Ireland could become a leading legal services centre after Brexit if the Government can encourage multinationals to use Irish law when drafting contracts, the Bar of Ireland has said.
Most international companies operating in Europe use English law as the governing law of contract, meaning any contract disputes are settled in London using UK judges.
About 80 per cent of all commercial court cases in London involve at least one foreign party. In almost half of cases all the parties are foreign. This is because England has a well-developed and resourced common law legal system and because English judgments are enforceable across the EU.
However, after Brexit English law is likely to diverge from EU law, meaning the decisions of English courts may become unenforceable internationally.
According to a briefing document seen by The Irish Times, the Bar of Ireland believes Dublin could capitalise on Brexit to become an international dispute resolution centre like London.
The document states if the Government is willing to invest in the plan and overhaul aspects of the Irish justice system, a hard Brexit could lead to between 3,000 and 5,000 jobs in the legal sector in the medium term.
Serious effort
“A serious effort needs to be made to ensure that the community of corporate lawyers in Ireland recommend Irish law, and Irish jurisdiction, wherever possible. This is best achieved through Government support of this initiative.”
It says Ireland’s post-Brexit position as the only common law and only English-speaking legal system in the EU means it could be very attractive to international companies.
The report notes other EU countries such as France, Germany and Belgium have already begun to target the gap which will be left by Brexit in legal services.
“Ireland has a natural advantage over other European countries. It is English-speaking, common law, and already has a highly developed legal system with a recognised commercial court. It is essential that Government move quickly to secure this advantage by endorsing a comprehensive strategy to promote Irish law and Irish lawyers to the international sector,” says the document.
The bar said its proposals have the support of the judiciary “at the highest level”, and that if implemented correctly the plan would place Ireland “as an island in the centre of the world”.
Irish lawyers should also be promoted to international companies as experts in EU law and international taxation agreements.
Jurisdiction
According to a survey by law firm Simmons & Simmons, 50 per cent of its clients in Europe are considering moving away from English law or jurisdiction.
The Bar said in order to capitalise on this the legal sector must be properly resourced, particularly the Court of Appeal which currently has a huge backlog. It said Ireland’s fast-track Commercial Court has a good reputation for efficiency but it would need more resources to cope with an influx of international litigants.
It said the Government should adopt a formal resolution to develop the strategy, and should establish and implementation group.
