FINLAND Law and Practice Contributed by: Julia Pekkala, Mikko Leppä, Risto Sandvik and Nuutti Kortelainen, HPP Attorneys Ltd
In Finland, a “costs follow the event” approach is followed: unless the parties have agreed otherwise, arbitration costs are typically paid by the unsuccess - ful party. Nevertheless, the arbitral tribunal retains the discretion to distribute any arbitration costs between the parties based on the specific circumstances of each case. An allocation of costs that is proportional to the claimant’s success is common. Unless otherwise agreed, the parties bear joint and several liability for the arbitral tribunal’s fees and costs, as well as the FAI’s administrative fees and expenses in arbitrations governed by the FAI Rules. Typically, however, the unsuccessful party will be required to reimburse the successful party for any portion of arbi - trators’ fees or costs that the successful party has paid. An arbitral award cannot be appealed. An award may only be deemed null and void or set aside, and the conditions for doing so closely mirror those on which the recognition and enforcement of an arbitral award can be refused under the New York Convention. An award is null and void if: • the arbitral tribunal has decided that an issue is non-arbitrable under Finnish law; • recognition of the award would be against Finnish public policy; • the arbitral award is so obscure or incomplete that it does not indicate how the dispute has been decided; or • the arbitral award is not in writing or signed by the arbitrators. There is no time limit to challenge an award as null and void. An arbitral award may be set aside if: • the arbitral tribunal exceeded its authority; • an arbitrator had not been properly appointed; 11. Review of an Award 11.1 Grounds for Appeal
• an arbitrator could have been disqualified but a challenge duly made by a party had not been accepted before the arbitral award was made; • a party was not aware of the grounds for disqualifi - cation and was not able to challenge the arbitrator before the arbitral award was rendered; or • the arbitral tribunal did not give a party sufficient opportunity to present its case. An action for setting aside an award must be brought before the District Court in whose circuit the award was given within three months of the date on which the party received a copy of the award. For minor errors, the primary remedy is to provide the arbitrators with an opportunity to correct or supple - ment the arbitral award. Note that this area of law is subject to pending legisla - tive reform; see 2.2 Changes to National Law . 11.2 Excluding/Expanding the Scope of Appeal It is generally accepted in Finland that a party cannot waive its right to challenge an award before the award has been rendered. However, a party may forfeit its right to rely on specific grounds for annulling an award through its conduct. For instance, if a party fails to raise objections regarding an arbitrator’s eligibility or impartiality when it was aware of such issues, that party may be considered to have relinquished its right to challenge the award on those particular grounds. In the absence of legislative guidelines and case law, it is unclear whether parties can agree on the right of appeal or expand the scope of challenge under Finn - ish law. In legal literature, it has been held that parties cannot by agreement impose new tasks on the court or deviate from the procedural rules binding the court. A court cannot, on the basis of an arbitration clause, be compelled to act as an appellate body, since no such judicial function is provided for by statute such as the Arbitration Act. On the other hand, the possibility of extending the grounds for nullity and setting aside remains fairly open.
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