The survey of 200 professionals was conducted at the firm’s recent dispute resolution conference at the Royal Irish Academy of Music, Dublin.

The event showcased the growing importance of ADR and the anticipated impact of class actions on corporate risk and consumer power. The conference aimed to equip businesses and in-house legal teams with actionable insights to navigate the evolving dispute resolution landscape in Ireland.

When asked about the biggest challenges in negotiating dispute resolution clauses in commercial contracts, nearly half of respondents (49 per cent) pointed to agreeing on ADR mechanisms.

While mediation is often preferred for collaboration, negotiation can allow for faster settlements and arbitration offers a more formal, binding resolution. Only 4 per cent chose arbitration, despite its formal, binding nature which can be useful in more complex or high-stakes disputes.

Gerard Kelly, dispute resolution partner at Mason Hayes & Curran, said: “The preference for mediation highlights its effectiveness in resolving disputes efficiently and amicably. However, finding the right approach is key.

“Companies need to take account of the type of dispute resolution mechanism that will best serve them, no matter what side of the dispute they are on. They should consider whether they want something that is cost effective or speedy, and whether it is important to maintain a business relationship while a dispute is being resolved.”

Attorney General Rossa Fanning SC delivered a keynote address on Ireland’s advantages as a place to do business and resolve disputes effectively. He said that Ireland is “a jurisdiction that takes the resolution of disputes outside of court seriously, and rightly so”.

He continued: “The efficient resolution of disputes, through the courts or through alternative dispute resolution mechanisms, is a matter of public interest.

“This is not only to ensure that the people who live and work here can secure the benefits of the administration of justice, but also to ensure that Ireland continues to provide an environment that supports businesses, domestic and international, as they continue to build on our thriving economy.”

The survey also highlighted the barriers to the broader adoption of ADR in Ireland. Over half of the respondents (51 per cent) cited a lack of awareness as the biggest obstacle to its broader adoption in Ireland, followed by cost concerns (39 per cent).

Mr Kelly added: “Businesses may not be aware of the benefits that ADR can bring. Our findings underscore the potential need for greater education and promotion of ADR methods. The legal profession can work to shift the perception that ADR is too expensive or too complicated. The fact is, these methods can often save time and money compared to traditional litigation.”

Meanwhile, the findings suggested a cautious optimism regarding the introduction of a form of class actions for consumers in Ireland.

While 47 per cent of respondents viewed collective actions for consumers as “necessary and overdue”, 49 per cent saw them as “beneficial but risky”.

The Representative Actions for the Protection of the Collective Interests of Consumers Act 2023 commenced in April and provides a mechanism for consumers to take collective legal action. However, there is ongoing uncertainty around the funding of these actions, with consumers paying €25 to participate.

Peter Johnston, dispute resolution partner at Mason Hayes & Curran, said: “The split opinion on collective actions reflects the complex nature of this legal mechanism. While it promises improved access to justice and increased corporate accountability, there are also associated risks and challenges.

“One of the main challenges is the prohibition of litigation funding. There will need to be a workable funding mechanism to facilitate the bringing of collective actions to ensure the Act fulfils its purpose.”

Respondents identified greater consumer power (49 per cent) as the most likely impact of introducing collective actions, followed by an increase in the volume of litigation (28 per cent). More than a third (36 per cent) said that more efficient court resources would be the biggest benefit.

Mr Johnston added: “The anticipated shift in consumer power through collective actions could significantly alter the corporate risk landscape in Ireland.

“Consumer facing companies, particularly those that operate in multiple member states, will need to reassess their approach to consumer engagement, dispute management, and compliance, especially as they navigate the potential rise in litigation.”