FINLAND Law and Practice Contributed by: Tuuli Timonen, Annika Lampela and Tony Chokairy, Dottir Attorneys
employee would have been unreasonable, and the dispute was therefore allowed to proceed before the general courts. In addition, courts may assist in matters relating to the constitution and functioning of the arbitral tribunal, including the appointment of arbitrators and, in certain circumstances, issues relating to arbitrators’ fees. The courts also have an independent role in granting interim measures in support of arbitration. Under Finn- ish law, parties may seek interim relief from the courts irrespective of the existence or stage of the arbitration, and such measures are granted and enforced by the courts. After an award has been rendered, a party may apply to set it aside on specific procedural grounds. These grounds include serious procedural irregularities, excess of mandate or lack of a valid arbitration agree- ment. The courts do not review the merits of the case. Overall, the threshold for successful challenges is high, reflecting Finland’s pro-arbitration stance. 3.10 Relief Arbitral tribunals may grant the same types of sub- stantive relief as courts in commercial matters, pro- vided that the dispute is arbitrable, and the relief is recognised under the applicable law. Available relief includes monetary damages, declaratory relief and orders for specific performance, subject to the limits of the parties’ claims, applicable substantive law and Finland’s public policy. Arbitral tribunals may not grant relief that falls within the exclusive powers of the state, such as criminal sanctions or tax measures. Arbitral tribunals may also order interim measures within the framework of the applicable arbitration rules, unless the parties have agreed otherwise. How- ever, such measures are not enforceable under Finn- ish law and do not give rise to direct enforcement mechanisms before the courts. In practice, interim measures ordered by arbitral tribunals may still have practical significance, even without enforceability, as parties are often reluctant to act in breach of such orders.
Instead, parties may apply for interim relief from the competent courts, which retain independent jurisdic- tion to grant interim measures irrespective of the exist- ence or stage of the arbitration. The courts can grant the same types of interim measures in aid of arbitra- tion as in civil proceedings, including asset attachment and various forms of injunctive relief. Court-ordered interim relief in aid of arbitration is relatively common.
4. Other ADR Methods 4.1 ADR Procedures
In addition to litigation and arbitration, several alterna- tive dispute resolution (ADR) procedures are available in Finland. The most commonly used ADR mechanism in commercial disputes is mediation. Mediation may take place as private mediation, insti- tution-based mediation or court-annexed mediation. Private mediation is conducted by an independent mediator chosen by the parties, often a lawyer or other professional with experience in dispute resolu- tion. The process is flexible and based on voluntary participation, allowing the parties to negotiate a mutu- ally acceptable settlement with the assistance of the mediator. Institution-based mediation is also available, for exam- ple, under the FAI Mediation Rules or the ICC Media- tion Rules. These frameworks provide structured rules and administrative support, which may be particularly useful in more complex or cross-border disputes. Court-annexed mediation is conducted under the supervision of a judge acting as mediator. It is initi- ated either at the request of the parties or upon the suggestion of the court. Court-annexed mediation may be undertaken in parallel to ongoing litigation proceedings or independently of any litigation. It is required that a different judge acts as mediator to the judge hearing the case at trial. The mediator may not disclose the content of the mediation to the trial judge, and the parties may not rely in subsequent proceed- ings on statements or settlement proposals made dur- ing the mediation.
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