FINLAND Law and Practice Contributed by: Tuuli Timonen, Annika Lampela and Tony Chokairy, Dottir Attorneys
Dottir Attorneys Pohjoisesplanadi 35 Aa 00100 Helsinki Finland Tel: +358 50 354 4141 Email: hello@dottirlaw.com Web: www.dottirlaw.com
1. Dispute Resolution Methods 1.1 Main Dispute Resolution Methods The main dispute resolution methods for commer- cial disputes in Finland are litigation before the gen- eral courts and arbitration. In addition, mediation and other consensual methods are available either as standalone processes or alongside court or arbitra- tion proceedings. In particular, mediation is gaining momentum. 1.2 Choice of Dispute Resolution Method Both litigation and arbitration are widely used in Fin- land. Litigation is more common in terms of volume, where- as arbitration is typically preferred in commercial con- tracts between businesses. Arbitration is commonly agreed as the default dispute resolution mechanism in international agreements involving Finnish parties, as well as in medium-sized and large domestic transactions. Arbitration is commonly preferred as a dispute resolu- tion method in, among other things, share purchase agreements and M&A disputes, shareholder and joint venture disputes, construction and energy projects, technology agreements, and in international commer- cial contracts. Litigation before the courts is more common in small- er commercial disputes, debt collection matters, and insolvency-related disputes.
Mediation is rarely used as a primary mechanism in domestic disputes and in dispute resolution clauses between domestic parties, but it is increasingly con- sidered as a complementary step before formal pro- ceedings. A multi-tiered dispute resolution clause, with mediation as a mandatory step before arbitration, is more common in international settings but remains less common than a simple arbitration clause (pos- sibly preceded by negotiations). 1.3 Key Dispute Resolution Trends A key trend is the increasing use of settlement mecha- nisms in commercial disputes. Parties are more willing to explore negotiated solutions at an early stage, both in litigation and arbitration. Court-annexed mediation is also gaining traction as a practical and cost-efficient tool. In addition to the more traditional types of construc- tion disputes, disputes in the energy sector have become more prominent, reflecting market volatility, transition-related investments and evolving regulatory frameworks. Technology-related disputes are also on the rise, for instance in connection with IT outsourcing arrange- ments, where issues often concern service levels, delivery failures and allocation of liability. In addition, the increasing use of AI is beginning to generate new types of disputes, including questions relating to the ownership of AI-generated outputs, allocation of liability, and risks of infringement or pla- giarism.
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