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It has come to the notice of the Society that in a number of cases, particularly in commercial leases, arbitration clauses are being included which, while providing that the President of the Law Society is to be the appointor of the arbitrator, restrict significantly his powers of choice of arbitrator.

A particular example in current use provides " the parties in dispute may stipulate that the arbitrator shall be appointed from:

1. fellows of the Institute of Chartered Accountants in Ireland; or
2. members of the Irish Auctioneers & Valuers Institute; or
3. members of the Society of Chartered Surveyors in Ireland

as many seem appropriate and if the parties shall by agreement so stipulate then the appointment shall be in accordance with such stipulation. In default of such stipulation the arbitrator shall be appointed from among counsel of the Senior Bar of Ireland (Republic)".

The Arbitration Committee of the Society has recommended to the Council of the Law Society that members should be asked not to include such forms of arbitration clause in documents prepared by them. It will be noted that the clause in question does not authorise the President to appoint a solicitor as arbitrator. While the Society is anxious to encourage the selection of the President of the Law Society as the appointor of arbitrators, since the Society has administrative procedures in place for the ready appointment of arbitrators, it is felt inappropriate that the President of the Law Society should be precluded, when making an appointment, from appointing a solicitor to act as arbitrator. It is emphasised that the Society is not seeking to have solicitors exclusively appointed as arbitrators but merely that the President should have an option when exercising his discretion to appoint a solicitor where he believes a solicitor to be the appropriate person.

General form of Arbitration Clause

The Society's recommended form of general arbitration clause is as follows:-

All disputes which arise between the parties in connection with this agreement, or the subject matter of this agreement, shall be decided by an arbitrator agreed by the parties or, in default of agreement, appointed by the President for the time being of the Incorporated Law Society of Ireland or in the event of his being unwilling or unable to do so by the next senior officer of the Society who is willing and able to make the appointment provided always that these provisions shall apply also to the appointment (whether by agreement or otherwise) of any replacement arbitrator where the original arbitrator (or any replacement) has been removed by order of the High Court, or refuses to act, or is incapable of acting or dies.