Ireland is a destination of choice for some of the largest companies in the world, which is why dispute resolution mechanisms must be well regulated in case commercial litigations arise. Financial litigation has undergone significant changes during the last ten years. In 2004 the Irish Company Law Reform Review Group and the Committee on Court Practice and Procedure have made certain proposals to the High Court. The Irish Commercial Court has then established a Commercial List through which a number of classes of dispute would be tried by the Court, among them financial claims over 1,000,000 euros. These new regulations establish specific provisions on how commercial litigation cases are to be managed, the time limits these disputes must be concluded and decisions must be enforced.
International companies with an established presence in Ireland usually refer to home forums and arbitration in order to settle any commercial issues.
Most banking litigation cases in Ireland are dealt with by the Commercial Court which is now part of the High Court. The High Court has jurisdiction over all monetary claims exceeding the value of 75,000 euros. The Commercial Court tries only banking litigation cases exceeding 1,000,000 euros which are included in one of the prescribed categories of procedures. The Commercial Court Rules encourage Irish companies and civilians involved in financial litigation cases to agree on as many issues as possible before appearing in court.
Even if some banking litigation cases are still tried by the Commercial Court, most Irish companies have started to appeal to arbitration for settling their disputes. Arbitration is recognized by the Irish legislation as an alternative dispute resolution (ADR) mechanism and has also been amended in 2010 in order to allow parties to use these types of mechanisms. The High Court also acknowledges the parties’ rights to engage in arbitration proceedings in case of financial litigation in Ireland. In 2011, Ireland also enforced the European Communities Regulations, also known as the Mediation Regulations, in order to allow companies in Ireland to use mediation in cross-border disputes.
For details about alternative dispute resolution in banking litigation matters you may contact our specialists in Ireland.