FINLAND Law and Practice Contributed by: Marja Norrena, Maija Ahtiainen and Valmari Keskimäki, Lieke Attorneys Ltd
proceedings, they may be ordered to bear all or part of their own costs. It is also possible that the prevailing party is ordered to compensate the losing party for their reasonable and necessary costs of litigation. This may occur if the prevailing party initiated legal proceedings with- out reason or otherwise caused an unnecessary trial through carelessness or intent. Reimbursable expenses include court fees, counsel fees and other expenses, such as witness and expert fees. Compensation must also be paid for work caused by the proceedings and for losses directly linked to them. A court’s order on costs can be appealed either together with an appeal on the merits, or by appeal- ing solely against the order on costs. 11.2 Factors Considered When Awarding Costs For costs of litigation to be compensable, they must be reasonable, and they must relate to measures that have been necessary to protect the rights of the party concerned. When assessing reasonableness, the court may con- sider the relationship between the total costs and the value and significance of the case to the party, for example. Counsel fees should correspond to the com- plexity of the case in terms of both the amount and the time allocated to each task. The court must reduce the legal costs awarded against a party on its own motion if, considering the circumstances, the parties’ positions, and the signifi- cance of the case, requiring payment of the opposing side’s costs would be unreasonable. The necessity of the costs is assessed based on the circumstances in which they were incurred. Thus, even if a particular measure that led to costs later proves unnecessary, reimbursement is not precluded if the measure was appropriate at the time. 11.3 Interest Awarded on Costs If a party requests it, interest shall accrue on com- pensation for costs of litigation starting one month
after the date of the costs order. The interest rate is 7% higher than the European Central Bank’s refer- ence rate. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country In Finland, alternative dispute resolution is widely regarded as an effective way of resolving disputes, often offering significant savings in terms of time and costs. The most common forms of alternative dispute reso- lution include court-annexed mediation, out-of-court mediation and arbitration. Dispute boards are also sometimes used, particularly for complex construc- tion projects. 12.2 ADR Within the Legal System The court is obliged to make efforts to help the par- ties reach a settlement. If the court deems it expedi- ent to promote a settlement, taking into account the parties’ wishes, the nature of the matter, and other circumstances, the court may also make a proposal to the parties for an amicable settlement. However, this occurs quite rarely in practice. Often, courts also inform the parties that court- annexed mediation is an alternative option to litigation and ask whether the parties are willing to participate in such mediation. Participation in court-annexed medi- ation is voluntary and does not constitute a formal part of the proceedings, despite it being administered by the court. A party will not face any legal consequences for declining to participate in such mediation. 12.3 ADR Institutions The institutions in Finland that provide and promote alternative dispute resolution are generally well organ- ised and credible. The most notable institution is the Arbitration Insti- tute of the Finland Chamber of Commerce (FAI), which offers arbitration and mediation services.
321 CHAMBERS.COM
Powered by FlippingBook