FINLAND Law and Practice Contributed by: Tuuli Timonen, Annika Lampela and Tony Chokairy, Dottir Attorneys
5.4 Insurance Insurance coverage for dispute resolution costs is widely available in Finland. Legal expenses insur- ance is commonly included in household and busi- ness insurances and may cover legal costs arising from litigation, arbitration or other dispute resolution proceedings. Such insurance typically covers the insured party’s legal fees up to a specified limit, subject to deducti- bles and agreed conditions. Coverage often applies only to disputes that arise during the policy period and may exclude certain types of claims. Legal expenses insurance plays a significant role in enabling individuals and smaller businesses to pursue or defend legal claims. 5.5 Costs The general rule is that the losing party must reim- burse the reasonable legal costs of the prevailing party. This principle is intended to ensure that a party that successfully enforces its rights is not left bearing the financial burden of the dispute. However, courts have discretion in determining the final allocation of costs. If both parties succeed in part, the court may order each party to bear its own costs, or allocate costs proportionally. Furthermore, Finnish courts apply a relatively strict assessment of the reasonableness of legal costs, which often results in prevailing parties bearing a portion of their own costs, particularly in large‑scale commercial disputes. In arbitration, cost allocation is typically determined by the arbitral tribunal. The tribunal usually follows a similar principle whereby the unsuccessful party bears (most of) the costs, although the final alloca- tion depends on the circumstances of the case and
by the prevailing party; instead they must be claimed by that party in its request for relief. Factors typically taken into consideration by the courts when determining costs include: • the complexity and value of the dispute; • the amount of work required in the case; and • the conduct of the parties during the proceedings. If the court considers the claimed costs excessive, it may reduce the amount awarded to what it deems “reasonable”. This assessment seeks to balance fair- ness between the parties while discouraging unneces- sary or disproportionate litigation expenses. In addition, the court will assess the relative success of the parties when deciding on the allocation of costs. Finnish courts may grant interim measures to secure a party’s rights pending final resolution of a dispute. These measures aim to preserve the status quo or prevent harm that could undermine enforcement of a final judgment. Finnish courts have broad discretion in determining the appropriate type of interim relief. The key measures include asset attachment, prohibi- tory injunctions (preventing a party from taking certain actions) and mandatory injunctions (requiring a party to take specific steps, such as performing an obliga- tion or restoring a previous state of affairs). To obtain interim relief, the applicant must demon- strate a plausible claim and a risk that enforcement of the final judgment would otherwise be jeopardised or that significant harm could occur. 6.2 Interim Relief to Support Arbitration and ADR Finnish courts may grant interim relief before or during arbitration in aid of arbitration, as well as – at least in theory – in aid of other forms of ADR. 6. Interim Remedies 6.1 Availability of Interim Relief
the applicable arbitration rules. 5.6 Assessment of Costs
When assessing recoverable costs, Finnish courts consider whether the costs were reasonable and necessary for conducting the proceedings. The court does not automatically reimburse all legal fees claimed
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