| New Arbitration Act allows judges to send parties out to mediation |
The Arbitration Act 2010 was passed into law on 8 June 2010, bringing Ireland’s Alternative Dispute Resolution (ADR) regime into line with international standards by applying the UNCITRAL (United Nations Commission on International Trade Law) Model Law.
The UNCIITRAL Model Law is used in 64 countries worldwide.
The Arbitration Act 2010 allows the High Court and the Circuit Court to adjourn court proceedings and to send the parties out to mediation or arbitration, essentially instructing the parties to go away and sort out their differences outside the court.
This approach has been used to great effect in Ireland’s Commercial Court since 2004 and the High Court and Circuit Court are now set to emulate this success.
Mediation has been used in several high profile cases such as Charlton V Kenny when Ms Justice Clarke suggested to Pat Kenny and the Charltons that they mediate their dispute over Gorse Hill in Dalkey.
Then, the judge could only suggest or encourage mediation, the new Act now allows a judge to compel the parties to engage in ADR. The new Act gives greatly increased powers to arbitrators and mediators and limits the ways in which the courts can intervene.
Disputing parties can agree in advance how the costs of the dispute resolution will be allocated and when and how the costs are to be paid.
The new Act requires arbitrators to give reasons for their decisions and awards, unless the parties expressly agree otherwise. Every business should review any arbitration clauses in its contracts in light of the new legislation.
We strongly advise that no individual or company goes to ADR without good legal representation. The opposing side will be sure to have their solicitor present. You should have yours present too.
Be sure to contact us before engaging in mediation, arbitration, conciliation or any form of ADR. |
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