Supreme Court Decision on Fees Collected by the Cyprus Ports Authority

(Civil Appeal No. 367/2018)

In a recent judgment, the Supreme Court examined a case concerning the imposition and collection of berthing fees by the Cyprus Ports Authority on a company engaged in the professional operation of recreational vessels.

The claimant company had paid, during the period 2002–2006, a total amount of approximately €60,000, alleging that the fees had been collected without any legal or contractual basis and without the provision of any consideration. On this basis, it sought the recovery of the amounts paid, invoking the principles of unjust enrichment.

The Court of First Instance dismissed the action, holding that the fees had been paid in exchange for consideration and on the basis of an agreement, which it found to be evidenced by a relevant letter sent by the Cyprus Ports Authority to the company.

An appeal was lodged against that decision, with the principal ground being that the trial court had erred in basing its judgment on an agreement which had not been pleaded or relied upon by either party.

The Supreme Court upheld the appeal, ruling that a court cannot base its decision on a legal or factual basis that does not form part of the parties’ pleaded case. It was emphasized that judicial findings must be strictly grounded on the allegations advanced in the pleadings and not on legal bases introduced ex officio by the court itself.

As a result, the first-instance judgment was set aside and an order was made for the retrial of the case before a different judge, with the costs of the appeal awarded in favour of the appellant.

The decision highlights the fundamental importance of procedural discipline, particularly in cases involving financial claims and unjust enrichment against public bodies.