Mediation in Finland

Settle the dispute before it costs more

Most business disputes are worth trying to settle before a full court case or arbitration. Mediation is often the fastest and least expensive way to do that, and it lets the parties keep control of the outcome. A mediator helps the parties find a solution but does not decide the case. Mediation is voluntary and confidential.

Mediation works best when both parties have an interest in moving on: a business relationship worth keeping, a shareholder exit to agree on, or a claim where the cost and time of a process would eat up much of the value.

Mediation options in Finland

Court-annexed mediation. Under the Act on Mediation in Civil Matters and Confirmation of Settlements in General Courts (394/2011), a district court can mediate a civil dispute, with a judge acting as mediator. A settlement reached in court-annexed mediation can be confirmed by the court.

Institutional mediation. The Finland Arbitration Institute (FAI) administers mediation under the Mediation Rules of the Finland Chamber of Commerce. The parties can agree on the place and language of the mediation, so it can be conducted in English. Under the FAI rules, the parties may also agree to appoint the mediator as an arbitrator to confirm the settlement in an arbitral award for enforcement purposes.

Confirming an out-of-court settlement. Under chapter 3 of Act 394/2011, a settlement reached in mediation outside the courts can, on application, be confirmed as enforceable by a Finnish court.

Direct negotiation. Many disputes are settled through negotiations between the parties’ lawyers, without a mediator.

Mediation clauses and arbitration

Many contracts require the parties to attempt mediation before arbitration or litigation. If your contract contains such a clause, it usually has to be followed before the next step. Mediation can also be combined with arbitration: if mediation does not lead to a settlement, the dispute continues in arbitration.

Our role in mediation

A good settlement requires the same preparation as a court case. Before mediation, we assess your legal position, the evidence and the cost risk of the alternatives, so you know what a reasonable settlement looks like. During mediation, we represent you and negotiate on your behalf. Afterwards, we draft the settlement agreement so that it is clear, binding and, where needed, enforceable.

We also tell you when mediation is unlikely to work, for example when the other party is clearly using it to buy time.

How we proceed

1. Initial consultation. We go through your situation and goals.
2. Assessment. We review the contract, correspondence and evidence and give you our view of your position and the alternatives.
3. Preparation. We agree on the settlement range and the negotiation strategy with you.
4. Mediation and settlement. We represent you in the mediation and draft the settlement agreement.

We work with you in English. Read more about business disputes in Finland.