The Irish courts have long been supportive of the arbitral process. The vast majority of challenges to the award of an arbitrator are rejected and the strong presumption is in favour of upholding the award.

With thanks to McCann FitzGerald for their contribution to the Guide. 

1. OVERVIEW

There has been a good history of arbitration being supported in Ireland.  The Arbitration Act 1954 was passed “to make further and better provision in respect of arbitrations” and gave effect to the 1927 Geneva Convention on the execution of foreign arbitral awards. The Arbitration Act 1980 gave effect to the 1958 New York Convention on the recognition and enforcement of foreign arbitral awards (New York Convention) and certain provisions of the 1965 Washington Convention on the settlement of investment disputes (Washington Convention). The Arbitration (International Commercial) Act 1998 adopted the UNCITRAL Model Law (Model Law) for international commercial arbitration. However, the 1954, 1980 and 1998 Acts have been repealed and the legislation which governs arbitration proceedings in Ireland now is the Arbitration Act 2010 (2010 Act).

2. SCOPE OF APPLICATION AND GENERAL PROVISIONS OF 2010 ACT

2.1.1 The 2010 Act applies to all arbitrations, both domestic and international. The 2010 Act adopts the Model Law, as amended on 7 July 2006. The Model Law is reproduced in its entirety as a schedule to the Act. Section 6 of the 2010 Act provides that, subject to the provisions of that Act, “the Model Law shall have the force of law in the State”. The 2010 Act (and, through it, the Model Law) applies to all arbitrations commenced in Ireland on or after 8 June 2010. It restates that effect is given to the 1923 Geneva Protocol and 1927 Geneva Convention, the 1958 New York Convention and the 1965 Washington Convention.

2.1.2 The 2010 Act does not apply to: 

  • disputes regarding the terms or conditions of employment or the remuneration of employees;
  • arbitrations conducted under Section 70 of the Industrial Relations Act 1946 (certain trade disputes);
  • arbitrations conducted by a property arbitrator appointed under Section 2 of the Property Values (Arbitration and Appeals) Act 1960; and
  • certain consumer disputes.

3. THE ARBITRATION AGREEMENT

3.1 Definitions

3.1.3 An arbitration agreement is defined as “[a]n agreement … to submit to arbitration … disputes which have arisen or which may arise … in respect of a defined legal relationship whether contractual or not”.

3.2 Formal requirements

3.2.1 Under the 2010 Act, Option 1 of Article 7 of the Model Law applies to an arbitration agreement. The agreement must be in writing. This may be in the form of an arbitration clause in a contract or in the form of a separate agreement. 

3.2.2 An agreement will be in writing if its content is recorded in any form, notwithstanding that the arbitration agreement or contract may have been concluded orally, by conduct or other means. “In writing” includes electronic data interchange, email, telegram, telex or telecopy. An arbitration agreement is also in writing if it is contained in an exchange of statements of claim and defence in which the existence of an agreement is alleged by one party and not denied by the other. An arbitration agreement may also be incorporated by reference. 

3.3 Doctrine of separability

3.3.1 The doctrine of separability is not set out in Irish arbitration legislation but has been recognised by the Irish courts.  

4. COMPOSITION OF THE ARBITRAL TRIBUNAL

4.1 The constitution of the arbitral tribunal 

4.1.1 The parties may choose their arbitrator. They are free to decide whether to have one or more arbitrators. If they cannot agree on this point, Section 13 of the 2010 Act stipulates that the number of arbitrators shall be one. Given that it can be difficult to agree upon the identity of the arbitrator, especially when a dispute has arisen between the parties, it is sensible to include a mechanism for the appointment by an agreed nominating professional body, stipulating that the parties will be bound by the choice made by that body. If the parties’ method for selecting an arbitrator is ultimately unsuccessful, the High Court will, under Article 11 of the Model Law, appoint the arbitrator on application to it.

4.2 Challenge to an arbitrator

4.2.1 The arbitrator should not be biased. Article 12 of the Model Law provides that where a person is approached to act as an arbitrator, he or she must disclose any circumstances likely to give rise to justifiable doubts as to his or her impartiality or independence. The duty of disclosure is an ongoing one and an arbitrator must disclose any such circumstances throughout the proceedings. An arbitrator may be challenged if there are circumstances that give rise to justifiable doubts as to his or her impartiality or independence. An arbitrator may also be challenged if he or she does not possess the qualifications agreed upon by the parties. 

4.2.2 A party may challenge an arbitrator appointed by that party, or in whose appointment that party has participated, only for reasons of which that party becomes aware after the appointment has been made. The arbitrator’s decision in respect of the challenge can itself be challenged by application to the High Court under Article 13 of the Model Law. The decision of the High Court is not subject to appeal.

4.3 Arbitration fees

4.3.1 Under Section 21(1) of the 2010 Act, the parties may make such provision with regard to the costs of the arbitration as they see fit. The parties may, therefore, agree in advance of any dispute as to how costs will be dealt with – for example, that each side will bear its own costs. There is an exception to this general rule for consumers.

4.3.2 An agreement to arbitrate subject to the rules of an arbitral institution is deemed to be an agreement to accept the rules of that institution as to the costs of the arbitration.

4.3.3 If there is no agreement under Section 21(1), or if the consumer exception applies, the tribunal must determine the costs as it sees fit.  In a domestic arbitration, the parties can also request that the costs be taxed (measured by an expert court officer).

4.3.4  When determining costs, the tribunal must specify the grounds on which it acted, the items of recoverable costs, fees or expenses, as appropriate, and the amount referable to each, as well as by whom and to whom they must be paid.  “Costs” includes costs as between the parties, and the fees and expenses of the arbitral tribunal including any expert appointed by the tribunal.

4.3.5 In a domestic arbitration, the general principle is that the costs are at the discretion of the arbitrator, who will exercise his or her discretion as would a court, which is that costs usually “follow the event”. This means that the loser pays in the absence of some reason not to make such an order, such as the existence of an effective Calderbank offer  for an amount greater than the amount awarded by the arbitrator, or where the successful party grossly exaggerates its claim.

4.4 Third party funding

4.4.1 In Ireland, the offences and torts of maintenance and champerty have resulted in an effective prohibition on third-party funding of litigation save in limited circumstances such as where the funder has a legitimate interest in the proceedings so as to justify an interference in the proceedings. Maintenance may be defined as the improper provision of support to litigation in which the supporter has no direct or legitimate interest.  Champerty is an aggravated form of maintenance and occurs when a person maintaining another’s litigation stipulates for a share of the proceeds of the action or suit.

4.4.2 Section 124 of the Courts and Civil Law (Miscellaneous Provisions) Act 2023, which at the date of writing has yet to be commenced by way of the requisite Ministerial Order, will insert a new Section 5A into the 2010 Act and will provide that the offences and torts of maintenance and champerty will not apply to dispute resolution proceedings. “Dispute resolution proceedings” for the purpose of Section 124 means international commercial arbitration, any proceedings arising out of an international commercial arbitration before the High Court, any appeal from a decision of the High Court arising out of an international commercial arbitration, and mediation or conciliation proceedings) arising out of an international commercial arbitration. This legislation will address a significant obstacle to third-party funding of certain arbitration proceedings in Ireland. However, it will not apply to arbitration proceedings which are not considered “international commercial arbitration” as that term is defined under Article 1 of the Model Law.

4.4.3 Section 5A of the 2010 Act will also provide that the Minister for Justice may, by regulation, prescribe criteria relating to transparency in relation to funders and recipients, and for third-party funding contracts. While such criteria have not yet been prescribed, Section 5A (3) will provide that where a third-party funding contract meets any such criteria, it will not be held to be contrary to public policy, illegal or void.

4.5 Arbitrator immunity

4.5.1 Under Section 22 of the 2010 Act, an arbitrator “shall not be liable in any proceedings for anything done or omitted in the discharge or purported discharge of his or her functions”. This immunity extends to any agent, employee, advisor or expert appointed by the arbitrator. Prior to the enactment of the 2010 Act, an arbitrator could be sued in respect of the exercise of the arbitral function where it could be shown that the arbitrator acted in bad faith. It is unclear whether Section 22 has altered that position.

5. JURISDICTION OF THE ARBITRAL TRIBUNAL 

5.1 Competence to rule on jurisdiction 

5.1.1 An arbitrator is permitted to rule on the question of his or her own jurisdiction pursuant to Article 16(1) of the Model Law. This provides that the “arbitral tribunal may rule on its own jurisdiction”, which includes any questions regarding the existence or validity of the arbitration agreement, thereby granting the arbitrator primary responsibility for deciding whether he or she has jurisdiction to decide the dispute. However, this power is not final as an appeal can be made to the High Court under Article 16(3). There is no subsequent appeal from the High Court’s decision.

5.1.2 A plea that the arbitral tribunal does not have jurisdiction must be raised no later than the submission of the statement of defence. A party is not precluded from raising such a plea by the fact that it has appointed, or participated in the appointment of an arbitrator. 

5.1.3 In Mayo County Council v Joe Reilly Plant Hire Ltd,   it was held that where the existence of an arbitration clause is not in dispute, the courts will be very slow to interfere with the arbitrator’s ruling on his or her own jurisdiction. In Achill Sheltered Housing Association CLG v Dooniver Plant Hire Ltd   the High Court held that a preliminary ruling by the arbitrator that he had been validly appointed came within the scope of Article 16(3). If the arbitrator was incorrect in determining that he had been validly appointed, he had no locus standi to decide a challenge to his jurisdiction, let alone to arbitrate a dispute between the parties.

5.2 Power to order interim measures

5.2.1 Under Article 17 of the Model Law, unless the parties otherwise agree, the arbitrator can order interim measures of protection as may be considered necessary and can make a preliminary order. The arbitrator can order a party to:

  1. maintain or restore the status quo pending the termination of the dispute;
  2. take action that would prevent, or refrain from taking action that is likely to cause, current or imminent harm or prejudice to the arbitral process itself;
  3. provide a means of preserving assets out of which a subsequent award may be satisfied; 
    or
  4. preserve evidence that may be relevant and material to the resolution of the dispute.

5.2.2 The arbitrator can make any of these orders without the assistance of the court. However, Article 9 of the Model Law, along with Section 10 of the 2010 Act, provide that, before or during arbitral proceedings, a party can also request an interim measure of protection from the High Court. Unless otherwise agreed, the court cannot rely on Article 9 of the Model Law to order discovery of documents or security for costs; those are matters for the arbitrator. However, the arbitrator’s power to order security for the costs is qualified. For example, the arbitrator may not order security solely because an individual is resident, domiciled or carrying on business outside Ireland or, in respect of a corporate, it is established, managed or controlled outside Ireland.

6. CONDUCT OF PROCEEDINGS

6.1 Commencement of arbitration

6.1.1. Under Section 7 of the 2010 Act, arbitral proceedings shall be deemed to be commenced on:

  • the date on which the parties to an arbitration agreement so provide as being the commencement date for the purposes of the commencement of arbitral proceedings under the agreement; or 
  • where no provision has been made by the parties as to commencement of proceedings, the date on which a written communication containing a request for the dispute to be referred to arbitration is received by the respondent.
    This provision should be read in conjunction with Section 74 of The Statute of Limitations 1957 which provides further details.

6.2 General procedural principles

6.2.1 Article 19 of the Model Law provides that the parties may set their own procedure. The parties may determine the procedures they wish to follow by the adoption in the arbitration agreement of specific institutional or trade association rules. For example, parties may agree all the procedures and provide an agreed note to the arbitrator. 

6.2.2 Failing agreement, the arbitrator will conduct the arbitration in such manner as he or she considers appropriate. Where the arbitrator sets the procedure, this will generally be done at a procedural meeting between the parties and the arbitrator, following which the arbitrator will issue an order for directions. This meeting can be conducted in person or remotely, for example, by telephone.  

6.2.3 Chapter V of the Model Law sets out provisions on the conduct of arbitral proceedings covering such matters as equal treatment, determination of rules of procedure, place of arbitration, commencement, language, statements of claim and defence, hearings and written proceedings, default of a party, experts appointed by the tribunal and court assistance in taking evidence.  

6.2.4 Arbitrators are expected to treat both parties equally, with impartiality and to give each party the opportunity to put forward their case. The maxims audi alteram partem and nemo index in causa sua (“always hear both sides” and “no-one should be a judge in his own cause” respectively) are basic principles of fair procedures which arbitrators should follow. Article 18 of the Model Law sets out that obligation in respect of fair procedures in express terms.

6.2.5 Section 14 of the 2010 Act states that unless the parties agree otherwise, the arbitrator can direct that a party to an arbitration agreement or a witness be examined on oath or affirmation, and the tribunal can administer oaths for that purpose. Subject to the agreement of the parties, the tribunal may also: order consolidation of arbitral proceedings or concurrent hearing where the parties agree to the making of such an order (Section 16); award interest (Section 18(2)); order security for costs (Section 19); require specific performance of a contract (save in respect of land) (Section 20); and determine costs (Section 21(3)). The arbitrator is also expected to render a reasoned award in writing. 

6.3 Place and language of arbitration

6.3.1 Under Article 20(1) of the Model Law, the parties are free to agree on the place of arbitration. Failing such agreement, the place of arbitration will be determined by the arbitrator having regard to the circumstances of the case, including the convenience of the parties.

6.3.2 Notwithstanding Article 20(1), the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of goods, other property or documents.

6.3.3 There is usually no reason why part or all of the arbitration cannot be conducted outside Ireland if, for example, witnesses are resident abroad. This will not affect the law of the seat.

6.3.4 Under Article 22 of the Model Law, the parties are free to agree on the language(s) to be used in the arbitral proceedings. Failing such agreement, the arbitral tribunal will determine the language(s) to be used in the proceedings. In Ireland, the official languages are Irish and English. As is the case in litigation, an arbitration can be conducted in either language, although English is the norm. 

6.4 Multi-party issues 

6.4.1 Under Irish law, an arbitral tribunal can only assume jurisdiction over individuals or entities where the parties so agree. Section 16 of the 2010 Act stipulates that an arbitrator may not direct that separate proceedings be consolidated or heard together without the agreement of the parties. 

6.4.2 In Maguire v Motor Services Ltd t/a MSL Park Motors,  the two plaintiffs commenced proceedings seeking damages from the defendants for a breach of contract relating to the purchase of a new motor vehicle. There was a binding arbitration agreement between one plaintiff, the owner of the vehicle and the motor dealer who had supplied it. Proceedings between them had been stayed to allow for arbitration. The issue was whether, by virtue of this arbitration agreement, the court should also stay proceedings between that plaintiff and the vehicle manufacturer, and as between the second plaintiff and the vehicle manufacturer. 

6.5 Oral hearings

6.5.1 Article 24 of the Model Law provides that, subject to any contrary agreement by the parties, the tribunal shall decide whether to hold oral hearings, or whether the proceedings shall be conducted on the basis of documents and/or materials. If there is any question about conflicting evidence, an oral hearing is preferable so that witnesses can be examined and cross-examined.

6.5.2 Unless the parties have agreed that no oral hearings will be held, the arbitral tribunal must hold an oral hearing at an appropriate stage of the proceedings, if requested by a party.

6.6 Default by one of the parties

6.6.1 An arbitrator may decide to proceed with a hearing even if one of the parties absents itself. Under Article 25 of the Model Law, unless otherwise agreed by the parties, if, without showing sufficient cause, any party fails to appear at a hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the award on the evidence before it. The arbitrator should exercise caution here and must be satisfied that the absent party had sufficient notice of the hearing.

6.7 Evidence generally

6.7.1 Witnesses will usually give evidence on oath or affirmation. All the evidence should be taken in the presence of the arbitrator and the parties unless one of the parties, knowing that evidence will be given, is voluntarily absent without good excuse, is in deliberate default or waives its right to attend.

6.7.2 The admissibility of evidence and the weight to be given to a particular piece of evidence are matters for the arbitral tribunal. However, all parties should be given a reasonable opportunity to present necessary evidence and make submissions on it. An arbitral award may be set aside by the court under Article 34(2)(a)(ii) of the Model Law if a party was unable to present his case.

6.8 Appointment of experts

6.8.1 Article 26 of the Model Law provides that, unless otherwise agreed by the parties, the arbitral tribunal: 

  1. may appoint one or more experts to report to it on specific issues to be determined by it; and 
  2. may require a party to give the expert any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for his inspection.

6.8.2 Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal considers it necessary, the expert shall, after delivery of his or her written or oral report, participate in a hearing where the parties have the opportunity to put questions to that expert and to present expert witnesses in order to testify on the points at issue.

6.9 Confidentiality

6.9.1 Arbitration proceedings in Ireland are usually conducted in private. There is no stipulation in the 2010 Act that arbitration proceedings should be confidential or that the parties are subject to an implied duty of confidentiality. However, there is English authority (which is of persuasive effect in Ireland) to the effect that the existence and content of arbitration proceedings usually remain confidential. The implied duty of confidentiality was affirmed by the Court of Appeal of England and Wales in Ali Shipping Corp v Shipyard Trogir.  It recognised a number of exceptions to the duty, such as consent, court order, or leave of the court. Where the preservation of the confidentiality of the arbitration is crucial to the parties, it is advisable to explicitly detail the extent of the obligation in the arbitration clause.

6.10 Court assistance in taking evidence

6.10.1 Under Article 27 of the Model Law, the arbitral tribunal or a party with the approval of the arbitral tribunal may request the High Court for assistance in taking evidence. 

7. MAKING OF THE AWARD AND TERMINATION OF PROCEEDINGS

7.1 Timing, form, content and notification of an award

7.1.1 Under Article 31 of the Model Law, the award must be in writing and must be signed by the arbitrator. If there is more than one arbitrator, a majority of the arbitrators should sign the award, (provided that the reason for any omitted signature is stated). The award should state the reasons upon which it is based, unless the parties have agreed that no reasons will be given. The award must also state its date and the place of arbitration. Copies of the award must be delivered to the parties. If an award also deals with costs, the tribunal must also deal with the requirements set out in Section 21 of the 2010 Act.  

7.1.2 In a domestic arbitration, the arbitrator will usually receive payment of any outstanding fees before making the award available to the parties. This is normally done by writing to the parties to inform them that the award can be taken up upon the payment of any unpaid fees and expenses. As both parties will usually be jointly and severally liable for the arbitrator’s fees and expenses, if they cannot agree to divide the fees as an interim approach, one or other of them will usually pay the outstanding amounts and obtain the award. The issue of costs (including who is ultimately responsible for the arbitrator’s fees and expenses), if not addressed in the award, will be dealt with subsequently at either a hearing or by submissions or both, leading to an award on costs.

7.1.3 Where there is an undue delay in the delivery of an award, either party can apply to the High Court pursuant to Section 9(1) of the 2010 Act and Article 14 of the Model Law to terminate the mandate of the arbitrator for failure to render the arbitral award without undue delay.

7.2 Settlement

7.2.1 Article 30 of the Model Law provides that if, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal must terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal (for example, where the arbitrator suspected there was an issue of fraud), record the settlement in the form of an arbitral award on agreed terms.

7.2.2 An award on agreed terms must be made in accordance with the provisions of Article 31, which deals with the form and content of an award, and must state that it is an award. It has the same status and effect as any other award on the merits of the case. 

7.3 Interest

7.3.1 Under Section 18(1) of the 2010 Act, the parties to an arbitration agreement may agree on the arbitral tribunal’s powers regarding the award of interest. Unless otherwise agreed, Section 18(2) permits the tribunal to award simple or compound interest from the dates agreed, at the rates and with the rests that it considers to be fair and reasonable. It can determine such interest to be payable on all or part of the award in respect of any period up to the date of the award, or on all amounts claimed in the arbitration and outstanding at the commencement of the arbitration but paid before the award in respect of any period up to the date of payment. Section 18 is without prejudice to any other power of the arbitral tribunal to award interest.

7.4 Termination of the proceedings

7.4.1 Article 14 of the Model Law states that if an arbitrator becomes unable to perform his or her functions or fails to act without undue delay for other reasons, his or her mandate terminates if he or she withdraws from his office or if the parties agree on the termination. Otherwise, if there is a controversy in relation to any of these grounds, any party may request the court to decide on the termination of the mandate. Where an arbitrator’s mandate terminates, a substitute arbitrator is appointed according to the rules that applied to the appointment of the arbitrator being replaced.

7.5 Effect of the award

7.5.1 The arbitrator is functus officio once the final award has been made and published to the parties. The arbitrator has no authority to deal with the matter any further. A valid award is a bar to fresh arbitration proceedings in relation to issues determined by the award.

7.5.2 Section 23(1) of the 2010 Act deals with awards (other than awards under the Washington Convention). It states that an arbitral award shall be enforceable in Ireland either by action or by leave of the High Court, in the same manner as a judgment or order of that court with the same effect. The award shall, unless otherwise agreed by the parties, be treated as binding for all purposes on the parties between whom it was made and may be relied on by any of those parties by way of defence, set-off or otherwise in any legal proceedings in Ireland. The 2010 Act expressly states that Section 23 does not affect the recognition or enforcement of an award under the Geneva Convention, the New York Convention or the Washington Convention.

7.6 Correction, clarification and issue of a supplemental award

7.6.1 Under Article 33 of the Model Law, within 30 days of receipt of the award, unless another period of time has been agreed by the parties, a party, on notice to the other party, may request the arbitral tribunal to correct any errors in computation, any clerical or typographical errors or any errors of similar nature in the award. Also, the tribunal may do this of its own initiative within 30 days of the date of the award.

7.6.2 In addition, if the parties agree, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award within the same timeframe. 

7.6.3 If the arbitral tribunal considers the request to be justified, it must make the correction or give the interpretation within 30 days of receipt of the request. The interpretation then forms part of the award.

7.6.4 Unless otherwise agreed by the parties, a party, with notice to the other party, may request, within 30 days of receipt of the award, the arbitral tribunal to make an additional award in relation to claims presented in the arbitral proceedings but omitted from the award. If the arbitral tribunal considers the request to be justified, it will make the additional award within 60 days.

7.6.5 Any time limits which apply to action to be taken by an arbitral tribunal can be extended by that tribunal. The provisions of Article 31, dealing with the form and contents of an award, apply to a correction or interpretation of the award or to an additional award. 

8. ROLE OF THE COURTS

8.1 Jurisdiction of the courts

8.1.1 The High Court is the court specified for the purposes of Article 6, the relevant court for the purposes of Article 9, and the court of competent jurisdiction for the purposes of Articles 17H, 17I, 17J, 27, 35 and 36 of the Model Law. Order 56 of the Rules of the Superior Courts sets out the procedure for applications to that court in relation to an arbitration.

8.2 Stay of court proceedings

8.2.1 Where Irish court proceedings have been commenced and an arbitration agreement exists, a party may apply under Article 8 of the Model Law to stay those proceedings. Article 8(1) provides that:

"[a] court before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so requests not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration unless it finds that the agreement is null and void, inoperative or incapable of being performed."

8.2.2 The Irish courts in this jurisdiction are supportive of the arbitral process. If there is an arbitration clause and the dispute is within the scope of the arbitration agreement, and there is no finding that the agreement is null and void, inoperative or incapable of being performed, then a stay must be granted.   

8.2.3 Section 11(a) of the 2010 Act stipulates that there is no appeal from any court determination of a stay application, pursuant to Article 8(1) of the Model Law.

8.3 Preliminary ruling on jurisdiction

8.3.1 As mentioned above, an arbitrator is permitted to rule on the question of his or her own jurisdiction pursuant to Article 16(1) of the Model Law. There is an appeal to the High Court under Article 16(3), provided that the application is made within the period prescribed in that Article.

8.4 Interim protective measures

8.4.1 Article 9 of the Model Law, along with Section 10 of the 2010 Act, provide that, before or during arbitral proceedings, a party can also request an interim measure of protection from the High Court. Unless otherwise agreed, the court cannot, however, order discovery of documents or security for costs; those are matters for the arbitrator. Subject to those exceptions, the High Court has the same powers to order such measures as it has in any other action or matter before it.

8.5 Obtaining evidence and other court assistance

8.5.1 Unless otherwise agreed, the High Court cannot rely on Article 9 of the Model Law to order discovery of documents. This is a matter for the arbitrator. Orders for the preservation of evidence may also be ordered by the arbitrator unless otherwise agreed by the parties. The High Court is the competent court for the purposes of Articles 17H and 17J of the Model Law in relation to recognition and enforcement of an interim measure issued by an arbitral tribunal or the issuing of any interim measure in relation to arbitration proceedings.

9. CHALLENGING AND APPEALING AN AWARD THROUGH THE COURTS

9.1 Applications to set aside an award

9.1.1 There is no appeal against an arbitral award under the 2010 Act. The only remedy is an application to the High Court to set aside the award. The limited grounds upon which such an application may be made are set out at Article 34(2) of the Model Law as follows:

" (a) the party making the application furnishes proof that:

  1. the party to the Arbitration Agreement referred to in Article 7 was under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of this State;
  2. the party making application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case;
  3. the award deals with the dispute not contemplated by or not falling within the terms of the submission to arbitration, or contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the award which contains decisions on matters not submitted to arbitration may be set aside; or
  4. the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with the provision of this Law from which the parties cannot derogate, or failing such agreement, was not in accordance with this Law; or

(b) the court finds that:

  1. the subject matter is not capable of settlement by arbitration under the law of this State; or
  2. the award is in conflict with the public policy of this State."

9.1.2 If it is satisfied that any of these grounds are established, the High Court can set aside the award. An applicant must bring its application within one of the grounds in order to succeed, Snoddy v Mavroudis.  In Delargy v Hickey, the court held that these grounds “are to be construed narrowly and the onus in this regard is on the moving party”.  In Hoban v Coughlan, it was stated that the basis on which an award can be set aside under Article 34 of the Model Law is “very limited and it is a jurisdiction which the court should only exercise sparingly”.  The challenged decision must be one that was made on the merits of the case, and it must meet the formal requirements of Article 31. This can include a partial award if these criteria are met but procedural rulings and orders made during the course of the arbitration are not amenable to challenge under Article 34, FBD Insurance Plc v Samwari Ltd.

10. RECOGNITION AND ENFORCEMENT OF AWARDS

10.1 The rules on the enforcement of domestic and non-domestic awards are the same in accordance with Article 35 of the Model Law. Article 36 applies in relation to the grounds for refusing recognition or enforcement of an award. The Irish courts are supportive in relation to the enforcement of arbitral awards. Most challenges to arbitral awards are rejected, and there is a strong presumption in favour of upholding the award. Ireland has ratified the New York Convention and no reservations have been entered. The relevant legislation is now the 2010 Act.

11. SPECIAL PROVISIONS AND CONSIDERATIONS

11.1 Consumers

11.1.1 Under the 2010 Act, a “consumer” means a natural person, whether in the State or not, who is acting for purposes outside the person’s trade, business or profession.

11.1.2 Section 31(1) of the 2010 Act provides that a party to an arbitration agreement who is a consumer will not be bound (unless he or she otherwise agrees at any time after the dispute has arisen) by an arbitration agreement where:

  • the agreement between the parties contains a term which has not been individually negotiated concerning the requirement to submit to arbitration disputes which may arise, and
  • the dispute which has arisen between the parties to the agreement involves a claim for an amount not exceeding €5,000. Section 31(2) clarifies that a “consumer” does not include an amateur sportsperson who, in his or her capacity as such, is a party to an arbitration agreement that contains a term concerning the requirement to submit to arbitration.

11.1.3 Section 30 of the 2010 Act provides that the Act does not apply to an arbitration under an arbitration agreement providing for the reference to, or the settlement by, arbitration of any question relating to the terms or conditions of employment or the remuneration of any employee. This includes persons employed by or under the State or local authorities. The Act also does not apply to an arbitration under Section 70 of the Industrial Relations Act 1946. This relates to certain trade disputes.

11.2 Employment law

11.2.1 Section 30 of the 2010 Act provides that the Act does not apply to an arbitration under an arbitration agreement providing for the reference to, or the settlement by, arbitration of any question relating to the terms or conditions of employment or the remuneration of any employee. This includes persons employed by or under the State or local authorities. The Act also does not apply to an arbitration under Section 70 of the Industrial Relations Act 1946. This relates to certain trade disputes.