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Arbitration

Aside from the judicial process, the most common form of dispute resolution in Ireland is Arbitration. We have the Arbitration Acts of 1954 and 1980 on the statute books and, to attract international arbitration to Ireland, the legislature enacted the Arbitration (International Commercial) Act 1998. The 1954 Act remains the principal source of arbitration law in this jurisdiction. The Chartered Institute of Arbitrators and the American Arbitration Association, for example, have a presence in Ireland in addition to national bodies, such as the Law Society and the Bar Council who offer their services in this area.

What is Arbitration?

Arbitration is an alternative method of dispute resolution to civil litigation. It is a consensual process whereby parties agree to refer disputes between them to the decision of an arbitrator rather than to resolve their differences in the courts. The person agreed on by the parties to adjudicate upon the dispute as arbitrator is often chosen for his particular qualifications or his ability to readily comprehend technical issues involved in the dispute. As a result many arbitrators are non-lawyers with expertise in specialised fields, such as architects.

Matters which can be referred to Arbitration

By definition, arbitration is a procedure which may not be availed of except by way of a contractually binding agreement to arbitrate and an arbitration clause exists to support an underlying contract of which it forms part. The following is a non-exhaustive list of the most common subjects of arbitration in this jurisdiction and all possesses a contractual foundation:

• Insurance contracts and policies
• Maritime contracts;
• Contracts for the sale of goods and the supply of services
• Contracts for the sale of motor vehicles
• Holiday contracts
• Building/engineering contracts; and Partnership agreements (whether under the Partnership Act 1890 or the Limited Partnership Act 1907)

However, it does not follow that an arbitrator's power to determine disputes is confined to consideration of exclusively contractual subject matter or the law of contract. A broad range of subject matter beyond the purely contractual is arbitrable

Duration of Process

At least in theory, arbitration can be much more efficient and speedier than litigation in court as there should be no backlog or build up of cases in the list. However, this depends on the availability of the arbitrator (chosen by the parties) and the lawyers (chosen by the parties). Those chosen may already have commitments which will contribute to delays.

If it is an "arbitration" under Irish law then the decision (award) of the arbitrator is final and binding. There is no appeal to the courts, except for very restricted rights to set aside the award in very limited circumstances. The provision for the finality of the award is similar in most countries, pursuant to the New York Convention on the Recognition and Enforcement of Arbitral Awards 1958. The High Court in Ireland has shown that it is very supportive of arbitration. There has been very little interference by the Superior Courts in the arbitral process in the 50 years since the Arbitration Act 1954 was adopted.

Advantages of ADR, including arbitration:

• The privacy and confidentiality of the process
• The informal and flexible procedure
• With regard to arbitration only, the final and binding nature of the decision and the exclusion of appeals
• The fact that the process can be very speedily held with no tribunal lists or backlogs. This does of course depend on the availability of parties, the lawyers or other representatives and the chosen arbitrator; and
• The fact that the procedure can be held in an agreed venue and at an agreed time (even weekends)

For further information, please contact Malcomson Law by calling 01 8744422 or by filling out an Online Enquiry Form. A solicitor who specialises in Arbitration will contact you to advise you of your legal rights and entitlements

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