E UROPE ’ S H IDDEN                  J EWEL : A N A RGUMENT                  FOR A RBITRATING IN                  I RELAND...
P RESENTATION F ORMATI.     Arbitration in Ireland Pre -2010 (Chris)       a)       Roots and Influences of Modern Arbitra...
R OOTS & I NFLUENCESBrehon Laws• Ancient Customary Celtic Laws• Governed by “Brehons”• Dealt with Issues before them:   •P...
T HE A RBITRATION A CTS1954 Arbitration Act   • Influenced Heavily by English Arbitration Act 1950   • Governed Domestic A...
T HE A RBITRATION A CTS1980 Arbitration Act    •   Main Features:         • Mandatory Staying of Court Proceedings        ...
I RISH A RBITRATION A CT 2010       Single most important development in Arbitration in Ireland to date•   What brought ab...
W HO                 BROUGHT ABOUT                                                  THIS CHANGE ?Klaus Reichert           ...
R ORY B RADY                                            Attorney General 2002-2007Suggested that asymposium be organizedto...
ATTORNEY G ENERAL’ S D ISPUTE     R ESOLUTION S YMPOSIUM        Held on April 28, 2007        Engineers Ireland (IEI), C...
S UMMARY                            OF          S YMPOSIUMGeneral consensus reached that great reform in Arbitration laws ...
I NTRODUCTION OF               A RBITRATION B ILL 2008             ICCA opening ceremony             (June 2008)          ...
2008 B ILL A CCEPTED                   “The Desire for Finality                   will be met through this                ...
A RBITRATION A CT 2010• Signed into law by thePresident 8/3/2010 and comesinto operation on 8/6/2010.• It repeals all prev...
I RISH A RBITRATION A CT                                    2010                Layout:                 1. Main Body of Ac...
S IGNIFICANT D EVELOPMENTS    UNDER THE “2010 A CT ”       Domestic vs International       Single Arbitration Judge    ...
A RBITRATION IN IRELAND                                                                      TODAY• Action is now self con...
ATTRACTIVENESS                                        OF I RELAND   AS AN ARBITRATION VENUE 2011 W&L LAW SYMPOSIUM ON INTE...
A W INNING C OMBINATION1.      Model Law2.      Common Law3.      English Speaking4.      Signatory of the New York Conven...
M ODEL L AW       •   Party Autonomy       •   Limited Judicial Intervention       •   Modern outlook       •   Familiarit...
O THER N OTABLE F EATURES•   Section 22: Full immunity•   Section 13: Default No. of Arbitrators•Section 20: An arbitral t...
ATTRACTIVENESS OF THE                     I RISH C OURTS• Neutrality• Judicial Independence• Speedy and Efficient disposal...
P UBLIC P OLICY•   Irish courts completely accept the exceptional and limited    nature of the public policy exception to ...
W HY                IS I RELAND BETTER                                    THAN                  E NGLAND ?2011 W&L LAW SYM...
C OST         Ireland                                                      England• Courts will recognize                 ...
R ECOURSE A GAINST                     THE AWARD           Ireland       England• Grounds for setting aside an            ...
O THER L OGISTICAL                                               A DVANTAGES•   Modern Economy with exceptionally skilled ...
F UTURE L OOKS B RIGHT...   Outside Interest   Default Location for ICC Arbitration   Establishment of Arbitration Irel...
C HALLENGES                                     FACING I RELAND                        I.      Sole Customer Base         ...
I. S OLE C USTOMER B ASE      The Americans             WHY? :                    Ethnic ties/Irish-American community ...
II. C OMPETITION WITH LONDON2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
III. G LOBAL P ERCEPTION OF                   I RISH E CONOMY                           FUTURE OF THE EUROZONE?2011 W&L LA...
T HE B RUSSELS R EGULATION :                        A N I NTRO      The Brussels Regulation 44/2001/EC      Article 1(2)...
C HANGES AND C HALLENGES      European Commission has proposed to bring       arbitration-related court proceedings withi...
E UROPEAN C OMMISSION ’ S                            R EPORT      The Commission presented its report and a green       p...
W EST TANKERS D ECISION      Coleman J in the HC agreed granting the       injunction.       During the proceedings, All...
E FFECTS                        OF   W EST                                                                 TANKERS      T...
P ROPOSED S OLUTIONS                            G OING F ORWARD      Preservation the status quo.      Reversal of the e...
C ONCLUSION      Adoption of a modified form of the green paper       proposals      Under EU law Regulations have Direc...
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Arbitration In Ireland

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Arbitration In Ireland

  1. 1. E UROPE ’ S H IDDEN J EWEL : A N A RGUMENT FOR A RBITRATING IN I RELAND2011 W&L Law Symposium on International Commercial ArbitrationPresented By: Chris O’ Connell, Alice Ward, Roisin Costello, Eden Hoey, Benjamin Ersing
  2. 2. P RESENTATION F ORMATI. Arbitration in Ireland Pre -2010 (Chris) a) Roots and Influences of Modern Arbitration Laws in Ireland b) An Examination of those LawsII. The Arbitration Act 2010 (Alice)III. Attractiveness of Ireland as a Venue (Eden)IV. Challenges Facing Ireland (Ben)V. European Legislation Affecting Ireland (Róisín) 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  3. 3. R OOTS & I NFLUENCESBrehon Laws• Ancient Customary Celtic Laws• Governed by “Brehons”• Dealt with Issues before them: •Principles of Fairness •DurabilityEnglish Common Law •1698 ActNew York Convention •1980 Arbitration ActModel Law •1998 Arbitration Act 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  4. 4. T HE A RBITRATION A CTS1954 Arbitration Act • Influenced Heavily by English Arbitration Act 1950 • Governed Domestic Arbitration • Very Standard Procedures • Interesting Features: • Potential Interference of High Court • Employer/ Employee Arbitrations not under scope • Repealed in 2010 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  5. 5. T HE A RBITRATION A CTS1980 Arbitration Act • Main Features: • Mandatory Staying of Court Proceedings • Gave Effect to NY Convention of 1958 • Gave Effect to Washington Convention of 1965 • Repealed in 20101998 Arbitration (International Commercial) Act • Adopted UNCITRAL Model Law • Repealed in 2010 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  6. 6. I RISH A RBITRATION A CT 2010 Single most important development in Arbitration in Ireland to date• What brought about this change?• Significant arbitration figures who initiated this development• AG Dispute Resolution Symposium• Arbitration Bill 2008• Arbitration Act 2010• Significant developments brought about by the 2010 Act 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  7. 7. W HO BROUGHT ABOUT THIS CHANGE ?Klaus Reichert Nael G Bunni Michael Collins Dudley Solan Brian Hutchinson Michael Corrigan 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  8. 8. R ORY B RADY Attorney General 2002-2007Suggested that asymposium be organizedto examine whetherlegislative change wasneeded 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  9. 9. ATTORNEY G ENERAL’ S D ISPUTE R ESOLUTION S YMPOSIUM  Held on April 28, 2007  Engineers Ireland (IEI), Clyde Road, Dublin:  Panel  Michael Carrigan (VP IAA)  Michael Collins (President IAA)  Nael G Bunni (Former Chairman CIA)  Dudley Solan (CIA)  Brian Hutchinson (CIA) IAA – Irish CIA-Chartered Arbitration Institute of Irish Association 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION Arbitration
  10. 10. S UMMARY OF S YMPOSIUMGeneral consensus reached that great reform in Arbitration laws was necessary to promote Ireland as a modern venue for international arbitration.Findings: • 1954 Arbitration Act was out of date. • “Multi million dollar business” • “A system of appeal undermined the raison d’etre of arbitration.” 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  11. 11. I NTRODUCTION OF A RBITRATION B ILL 2008 ICCA opening ceremony (June 2008) that Taoiseach Brian Cowen announced a new bill on arbitration was ready to be presented to the Dáil Intervening period (2008 – 2010) was used by various interested bodies such as the Chartered Institute of Arbitrators, to make submissions to the draft legislation.2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  12. 12. 2008 B ILL A CCEPTED “The Desire for Finality will be met through this enactment…”Michael Collins, President IAA Paul Gallagher AG 2008-2011 “*This development+ was particularly marked by support from the Irish Government and the Attorney General, Paul Gallagher SC.” “A very welcome development as it incorporates international best practice into Irish law…. A very important positive step in establishing Ireland as an attractive option...” 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION Colm O Hoisin, Secretary IAA
  13. 13. A RBITRATION A CT 2010• Signed into law by thePresident 8/3/2010 and comesinto operation on 8/6/2010.• It repeals all previousarbitration legislation in Ireland.• The new legislation will applyto ALL arbitrations whichcommence in Ireland after 8 June2010 (retrospective affect) President Mary MacAleese 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  14. 14. I RISH A RBITRATION A CT 2010 Layout: 1. Main Body of Act Preliminary and General Substantive provisions of arbitration in Ireland Reference to Arbitration before Court 6 schedules attached to the act“Virtually pure 1. – UNCITRAL Model Law (2006) model law” 2. – New York Convention (1998) 3. – Washington Convention (1965) 4. – Geneva Convention (1927) Klaus Reichert 5. – Geneva Protocol (1923) – PRO IAA 6. – Amendments to other Acts 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  15. 15. S IGNIFICANT D EVELOPMENTS UNDER THE “2010 A CT ”  Domestic vs International  Single Arbitration Judge  “One Shot” Challenge  Case Stated Procedure  Reasons  Costs 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  16. 16. A RBITRATION IN IRELAND TODAY• Action is now self contained with limited access to the courts• Reduced right of appeal• No case stated procedure• Focus in is on PARTY AUTONOMY Killarney, Ireland• Standard legal regime applicable to domestic and international arbitration 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  17. 17. ATTRACTIVENESS OF I RELAND AS AN ARBITRATION VENUE 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  18. 18. A W INNING C OMBINATION1. Model Law2. Common Law3. English Speaking4. Signatory of the New York Convention 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  19. 19. M ODEL L AW • Party Autonomy • Limited Judicial Intervention • Modern outlook • Familiarity Entire text of the model law present in the Arbitration Act 20102011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  20. 20. O THER N OTABLE F EATURES• Section 22: Full immunity• Section 13: Default No. of Arbitrators•Section 20: An arbitral tribunal, unless otherwise agreedby the parties, can make an award requiring specificperformance of a contract• Section 18: Arbitrators have express power to awardcompound interest and security for costs• Section 17: Tribunal can order intermediary relief 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  21. 21. ATTRACTIVENESS OF THE I RISH C OURTS• Neutrality• Judicial Independence• Speedy and Efficient disposal of Arbitration relatedcourt applications •‘One Stop Shop’ Application to the High Court (s. 11) • Appointment of a Specialized Arbitration Judge s (9)2 • Commercial Court track record is excellent • Average time for disposal from commencement is 21 weeks• Arbitration cases are dealt with efficiently and withoutdelay 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  22. 22. P UBLIC P OLICY• Irish courts completely accept the exceptional and limited nature of the public policy exception to recognition and enforcement of the UNCITRAL Model Law• Expressly adopted U.S decision Parsons v Whittemore to the effect that enforcement should be denied on the basis of public policy only in the most exceptional cases• “The Public policy defense to an enforcement application is one which is of narrow scope. . . It extends only to a breach of the most basic concepts of morality and justice.” Brostrom Tankers v Factorias Volcano (2004) 2 IR 191 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  23. 23. W HY IS I RELAND BETTER THAN E NGLAND ?2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  24. 24. C OST Ireland England• Courts will recognize • Under section the UK whatever agreement the Arbitration Act, parties make regarding agreements or clauses costs. S (21)1 regarding costs are• This includes the decision unenforceable. of each party to bear their own cost • Section 60 – such irrespective of the agreement will be outcome rendered void unless made after the dispute has arisen. 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  25. 25. R ECOURSE A GAINST THE AWARD Ireland England• Grounds for setting aside an • Section 69 of the UK Arbitration Act: Appeals onaward (s 34). In accordance with point of law are permitted.the NY Convention• “ One stop shop only!”: • Potential for becoming• Parties may only challenge meshed in a piece of litigationsubject to one Court only – The for a long period of timeHigh Court. following the arbitration• No appeals on point of lawtaken. • Lack of finality• Switzerland has a similarapproach 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  26. 26. O THER L OGISTICAL A DVANTAGES• Modern Economy with exceptionally skilled personnel and infrastructure• Strong transport network• Dublin is a small city so no office, hotel, restaurant is too far away• First class hearing room and conference facilities• Best stenographers in the world• Best lawyers in the world• Undoubtedly the best bars! 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  27. 27. F UTURE L OOKS B RIGHT... Outside Interest Default Location for ICC Arbitration Establishment of Arbitration Ireland Future Focus See You In Dublin! 2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  28. 28. C HALLENGES FACING I RELAND I. Sole Customer Base II. Competition with London III. Global Perception of Irish Economy • Why? • Potential Remedies?2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  29. 29. I. S OLE C USTOMER B ASE The Americans  WHY? :  Ethnic ties/Irish-American community  Large presence of US Corporations in Ireland  Common Language Solution? Market to Developing Countries2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  30. 30. II. C OMPETITION WITH LONDON2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  31. 31. III. G LOBAL P ERCEPTION OF I RISH E CONOMY FUTURE OF THE EUROZONE?2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  32. 32. T HE B RUSSELS R EGULATION : A N I NTRO The Brussels Regulation 44/2001/EC Article 1(2) provides:"The Regulation shall not apply to:...(d) arbitration.” Article 1(2)(d) is known as the "arbitration exclusion".2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  33. 33. C HANGES AND C HALLENGES European Commission has proposed to bring arbitration-related court proceedings within the scope of the Brussels Regulation West Tankers decision and its consequences2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  34. 34. E UROPEAN C OMMISSION ’ S R EPORT The Commission presented its report and a green paper proposing reforms to the Regulation on the 21st of April 2009. Subsequent to this review, Professors Hess, Pfeiffer and Schlosser were commissioned to prepare a study into the workings of the Brussels Regulation-the Heidelberg Report2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  35. 35. W EST TANKERS D ECISION Coleman J in the HC agreed granting the injunction. During the proceedings, Allianz SpA questioned whether it would be consistent with the Brussels Regulation for an English court to grant an injunction restraining proceedings in another Member State. House of Lords suggested that an injunction would not be inconsistent with the Regulation. However they referred question to the ECJ for determination.2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  36. 36. E FFECTS OF W EST TANKERS This undermines the concept of party autonomy as regards choice of seat, denying some of the benefit of ‘arbitration-friendly’ jurisdictions where courts limit any pre-award review to a minimum. It is also inconsistent with the concept of Kompetenz-kompetenz.2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  37. 37. P ROPOSED S OLUTIONS G OING F ORWARD Preservation the status quo. Reversal of the effects of West Tankers. Implementation of the green papers approach on the basis of the Heidelberg report. Implementation of a modified version of the green papers approach.2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION
  38. 38. C ONCLUSION Adoption of a modified form of the green paper proposals Under EU law Regulations have Direct Effect on all member states As a dualist system Ireland will have to enact legislation incorporating any new regulation into law2011 W&L LAW SYMPOSIUM ON INTERNATIONAL COMMERCIAL ARBITRATION

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