FINLAND Law and Practice Contributed by: Tuuli Timonen, Annika Lampela and Tony Chokairy, Dottir Attorneys
• mandatory injunctions requiring a party to take specific steps. Interim relief is regularly sought in commercial dis- putes, particularly where there is a risk of asset dis- sipation, ongoing contractual breaches, or in connec- tion with prohibitory injunctions. The courts typically require the applicant to provide security for potential damages caused by the interim measure. A specific type of interim measure exists in the field of intellectual property, resulting from the implemen- tation of the EU Enforcement Directive (2004/48/EC). In addition to the general interim measures available under the Finnish Code of Judicial Procedure, the courts may order measures aimed at securing evi- dence in intellectual property disputes, for example, by ordering the seizure of relevant materials or other- wise preserving evidence where there is a risk that it may be lost or destroyed. 2.7 Final Relief In commercial litigation, the most common form of final relief is a monetary judgment awarding damages or payment of an outstanding debt. The courts may also order specific performance where appropriate. Other available remedies include: • declaratory judgments confirming the existence or absence of rights; • injunctions prohibiting certain conduct; • termination or rescission of contracts; and • adjustment of contractual terms in limited circum- stances. 2.8 Damages Damages in Finland are primarily compensatory. The general principle is full compensation for proven loss, covering both direct and, where applicable, indirect losses. Punitive damages are not recognised under Finnish law. The claimant bears the burden of proving the exist- ence and amount of loss, as well as causation. The courts assess the damages based on the evidence presented. The courts may exercise discretion where
exact quantification is difficult, provided that the exist- ence of damage has been established. Contractual limitations of liability are generally enforceable in commercial relationships, subject to mandatory law and reasonableness considerations. In practice, indirect damages are often carved out in commercial contracts, except for intentional miscon- duct or gross negligence. Careful documentation and expert evidence often play a central role in substantiating damages claims in complex commercial disputes. Arbitration is a widely used method in Finland for resolving commercial disputes. In many commercial contracts, arbitration is agreed as the default dispute resolution mechanism. Disputes commonly referred to arbitration include: • M&A and shareholder disputes; • construction and infrastructure disputes; • energy and industrial project disputes; • technology, supply and distribution agreements; and • cross-border transactions, almost regardless of the type of transaction. The use of arbitration is especially prevalent where parties seek confidentiality, procedural flexibility and enforceability across borders. The length of commer- cial litigation in Finnish courts has also increasingly incentivised parties to resort to arbitration. 3.2 Restrictions on Use of Arbitration Finnish law is generally arbitration-friendly, and most commercial disputes can be referred to arbitration. The key requirement is that the dispute concerns a matter that the parties may settle by agreement. Certain types of disputes cannot be resolved by arbitration. These typically include criminal matters, certain family law issues and other matters involving 3. Arbitration 3.1 Prevalence
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