FINLAND Trends and Developments Contributed by: Marja Norrena, Maija Ahtiainen, Valmari Keskimäki and Krista Hautakoski, Lieke Attorneys Ltd
Reform of the Arbitration Act The Finnish Arbitration Act entered into force in 1992 and has not been substantially amended since. While the Act follows in outline the original Model Law adopted by the United Nations Commission on Inter- national Trade Law (UNCITRAL), no amendments cor- responding to the 2006 reform of the Model Law have been made. In light of societal developments since the Arbitration Act came into force, as well as the increasingly inter- national nature of commercial dispute resolution, the need to reform the Act has been recognised. Conse- quently, the Ministry of Justice has appointed a work- ing group to prepare such a reform, with the aim of modernising the Act to reflect international best prac- tices even better. This could further enhance Finland’s attractiveness as an arbitration venue. The proposal to reform the Arbitration Act is expected to be introduced to Parliament in 2026.
the parties or the court itself can propose such a referral. Before deciding to refer a question to the Supreme Court, the court must hear the parties. If a party objects, the question may only be referred to the Supreme Court for special reasons (except in cases heard by the Court of Appeal in its capacity as an appellate instance, in which case party consent is always required). The amendments provide additional flexibility in court proceedings. However, we anticipate that parties may not always welcome these shortcuts to the Supreme Court, as this effectively means losing one potential opportunity to win the case in the lower courts. Alternatives to Litigation The use of alternative dispute resolution methods is an ongoing trend in Finland. The most common forms of ADR in commercial disputes are arbitration and mediation. One obvious reason for this is that it often takes a long time to reach a final judgement in the general courts, a situation which unfortunately is not set to change in the near future. Other key reasons include confidentiality, the expertise of arbitrators and mediators, and flexibility. Mediation Court-annexed mediation has been fairly commonly used for quite some time, and the courts have made efforts to increase its popularity. However, along- side court-annexed mediation, private mediation has grown in popularity. In recent years, the Finnish mar- ket has seen an increasing number of private media- tion practitioners offering various styles and methods of mediation. We expect the growing awareness of mediation as an effective, cost-efficient alternative to traditional litigation, coupled with continual develop- ment of expertise and increased availability among private mediation practitioners, to contribute to an increase in private mediation usage in the future.
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