Clients paying attention to dispute prevention – MHC
The disputes landscape in Ireland is becoming more sophisticated, with a noticeable increase in complex, multi-jurisdictional matters, according MHC partner Gerard Kelly SC, who is co-head of the firm’s dispute-resolution practice.
Kelly said that the firm’s clients were paying closer attention to dispute prevention, particularly through clearer contracts and stronger governance practices.
Mediation more prevalent
Alternative dispute-resolution methods, such as mediation in particular, seemed to be becoming more prevalent in commercial disputes at an early stage, Kelly added.
The courts continued to modernise, actively managing cases and encouraging early engagement to keep costs under control, he commented.
Technology was also changing how cases were run, from digital filings to hybrid hearings, the SC continued.
“Overall, Ireland remains a trusted, efficient and impartial venue for resolving both domestic and cross-border disputes, which is encouraging continued interest from international businesses,” Kelly said.
There are a number of changes expected when the Defamation Bill 2024 comes into force imminently.
“There will be an end to defamation cases being heard by a jury trial, which should streamline defamation cases somewhat and provide more certainty for defendants regarding damages levels,” Gerard Kelly SC said.
For online service providers, the legislation will also provide more certainty as the complex defences that arise on intermediary liability will be decided by a judge.
‘Serious harm’ must be shown
Another reform that will reshape defamation actions is that a company plaintiff in a defamation case will now have to show serious harm, which means that the company has suffered serious financial loss before a defamation case can be taken by the company.
This will have the potential to reduce actions taken by corporate plaintiffs, but will also lead to more hearings on the threshold of serious financial loss being determined, Kelly predicted.
Supply-chain issues had become a major source of commercial tension as businesses navigated higher costs, shifting regulation and unpredictable logistics, the SC added.
The geopolitical landscape has encountered a number of armed conflicts in recent years. Many disputes stemmed from unclear allocation of risk, particularly on pricing, delivery obligations and termination rights, he commented.
Businesses were responding by tightening their contracts, improving record-keeping and engaging with suppliers earlier when problems emerge, he said.
Good communication often prevented a commercial disagreement from escalating into a legal one, the MHC SC noted.