talent who share our values and vision for the future. Together, we will continue to build on the firm’s success and achieve new milestones in our journey. We look forward to all that we will accomplish with Michalis on board and are excited for the bright future ahead.

We are pleased to announce that our team successfully represented a prominent financial institution in obtaining a liquidation order against its debtor, involving a debt exceeding EUR 2 billion. This order, one of the highest value cases ever presented before the Cypriot Courts, marks a significant achievement in the realm of insolvency law and reinforces our firm's expertise in handling complex financial disputes. Understanding the Liquidation Process in Cyprus Liquidation, or "winding up" by the court, is a legal procedure undertaken to bring a company's existence to an end. This process is generally initiated when a company is unable to meet its financial obligations. In Cyprus, the Companies Law, Cap. 113 provides the statutory framework governing the liquidation process, which can be either voluntary or compulsory. A compulsory liquidation is initiated by the court following a petition, usually filed by a creditor. The most common ground for a creditor to seek liquidation is the company's inability to pay its debts as they fall due. Under Cypriot law, a company is presumed to be unable to pay its debts if a creditor, to whom the company owes more than EUR 5,000, has served a demand for payment, and the company has failed to comply within 21 days. Click here for our guide Liquidation & Insolvency in Cyprus to learn more. The Role of the Cypriot Court in Liquidation Proceedings For a successful liquidation petition, the Court must be satisfied that the debt in question is not bona fide disputed - meaning the debtor does not have a genuine or substantial argument against the validity of the debt. The Court carefully examines the financial situation of the debtor company, including its assets, liabilities, and overall solvency. In this landmark case, Eleftherios Economou, a senior partner at Economou & Co LLC, led the proceedings. His strategic approach and in-depth understanding of insolvency laws were pivotal in persuading the Court to issue a liquidation order. Implications of the Liquidation Order The successful liquidation order obtained by our firm not only allows our client to recover the outstanding debt but also sends a clear message to the market about the robustness of legal recourse available in Cyprus for financial institutions dealing with insolvent debtors. It highlights the strength of our legal team in addressing complex insolvency cases and reinforces our commitment to delivering outstanding results for our clients.

Economou & Co LLC is proud to announce its significant role in securing exclusive distribution rights on behalf of its client, Padeland by Etheras Group of Companies, with Adidas Padel. The sports of padel is gaining global popularity, and Padeland by Etheras Group of Companies is leading padel’s expansion in Cyprus. Our firm provided comprehensive legal services, including the review of the official distribution agreement with Adidas Padel, ensuring it met all legal standards and aligned with Padeland Group’s strategic business goals. Padeland by Etheras Group now exclusively distributes Adidas Padel’s top-tier sports equipment and AFP padel courts throughout Cyprus under the brand name “All For Padel Cyprus”. In addition, our firm assisted in the incorporation of the companies that form the PADELAND by Etheras Group of Companies. This foundational work was essential in structuring the group for operational success and future growth, enabling them to establish a robust presence in the local and European markets. Furthermore, our firm has successfully secured European Trademarks, on behalf of our clients, vital in safeguarding the brand's identity and facilitating our clients’ expansion across Europe. Padeland by Etheras Group of Companies is set to open an expansive Adidas Padel 360° Club in the city of Larnaca very soon. The club will feature a Padel Academy, state-of-the-art Adidas Padel courts and a Clubhouse which will incorporate an Adidas Padel Pro Shop and a modern cafeteria, making it a premier destination not only for padel enthusiasts but also for people who want to get into the sport. We are proud to have been a cornerstone in these substantial legal and strategic developments for our clients.We extend our best wishes for their continued success and are eager to witness the positive impact their new club will have on the community and the broader sports industry. With a track record of facilitating major partnerships and securing critical intellectual property rights, our firm continues to demonstrate its expertise in sports law and intellectual property law, ensuring our clients achieve their business objectives while maintaining legal integrity in their market expansions.

Economou & Co LLC is pleased to announce its appointment by a leading financial institution to lead a comprehensive investigation into a matter involving alleged wrongdoing, with an estimated value exceeding USD 250 million. This complex case, which spans multiple jurisdictions, highlights our firm’s deep expertise in addressing sophisticated cross-border legal challenges and commercial disputes. Our role in this investigation reflects the trust placed in by global financial institutions to navigate intricate legal issues involving high-value matters. With a proven ability to manage the complexities of fraud schemes and illicit transactions, our team remains at the forefront of high-stakes dispute resolution.