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Arbitration (International Commercial) Act,


An Act to enable effect to be given in the State to the UNCITRAL Model Law on International Commercial Arbitration (as adopted by the United Nations Commission on International Trade Law on 21 June 1985) and to amend the Arbitration Acts, 1954 and 1980, and to make further and better provision in respect of arbitrations. [20 May 1998]Be it enacted by the Oireachtas as follows:
Part I. Preliminary and General
1. SHORT TITLE AND COLLECTIVE CITATION
(1)  This Act may be cited as the Arbitration (International Commercial) Act, 1998.
(2)  The Arbitration Acts, 1954 and 1980 and this Act may be cited together as the Arbitration Acts, 1954 to 1998.
2. REFERENCES
In this Act -
(a)  A reference to any other enactment is to that enactment as amended by or under any other enactment including this Act, unless the context otherwise requires,
(b)  a reference to a section, Part or Schedule is to a section or Part of, or Schedule to, this Act unless it is indicated that reference to some other enactment is intended,
(c)  a reference to a subsection is to a subsection of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended, and
(d)  a reference to an Article is to an Article of the Model Law.
Part II. International Commercial Arbitration
3. INTERPRETATION OF THIS PART
(1)  In this Part, unless the context otherwise requires
“arbitration agreement” means an arbitration agreement concerning international commercial arbitration;
“award” includes an interim award;
“international commercial arbitration” means arbitration to which the Model Law applies;
“the Model Law” means the UNCITRAL Model Law on International CommercialArbitration (as adopted by the United Nations Commission on International Trade Law on 21 June 1985), the text in the English language of which is set out in the Schedule.
(2)  Terms and expressions that are used in this Part and defined in the Model Law have the same meaning in this Part as in that Law unless the context otherwise requires.
4. ADOPTION OF MODEL LAW
Subject to this Part, the Model Law shall apply in the State.
5. CONSTRUCTION OF MODEL LAW
(1)  The reference to an agreement in Article 1(1) shall be construed as referring only to an agreement which has the force of law in the State.
(2)  The documents of the United Nations Commission on International Trade Law and its working group relating to the preparation of the Model Law may be considered in ascertaining the meaning or effect of any provision of the Model Law.
6. FUNCTIONS OF HIGH COURT
(1)  The High Court is specified for the purposes of Article 6 and is the court for the purposes of Article 9 and the court of competent jurisdiction for the purposes of Articles 27, 35 and 36.
(2)  The functions of the High Court under an Article referred to in subsection (1) and its functions under sections 7, ll (7) and (9) and 14(l) shall be performed by -
(a)  the President of the High Court, or
(b)  such Judge of the High Court as may be nominated by the President, subject to any rules of court made in that behalf.
(3)  An application may be made in a summary manner to the President of the High Court or to a judge referred to in subsection (2)(b) to exercise any of the functions referred to in subsection (2).
7. COURT POWERS EXERCISABLE IN SUPPORT OF INTERNATIONAL COMMERCIAL ARBITRATION PROCEEDINGS
(1)  For the purposes of giving effect to Article 9 or 27, the High Court may, on applicationunder section 6(3), make, in relation to an international commercial arbitration, any order in respect of -
(a)  the preservation, interim custody or sale of any goods which are the subject matter of the arbitral proceedings,
(b)  securing the amount at issue in the arbitral proceedings,
(c)  security for costs,
(d)  interim injunctions,
(e)  the appointment of a receiver,
(f)  the detention, preservation or inspection of any property or thing which is the subject matter of the arbitral proceedings and authorizing
(i)  for any of those purposes any person to enter any land or building in the possession of a party, or
(ii)  any sample to be taken, any observation to be made or any experiment to be tried which may be necessary or expedient for obtaining full information or evidence,
(g)  securing the attendance of witnesses before the arbitral tribunal in order that evidence be given or documents be produced,
(h)  the examination on oath or affirmation of any witness before an officer of the Court or other person,
(i)  the issue of a commission or request for the examination of a witness outside the State, or
(j)  the discovery and inspection of documents and interrogatories, that it has power to make for the purpose of and in relation to an action or other matter before the High Court.
(2)  A party shall not be ordered under this section to provide security for costs solely on the ground that the party is -
(a)  an individual who is ordinarily resident outside the State, or
(b)  a corporation or association incorporated or formed under a law other than the law of theState or whose central management and control is exercised outside the State.
(3)  Nothing in this section shall be taken to prejudice -
(a)  the generality of Articles 9 and 27, or
(b)  any power of an arbitral tribunal to make orders in respect of any of the matters mentioned in subsection (1).
8. POWERS OF ARBITRAL TRIBUNAL IN RELATION TO EXAMINATION OF WITNESSES, ETC.
Unless otherwise agreed by the parties, the arbitral tribunal may -
(a)  direct that a party to an arbitration agreement or a witness who gives evidence in proceedings before the arbitral tribunal be examined on oath or affirmation, and
(b)  administer any oaths or take affirmations necessary for the purposes of the examination.
9. CONSOLIDATION OF ARBITRAL PROCEEDINGS AND CONCURRENT HEARINGS
(1)  The parties to an arbitration agreement may agree -
(a)  that the arbitral proceedings shall be consolidated with other arbitral proceedings, or
(b)  that concurrent hearings shall be held, on such terms as may be agreed.
(2)  The arbitral tribunal has no power to order consolidation of proceedings or concurrent hearings unless the parties agree to confer such power on that tribunal.
10. INTEREST
(1)  The parties to an arbitration agreement may agree on the arbitral tribunal's powers regarding the award of interest.
(2)  Unless otherwise agreed by the parties, the arbitral tribunal may award simple or compound interest from the dates, at the rates and with the rests that it considers meet the justice of the case -
(a)  on all or part of any amount awarded by the arbitral tribunal, in respect of any period up to the date of the award;
(b)  on all or part of any amount claimed in the arbitration and outstanding at the commencement of the arbitration but paid before the award was made, in respect of any period up to the date of payment.
(3)  Unless otherwise agreed by the parties, the arbitral tribunal may award simple or compound interest from the date of the award (or any later date) until payment, at the rates and with the rests that it considers meet the justice of the case, on the outstanding amount of any award (including any award of interest under subsection (2) and any award of costs).
(4)  References in this section to an amount awarded by the arbitral tribunal include an amount payable in consequence of a declaratory award by the arbitral tribunal.
(5)  This section shall not affect any other power of the arbitral tribunal to award interest.
11. RECOVERABLE COSTS OF ARBITRATION AND RECOVERABLE FEES AND EXPENSES OF ARBITRAL TRIBUNAL
(1)  The parties to an arbitration agreement are free to agree on how the costs of the international commercial arbitration are to be allocated and on the costs that are recoverable.
(2)  An agreement of the parties to arbitrate subject to the rules of an arbitral institution shall be deemed to be an agreement to abide by the rules of that institution as to how costs are to be allocated and as to the costs that are recoverable.
(3)  References in subsections (1) and (2) to “costs” include the costs as between the parties and the fees and expenses of the arbitral tribunal.
(4)  Where there is no agreement of the parties as to the recoverable costs of the international commercial arbitration as between the parties, the arbitral tribunal may, with the consent of the parties to the arbitral proceedings, determine by award those costs on the basis it thinks fit.
(5)  Where there is no agreement of the parties as to the recoverable fees and expenses of the arbitral tribunal, the tribunal may determine by award those fees and expenses on the basis it thinks fit.
(6)  Where the tribunal makes a determination under subsection (4) or (5), it shall specify (a)  the basis on which it acted,
(b)  the items of recoverable costs, fees or expenses, as appropriate, and the amount referable to each, and
(c)  by and to whom they shall be paid.
(7)  Where a party does not consent to the arbitral tribunal making a determination under subsection (4) or where for any other reason the arbitral tribunal does not make that determination -
(a)  any party to the arbitral proceedings may apply to the High Court within 30 days after receipt of the award, or such further time as the Court may direct, for a determination of the recoverable costs as between the parties, and
(b)  the Court may determine those costs on the basis it thinks fit or may order that they be determined by the means and on the terms it specifies.
(8)  Notice of an application to the High Court under subsection (7) or subsection (9) shall be given to the arbitral tribunal and to the other parties to the arbitral proceedings.
(9)  Where the arbitral tribunal makes a determination under subsection (5) -
(a)  any party to the arbitral proceedings may apply to the High Court within 30 days after receipt of the determination, and
(b)  the Court may order that the amount of the arbitral tribunal's fees and expenses be reviewed and adjusted by the means and on the terms the Court specifies.
(10)  Subject to an order under subsection (9)(b), nothing in this section affects any right of the arbitral tribunal to payment of its fees and expenses.
(11)  References in this section to the fees and expenses of the arbitral tribunal include the fees and expenses of any expert appointed by the tribunal.
12. RESTRICTION ON LIABILITY OF ARBITRATORS, ETC.
(1)  An arbitrator shall not be liable for anything done or omitted in the discharge or purported discharge of his or her functions as arbitrator unless the act or omission is shown to have been in bad faith.
(2)  Subsection (1) shall apply to an employee, agent or advisor of an arbitrator and to an expert appointed under Article 26, as it applies to the arbitrator:
(3)  An arbitral or other institution or person designated or requested by the parties to appoint or nominate an arbitrator shall not be liable for anything done or omitted in the discharge or purported discharge of that function unless the act or omission is shown to have been in bad faith.
(4)  An arbitral or other institution or person by whom an arbitrator is appointed or nominated shall not be liable for anything done or omitted by the arbitrator (or his or her employees or agents) in the discharge or purported discharge of his or her functions as arbitrator.
(5)  Subsections (3) and (4) shall apply to an employee or agent of an arbitral or other institution or person as they apply to the institution or person himself or herself.
(6)  A witness who gives evidence in proceedings before an arbitral tribunal shall have the same privileges and immunities as witnesses have in proceedings before the High Court.
(7)  A person who -
(a)  is a barrister or solicitor or holds qualifications that have been obtained in another jurisdiction and are equivalent to those of a barrister or solicitor, and
(b)  appears in proceedings before an arbitral tribunal, shall have the same privileges and immunities as barristers and solicitors have in proceedings before the High Court.
(8)  A person who is a patent agent as defined in section 94(3) of the Patents Act, 1992, or a registered agent as defined in section 91(3) of the Trade Marks Act, 1996, shall have the same privileges and immunities referred to in subsection (7) when appearing in proceedings before an arbitral tribunal on -
(a)  in the case of a patent agent, any matter concerning the protection of an invention, patent, design or technical information or any matter involving passing off, and
(b)  in the case of a registered agent, any matter relating to the protection of a trade mark or any matter involving passing off.
13. TIME LIMITS FOR SETTING ASIDE AWARD
The time limit specified in Article 34(3) shall not apply to an application to the High Court to have an arbitral award set aside on the grounds that the award is in conflict with the public policy of the State.
14. EFFECT OF AWARD
(1)  An award made by an arbitral tribunal under an arbitration agreement shall be enforceable in the State either by action or, by leave of the High Court, in the same manner as a judgment or order of the Court to the same effect and, where leave is given, judgment may be entered in terms of the award.
(2)  An award referred to in subsection (1) shall be treated as binding for all purposes on the parties between whom it was made, and may accordingly be relied on by any of those parties by way of defence, set-off or otherwise in any legal proceedings in the State, and any reference in this section to the enforcement of an award shall be construed as including a reference to the reliance on such an award.
(3)  Unless otherwise agreed by the parties, Articles 35 and 36 shall apply to orders made by an arbitral tribunal under Article 17 as if a reference in Articles 35 or 36 to an award were a reference to such an order and subsections (1) and (2) shall apply accordingly.
(4)  Nothing in this section affects the recognition or enforcement of an award under -
(a)  Part V of the Arbitration Act, 1954 (enforcement of awards under the Geneva Convention), or
(b)  Parts III and IV of the Arbitration Act, 1980 (enforcement of awards under the New York and Washington Conventions).
15. TRANSITIONAL PROVISIONS
(1)  This Part shall not apply to an international commercial arbitration commenced before the day on which this Act comes into operation unless -
(a)  the arbitration is concluded after that day, and
(b)  the parties agree that this Part shall apply.
(2)  This Part shall apply to an international commercial arbitration commenced on or fter the day on which this Act comes into operation -
(a)  under the arbitration agreement entered into on or after that day, or
(b)  if the parties so agree, under an arbitration agreement entered into before that day.
16. NON-APPLICATION OF ARBITRATION ACTS
Subject to section 14(4), the Arbitration Acts, 1954 and 1980, shall not apply to an arbitration to which this Part applies.
Part III. Amendments to Arbitration Acts, 1954 and 1980
17. AMENDMENT TO ARBITRATION ACT, 1954
The Arbitration Act, 1954, is hereby amended by substituting the following for section 34: “Interest on awards
(1) The parties to an arbitration agreement may agree on the powers of the arbitrator or umpire as regards the award of interest.
(2) Unless otherwise agreed by the parties, the arbitrator or umpire may award simple or compound interest from the dates, at the rates and with the rests that he or she considers meet the justice of the case -
(a) on all or part of any amount awarded by the arbitrator or umpire, in respect of any period up to the date of the award;
(b) on all or part of any amount claimed in the arbitration and outstanding at the commencement of the arbitration but paid before the award was made, in respect of any period up to the date of payment.
(3) Unless otherwise agreed by the parties, the arbitrator or umpire may award simple or compound interest from the date of the award (or any later date) until payment, at the rates and with the rests that he or she considers meet the justice of the case, on the outstanding amount of any award (including an award of interest under subsection (2) and an award of costs).
(4) References in this section to an amount awarded by an arbitrator or umpire include an amount payable in consequence of a declaratory award by the arbitrator or umpire.
(5) This section shall not apply to an arbitration commenced before the day on which the Arbitration (International Commercial)Act, 1998, comes into operation unless -
(a) the arbitration is concluded after that day, and
(b) the parties agree that this section shall apply.
(6) This section shall apply to an arbitration commenced on or after the day on which the Arbitration (International Commercial) Act, 1998 comes into operation -
(a) under an arbitration agreement entered into on or after that day, or
(b) if the parties so agree, under an arbitration agreement entered into before that day.
(7) This section shall not apply to an arbitration conducted by a property arbitrator appointed under section 2 of the Property Values (Arbitration an Appeals) Act, 1960.”
18. AMENDMENT TO ARBITRATION ACT, 1980
Section 5 of the Arbitration Act, 1980, is hereby amended by the insertion of the following subsection after subsection (2):
(3)
“Nothing in this section shall prevent any party to an arbitration agreement from invoking the alternative method, provided by the Rules of Court (as amended from time to time), of commencing and dealing with a civil proceeding in respect of a small claim.”