In certain circumstances, Cypriot Courts in civil proceedings may order the claimant to provide financial security for the legal costs that may be awarded to the defendant if the claim ultimately fails. This mechanism serves to protect defendants from the risk of litigating against claimants who may lack the financial means to satisfy a potential costs order.
Legal framework
The concept of security for costs was previously regulated under Order 60 of the former Civil Procedure Rules and is now governed by Rule 26 of the new Civil Procedure Rules introduced in Cyprus in 2023. Notably, the new provision does not introduce substantive changes to the previous legal framework but largely reflects the principles that applied under Order 60.
