FINLAND Law and Practice Contributed by: Marja Norrena, Maija Ahtiainen and Valmari Keskimäki, Lieke Attorneys Ltd
Finnish Bar Association, any contingency fee agree- ment must be in writing and adequately safeguard the client’s interests. 2.7 Time Limit for Obtaining Third-Party Funding There are no time limits by when a party to the litiga- tion should obtain third-party funding.
In addition to these specific time limits for bringing a suit in certain situations, Finnish law includes gen- eral substantive limitation periods applicable to civil claims. The general limitation period is defined in the Act on the Limitation of Debts and applies to most civil claims, such as ordinary monetary claims. The general limitation period under the Act is three years. The commencement date of the limitation period var- ies. For example, it can start from an agreed due date, or in the case of claims for damages, from the date on which the creditor could first have demanded per- formance. The limitation period can be renewed by various unof- ficial means that bring the debt to the debtor’s atten- tion. It can also be interrupted by taking legal action. In addition to the general three-year limitation period, the Act includes secondary limitation periods. For example, in claims for damages, a secondary limi- tation period of ten years begins on the date of the event that caused the damage. Even if the creditor was unaware of the damages before ten years had passed since the event occurred (meaning the general three-year limitation period had not commenced), the debt is time-barred. If the debtor is an individual, monetary debts arising from a contract always ultimately become time-barred within 20 years of their due date, or within 25 years if the creditor is also an individual. 3.3 Jurisdictional Requirements for a Defendant All entities with civil legal capacity are eligible to be parties to legal proceedings in a civil case – ie, natural persons and legal persons such as companies, states and municipalities. A person is not required to be a Finnish citizen or company to be subject to suit in Finland. Where a legal person (for example a limited liability company) is established through registration, it cannot become a party to legal proceedings until the registration pro- cess is complete. In the case of foreign legal persons, eligibility is determined based on the law of their home state.
3. Initiating a Lawsuit 3.1 Rules on Pre-Action Conduct
The Finnish civil procedure does not include a formal pre-action phase. The parties are not formally required to negotiate or communicate about the dispute before initiating legal proceedings. In practice, however, it is common to send at least a demand letter to inform the other party of the possibility of legal action and potentially reach an amicable solution without litiga- tion. Although there are no formal requirements, the court may take into account the absence of prudent pre-action measures when evaluating the allocation of legal costs. In addition, if a party is represented by an attorney- at-law (a member of the Finnish Bar Association), the attorney-at-law is bound by the Finnish Bar Associa- tion’s Code of Conduct. In the absence of specific reasons, the Code of Conduct prevents an attorney- at-law from taking legal action without informing the opposing party of their client’s demands and without giving the opposing party reasonable time to consider the claims, as well as an opportunity to reach an ami- cable settlement. 3.2 Statutes of Limitations In Finland, there are no general time limits for bring- ing a civil suit. However, certain legislation sets time limits for filing specific types of lawsuits. For example, the Finnish Limited Liability Companies Act stipulates time limits for challenging general meeting decisions and for initiating claims for damages against company directors or auditors. Similarly, the Employment Con- tracts Act provides time limits for bringing employ- ment-related lawsuits following the termination of an employment contract.
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