CYPRUS - Non-EU buyers not safe from long arm of ECJ ruling
June Samaras
By Stefanos Evripidou
http://www.cyprus-mail.com/news/main.php?id=45433&cat_id=1
THE EUROPEAN Court ruling on the Orams case could have worldwide
implications for investors in the north, giving Greek Cypriots
recourse to assets held outside the European Union, warned a human
rights lawyer yesterday.
The ruling opens the door to Greek Cypriot refugees pursuing the
assets of foreign “buyers” of their land in any one of the 27 EU
member states, and even beyond, said Achilleas Demetriades.
The European Court of Justice ruling (ECJ) backed a Nicosia court’s
judgement earlier this week against the British couple who had built a
villa on land belonging to refugee Meletis Apostolides.
Assuming the English Court of Appeal adopts the ECJ ruling,
Apostolides will be able to enforce the Nicosia court judgement in
England by seizing the Orams’ assets in the UK.
The ruling has been described as a “huge blow” to the Turkish Cypriots
with ominous consequences predicted for the economy of the breakaway
state, heavily reliant on the sale of Greek Cypriot properties to
foreigners.
Demetriades argued that the scope of the ruling went beyond simply
discouraging EU citizens not to exploit Greek Cypriot land in the
north, but was a warning bell for anyone with assets in the EU, or
even in third countries outside the Union.
“This not only affects EU citizens, but also any persons with assets
in the EU. For example, if you are from Russia, and have assets in
Europe, you can still be caught,” he said.
Even if there are difficulties in executing a judgement against the
usurper of your land in Cyprus, “you still have 26 other member states
to look for enforceability, thereby increasing your chances”.
The human rights lawyer further suggested the long tentacles of the
law could stretch beyond the EU to other countries whose residents
have property interests in the north Potentially, judgements could be
enforced anywhere in the world where there is a bilateral judicial
enforcement agreement with an EU country, possibly including Russia,
Israel or even Turkey.
“The question is by registering the judgement in an EU country, can
you take that country’s bilateral agreements and then execute in the
third country? If, for example, we were to register a judgement in
France, which has a reciprocal enforcement of judgement treaty with a
third country, say Russia, could you take advantage of that judgement
in France and execute it in Russia?” asked Demetriades.
“You can use the other 26 EU member states as stepping stones to
execute judgement in a third country on the basis of bilateral
agreements which are independent of the EU. Obviously, the main target
for this would be Turkish interests which are in abundance in the
occupied areas,” he added.
A second possible implication of the ECJ ruling is the potential for
civil litigation on events taking place in the north, with execution
of the judgements in the south or EU.
“For example, a Greek Cypriot travels to the occupied areas and gets
his car crashed into by a Turkish Cypriot in Kyrenia. He may bring an
action against the Turkish Cypriot in the Kyrenia district court
temporarily situated in Nicosia. If he obtains a judgement, and the
defendant has assets in the government-controlled areas or the EU,
then he can execute the judgement,” said Demetriades.
The reaction to the ruling in the north has been one of panic and
outrage, with calls from some quarters for Turkish Cypriot leader
Mehmet Ali Talat to pull out of the talks and even resign.
Speaking from London, President Demetris Christofias said the Orams
decision should be used effectively in the talks but without adopting
extreme positions. “Of course it’s not our position that the property
issue and the Cyprus problem will be solved by the courts,” he added.
Hubert Faustmann, an international relations expert, described the
ruling as a “huge blow” to the Turkish Cypriots which could prove to
be “the kiss of death” in the long-term.
“It’s a huge success for the Greek Cypriots, which adds another layer
of urgency to reach a settlement. It’s clear that without a solution,
any Greek Cypriot, possibly with government help, can ask for their
property back,” he said.
“It’s a vindication of the Greek Cypriot property position in the
north, and anyone buying there will know about it. The north’s
attractiveness will suffer and there is a huge hefty bill looming on
Turkish Cypriots now,” he added.
Faustmann warned that the Turkish Cypriots could also seek redress for
their properties in the government-controlled areas which would spark
off a property war in the courts.
“Things can get ugly but it depends on how they want to play it and
whether they want to escalate it?” he said.
The analyst said both leaders were still determined to find a solution
through direct talks and not through the courts. But if the chance is
passed, and more people start taking advantage of the Orams ruling,
“in the long-run this could be the kiss of death for the north, where
property is a huge source of income.”
Copyright © Cyprus Ma
--
June Samaras
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