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Our firm launches application for damages before the General Court of the European Union
20.12.2013

Dr. K. Chrysostomides & Co LLC wishes to announce that, on 16 December 2013, it launched an Application for damages (on the basis of Articles 268, 340(2) and 340(3) TFEU) before the General Court of the European Union on behalf of a number of depositors and shareholders of Cypriot banks against Eurogroup and other EU institutions in relation to the ‘bail-in’ measures imposed on the Republic of Cyprus. For the first time in the history of the EU jurisprudence the Luxembourg Court is called upon to decide whether acts of the Eurogroup are attributable to the EU, thus giving rise to an obligation for compensation.

Our legal team, along with foreign Professors and Barristers, led by Takis Tridimas, Professor of European Law at King’s College London, Barrister, represents over 50 depositors and shareholders of Cypriot banks. The claimants are seeking compensation for the loss they have suffered as a result of the ‘haircut’ imposed on their deposits, as well as, the depreciation (in both value and number) and/or elimination of their shares. In particular, the claimants mainly challenge (by way of an application for damages) the decision of the Eurogroup of 25 March 2013 imposing a ‘bail-in’ on two Cypriot banks (Bank of Cyprus and ‘Laiki’ Bank), as well as, the acts of the European Central Bank, the Commission and the Council in endorsing and implementing that decision.

The Eurogroup and the EU as a whole face claims, primarily, for serious violations of the claimants’ right to property and of the principles of non-discrimination, protection of legitimate expectations and the principle of proportionality, as prescribed by EU law. 

Cyprus is the only EU Member-State - to date - to have been provided with financial assistance on the precondition of a ‘bail-in’ and other coercive measures. This gives rise to a number of novel legal questions and argumentation regarding the scope of the EU’s legal accountability, the merits of which the Court shall be called upon to decide.

The Defendant institutions are normally expected to file their defenses within two months, unless an extension is granted thereto by the Court. Thereafter, the claimants shall have the right to file a reply and following the hearing of the case. The claimants have requested that the case be addressed with priority.

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