Brexit - Litigation & Dispute Resolution
Critical issues for businesses to consider:
Dublin as a Dispute
Resolution Centre: Ireland is well positioned to benefit from the
uncertainty created by Brexit and to become an international hub for dispute
resolution. Post-Brexit, Ireland will be the largest common law jurisdiction in
the European Union. The common law is favoured by many international companies,
particularly US companies, for cross-border corporate contracts. This provides
Dublin with a significant opportunity to become the go to destination for the
resolution of cross-border disputes. The Irish Commercial Court already
provides the ideal fast track framework favoured for the resolution of disputes
by international businesses.
A significant added advantage of litigating these disputes in
Ireland, as opposed to in the UK post-Brexit, is that membership of the EU
provides a legislative framework for the seamless issuing of proceedings and
enforcement of judgments against other companies based within the EU.
The recognition of Ireland as a favourable jurisdiction for
international dispute resolution has already commenced with the International
Swaps and Derivatives Association (ISDA)
recently introducing Irish law as an option for parties to its derivative
Suing or being sued by a
UK Company: Ireland’s membership of
the European Union provides significant benefits for cross-border litigation
including the recognition of judgments in other member states and the relative
ease of serving proceedings in other EU member states. Post-Brexit, the UK will not be able to avail
of these helpful EU regulations.
As such, the position regarding proceedings involving a UK company post-Brexit is uncertain. It will be more difficult, for example, to enforce a UK judgment against an Irish company. Processes and procedures will need to be developed to address these issues but in the short to medium term, it is likely to result in additional costs and delays in relation to certain aspects of litigating a claim against a UK company.