Arbitration in Ireland: An Overview

Introduction

Arbitration has become an increasingly popular method for resolving disputes in Ireland, offering a private, efficient, and flexible alternative to traditional court litigation. Ireland is increasingly recognised as an appealing seat for international arbitration, in circumstances where Ireland is the only English-speaking EU member state with a common law legal system. This article provides an overview of arbitration in Ireland, including the legal framework, key features, and the enforcement and appeal of arbitral awards.

 

Legal Framework

Ireland's arbitration framework is primarily governed by the Arbitration Act 2010 ("the Act"), which applies to all arbitrations commenced in Ireland, both domestic and international, after 8 June 2010. The Act adopts the UNCITRAL Model Law with minor modifications and additions (including, for example, that the default number of arbitrators in Ireland is one rather than three). This alignment with the UNCITRAL Model Law ensures that Ireland's arbitration practices are consistent with international standards, providing a familiar and reliable legal environment for parties from different jurisdictions.

The Act has been periodically amended to address evolving needs and practices, and to modernise it with international standards. Whilst Irish law generally prohibits third-party funding of litigation by parties with no interest in disputes, the Court and Civil Law (Miscellaneous Provisions) Act 2023 has introduced provisions that permit third-party funding in international commercial arbitration. This amendment reflects Ireland's commitment to maintaining a modern and adaptable arbitration framework.

 
 

Key Features of Arbitration in Ireland

1. Common Law Jurisdiction.

Ireland is a common law jurisdiction with a written, codified constitution. This legal tradition influences the arbitration process, including the treatment of evidence and the burden of proof.

2. Unified Framework for Domestic and International Arbitration.

The Act simplifies the arbitration process by providing a unified statutory framework for both domestic and international arbitration. This approach eliminates the need for separate procedures and ensures consistency in the application of arbitration rules.

3. Arbitral Institutions and Rules.

Ireland has adopted the UNCITRAL Model Law, which applies unless parties agree to another set of rules. The most common arbitral institution to which referrals are made in Ireland is the International Court of Arbitration of the International Chamber of Commerce ("ICC"). Other specialist institutions include the Chartered Institute of Arbitrators ("CIArb") (with its All-Ireland Arbitration Rules, which also accommodate arbitrations seated in Northern Ireland under the UK's Arbitration Act 1996). 

Ireland has also seen growth in the use of the Court of Arbitration for Sport ("CAS") for sports disputes. Notably, UEFA, the governing body of European football, amended its Authorisation Rules Governing International Club Competitions in 2024, allowing Dublin to be the first and only alternative seat to Lausanne, Switzerland for CAS arbitration under UEFA's Authorisation Rules. 

4. Mandatory and Non-Mandatory Provisions.

The Act includes both mandatory and non-mandatory provisions. Mandatory provisions, such as the restriction of liability of arbitrators and the effect of awards, cannot be contracted out of by the parties.

5. Burden of Proof and Evidence.

In civil arbitration, the burden of proof lies with the claimant, who must prove its claim on the balance of probabilities. The approach to evidence, including disclosure and witness testimony, is flexible and can be determined by the parties or the tribunal.

6. Expert Evidence.

Parties are free to agree on the procedure for party-appointed experts, who typically produce written reports and may be examined at an evidential hearing. The tribunal may also appoint experts to advise on technical matters and will routinely adopt the practice of "hot-tubbing" of experts to assist the Tribunal. 

 

Enforcement and Appeal of Arbitral Awards

1. Enforcement. 

Ireland is a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), which facilitates the enforcement of arbitral awards across jurisdictions. An arbitral award, irrespective of the country in which it was made, is recognised as binding and enforceable by the Irish courts. The Irish courts are generally supportive of arbitration, and a mechanism for stays of court proceedings is often relied upon where a valid arbitration clause exists. 

There are limited grounds available for the setting aside or refusal to enforce an award. Arbitration matters are dealt with by the President of the High Court by way of a dedicated court list. In this regard, the enforcement process is relatively simple and cost-effective, akin to enforcing a judgment or order of the Irish High Court. A decision made by the Irish High Court on enforcement cannot be appealed.

2. Challenges and Appeals.

The grounds for challenging an arbitral award in Ireland are limited to those listed in the UNCITRAL Model Law. For awards rendered in Ireland and which are being enforced in Ireland, no grounds of appeal are available. However, an application to set-aside the award may be made on very limited grounds, including jurisdictional issues, breaches of public policy, and procedural impropriety. The Irish courts have set high thresholds and strict limitation periods to set-aside an arbitration award rendered in Ireland, ensuring that challenges are only successful in cases of fundamental breaches. Challenges based on breaches of public policy, by way of example, must be made within 56 days of the circumstances giving rise to the challenge.

 

Conclusion

Arbitration in Ireland offers a reliable and efficient mechanism for dispute resolution, supported by a robust legal framework that aligns with international standards. The Act 2010 provides a unified and adaptable statutory framework, while the country's common law tradition ensures a fair and consistent approach to arbitration proceedings. With its commitment to modernising arbitration practices and facilitating the enforcement of arbitral awards, Ireland remains an attractive jurisdiction for domestic and international parties seeking an effective alternative to traditional litigation.

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