FINLAND Law and Practice Contributed by: Julia Pekkala, Mikko Leppä, Risto Sandvik and Nuutti Kortelainen, HPP Attorneys Ltd
6. Preliminary and Interim Relief 6.1 Types of Relief
Emergency Arbitrators The matter of emergency arbitrators is not regulat - ed by law in Finland, but the FAI Rules allow for the appointment of an emergency arbitrator if a party is in need of urgent interim protection measures that can - not await the constitution of an arbitral tribunal. An emergency arbitrator has the same power to grant any interim protection measures as an arbitral tribunal under the FAI Rules. As with interim measures granted by an arbitral tri - bunal, interim measures granted by emergency arbi - trators are not enforceable. As expressed in the FAI Rules, the provisions concerning the appointment of an emergency arbitrator are not intended to prevent a party from seeking urgent interim protection measures from a competent judicial authority. 6.3 Security for Costs The Arbitration Act grants arbitrators the right to order a party to compensate the other party for their costs in the arbitration proceedings, in whole or in part. However, parties may also agree otherwise. Arbitra - tors may demand an advance on the compensation for their work and expenses, or a security thereof. In institutional arbitration under the FAI Rules, the par - ties are obliged to pay an advance on costs fixed by the Institute. National courts are not explicitly authorised to impose security for costs under the Arbitration Act. However, nothing prevents a party, from seeking interim relief from a court to ensure coverage of the costs. 7. Procedure 7.1 Governing Rules Arbitration and arbitral procedures are governed by the Arbitration Act. Parties to arbitration are generally free to agree on the procedure of arbitration, and may choose to agree on institutional arbitration under the FAI Rules, for exam - ple. See also 7.2 Procedural Steps and 7.3 Powers and Duties of Arbitrators regarding the provisions of the Arbitration Act on the procedure of arbitration.
The Arbitration Act is silent on the issue of interim relief, but parties may agree that such measures may be granted by the arbitral tribunal. The Arbitration Act provides that arbitrators may not impose the threat of a fine nor issue orders regarding other coercive means. Under the FAI Rules, an arbitral tribunal may, at the request of a party, grant any interim measures of pro - tection it deems appropriate. However, it is essential to note that, in Finland, interim measures granted by an arbitral tribunal are not enforceable, as only courts may grant binding and enforceable interim relief. 6.2 Role of Courts Finnish Courts and Interim Relief in Arbitral Proceedings As stated in 6.1 Types of Relief , only courts may grant binding and enforceable interim relief. Courts may grant interim measures before and during arbitration proceedings in accordance with the Arbitration Act. The application of a party to a judicial authority for such measures is not considered an infringement or a waiver of the arbitration agreement under the FAI Rules. Interim Relief and Foreign-Seated Arbitrations Finnish courts can grant interim relief in aid of foreign- seated arbitrations to the same extent as they can in support of national arbitral proceedings. A court may grant a broad range of interim measures, including: • the seizure of movable or real property; • prohibiting the deed or action of the opposing party under threat of a fine; • ordering the opposing party to do something under threat of a fine; • empowering the applicant to do something or to have something done; • ordering that property of the opposing party be placed under the administration and care of a trustee; and • ordering other measures necessary to secure the right of the applicant.
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