James Browne (Wexford, Fianna Fail) | Oireachtas source

I move amendment No. 69:

In page 19, between lines 9 and 10, to insert the following:

“Maintenance and champerty not to apply to dispute resolution proceedings

35.The Arbitration Act 2010 is amended by the insertion of the following section after section 5:

“5A.(1) This section applies to dispute resolution proceedings.

(2) The offences and torts of maintenance and champerty do not apply to dispute resolution proceedings.

(3) A third-party funding contract that meets the criteria (if any) prescribed under subsection (4) shall not, insofar as it relates to dispute resolution proceedings, be treated as contrary to public policy or otherwise illegal or void.

(4) The Minister may, for the purposes of subsection (3), by regulation prescribe criteria, including criteria relating to transparency in relation to funders and recipients, for third-party funding contracts.

(5) In this section—

‘dispute resolution proceedings’ means:

(a) an international commercial arbitration;

(b) any proceedings arising out of an international commercial arbitration before a court of competent jurisdiction performing any of the functions provided for in the Model Law;

(c) any appeal from a decision of a court referred to in paragraph (b);

(d) any mediation or conciliation proceedings arising out of an international commercial arbitration, proceedings or an appeal referred to in paragraph (a), (b) or (c);

‘third-party funding contract’ means a contract or agreement between a party or potential party to dispute resolution proceedings and a third-party funder, for the funding of all or part of the costs of the proceedings in return for a share or other interest in the proceeds or potential proceeds of the dispute resolution proceedings to which the party or potential party may become entitled.”.”.

The purpose of amendment No 69 is to amend to the Arbitration Act 2010 by inserting a new section 5A to permit third-party funding in limited circumstances specifically relating to international commercial arbitration. It provides that offences and torts of maintenance and champerty do not apply to dispute resolution proceedings, which are defined as international commercial arbitration and any proceedings arising out of an international commercial arbitration, including any mediation or conciliation proceedings. The new section 5A also includes the power to make regulations prescribing criteria for third-party funding contracts. This amendment will have a positive effect on the international perception of the Irish legal framework by removing any doubts regarding the ability to enforce arbitration awards in the State. While the amendment provides for a limited liberalisation of third-party funding, next year my Department will commence a broader policy review on the Law Reform Commission position paper on the matter, which will be published in the coming months. Amendment No. 80 is the associated amendment to the Long Title.