FINLAND Law and Practice Contributed by: Julia Pekkala, Mikko Leppä, Risto Sandvik and Nuutti Kortelainen, HPP Attorneys Ltd
4.2 Default Procedures As mentioned in 4.1 Limits on Selection , parties’ autonomy to select arbitrators is broad. The Arbitra - tion Act provides default procedures for appointing arbitrators when the parties have not agreed other - wise. Unless agreed otherwise, the number of arbitrators shall be three, and the party initiating the arbitration shall appoint one arbitrator in its notice of arbitration. The other party shall then appoint one arbitrator within 30 days of receiving the notice of arbitration. The arbi - trators thus appointed shall appoint one more arbitra - tor to act as the presiding arbitrator. If a party fails to fulfil its obligation to appoint an arbi - trator within 30 days of receiving a notice of arbitra - tion, the other party may request a court to appoint the missing arbitrator. If the arbitrators appointed by the parties fail to appoint a presiding arbitrator, a court may appoint the presiding arbitrator at a party’s request. If the dispute is to be decided by a sole arbitrator but the parties have not agreed on the arbitrator within 30 days of the date when a party receives the notice of arbitration from the other party, any party may request the court to appoint the arbitrator. The FAI Rules also provide for specific default proce - dures for selecting arbitrators. Default Procedures in Multiparty Arbitration The Arbitration Act does not specifically address multiparty arbitration, but the default procedure used in bi-party arbitration is also applicable in multiparty arbitration. The FAI Rules provide for a default proce - dure applicable to multiparty arbitration. 4.3 Court Intervention As mentioned in 4.2 Default Procedures , in ad hoc arbitration, a court may appoint arbitrators where the parties fail to appoint the arbitrator themselves, or where the arbitrators appointed by the parties fail to appoint a presiding arbitrator. This intervention of the court is always subject to a request by a party to the arbitration.
A court may also appoint arbitrators, at the request of a party, in cases where an appointed arbitrator dies, resigns or is removed. 4.4 Challenge and Removal of Arbitrators Under the Arbitration Act, on the challenge of a party, an arbitrator shall be disqualified if they would have been disqualified from hearing the case as a judge, or if other circumstances exist that give rise to justifi - able doubts as to their impartiality or independence as an arbitrator. The provisions on the disqualification of judges are contained in the Finnish Code of Judicial Procedure. If the appointment of an arbitrator is challenged, it will be decided by the arbitral tribunal. Courts are only competent to examine an arbitrator’s impartiality or independence during set-aside proceedings. 4.5 Arbitrator Requirements Under the Arbitration Act, arbitrators must be impartial and independent in their duties. Before accepting an appointment, the prospective arbitrator shall disclose any circumstances likely to endanger or give rise to justifiable doubts as their impartiality and independ - ence as an arbitrator. The FAI Rules have similar requirements of impartiality, independency and disclosure. An arbitral tribunal is obliged to rule on a party’s chal - lenge to the tribunal’s own jurisdiction. Under the FAI Rules, the arbitral tribunal has the power to rule on its own jurisdiction, including any objections concerning the existence, validity or applicability of the arbitration agreement. However, the arbitral tribunal’s decision on compe - tence is ultimately not binding on the courts, as a party has the right to request a court to rule on the issue by bringing a declaratory action claim regarding the valid - ity or scope of the arbitration agreement. Even if the arbitral tribunal’s jurisdiction is challenged in court, the arbitrators may commence or continue the arbitration 5. Jurisdiction 5.1 Challenges to Jurisdiction
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