Business Disputes in Finland

START WITH THE CONTRACT

The dispute resolution clause in your contract usually decides where and how the dispute is resolved: in arbitration or in court, in which country, and under which law. Many international commercial contracts and shareholders’ agreements include an arbitration clause. If they do, the dispute is normally resolved in arbitration rather than in the Finnish courts. Checking the clause is the first thing we do.

ARBITRATION IN FINLAND

Arbitration in Finland is governed by the Finnish Arbitration Act (967/1992). Institutional arbitrations are often conducted under the rules of the Finland Arbitration Institute (FAI). Proceedings can be conducted in English, they are confidential, and the award is final and binding with very limited grounds for challenge. Finnish arbitral awards can be enforced in other countries that are party to the New York Convention. Read more about arbitration.

MEDIATION AND SETTLEMENT

Most business disputes are worth trying to settle before a full process. Settlement can be negotiated directly between the parties or reached in mediation, either court-annexed mediation led by a judge or institutional mediation. A settlement confirmed by the court is enforceable. We prepare the negotiation as carefully as a court case, so that your position stays credible. Read more about mediation.

LITIGATION IN THE FINNISH COURTS

Without an arbitration clause, the dispute is heard in a Finnish district court (käräjäoikeus). The process starts with a written application for a summons. The defendant files a written defence within the deadline set by the court. The case is then prepared, often in a preparatory hearing, and decided after a main hearing where witnesses are heard. A district court judgment can be appealed to the Court of Appeal, which in many cases requires leave for continued consideration. A further appeal to the Supreme Court requires leave to appeal.

Court proceedings are conducted in Finnish or Swedish, and documents in other languages may need to be translated. We work with you in English and handle the Finnish-language process for you.

CROSS-BORDER ENFORCEMENT

A judgment from a Finnish court can, as a rule, be enforced in other EU member states under the Brussels I bis Regulation (EU) No 1215/2012. Outside the EU, enforcement depends on the country. We take enforcement into account when choosing the strategy, because a favourable decision is only worth as much as you can collect.

HOW WE PROCEED

1. Initial consultation: we go through your situation and goals. 2. Review: we read the contract, correspondence and evidence and give you our assessment of strengths, risks and costs. 3. Strategy: we decide together whether to negotiate, mediate, arbitrate or litigate. 4. Representation: we handle the process to the end.