1. What are the different types of (court) procedure in case of a commercial dispute?
An amicable solution is often the most favourable option. If amicable solution is not possible in commercial disputes, parties often choose for the district court, the Market Court or arbitration. The primary arbitration institute is the Arbitration Institute of the Finland Chamber of Commerce (FAI).
The district court includes a chance to court mediation. It typically takes place after the application for a summons before continuing the court proceedings if all the parties to the dispute consent to it.
2. What is the working language of the different (court) procedures?
The district court
The working language in the district court is Finnish or Swedish, which are Finland`s official languages.
The Market Court
The working language in the Market Court is Finnish or Swedish.
Arbitration
The working language in arbitration is determined by agreement of the parties.
3. When is the relevant body competent to take cognisance of the dispute?
The district court
The main rule is that the court closest to the defendant’s place of residence is competent to take cognisance of the dispute. Sometimes parties have made an agreement for a different jurisdiction.
The Market Court
The Market Court is the most relevant body when a matter is concerning:
- market law,
- competition law,
- supervisory matters,
- public procurement or
- intellectual property rights
Arbitration
A matter may be subject to arbitration, if the parties have expressly agreed in a written agreement that proceedings will be submitted to arbitration. It is also possible to agree it after the dispute has arisen.
4. Which law is applicable to the different (court) procedures?
The district court
The court applies Finnish law, including the Code of Judicial Procedure. Court mediation is governed by the Finnish Act on Court-annexed Mediation.
The Market Court
The Market Court applies Finnish law, including the Code of Judicial Procedure and the Code of Judicial Procedure in the Market Court.
Arbitration
Arbitration is generally conducted under the FAI Arbitration Rules. Arbitration in Finland is also governed by the Arbitration Act of 1992. According to these rules arbitral tribunal judges in accordance with the law chosen by the parties.
5. Does the judge have specific knowledge of the market?
The district court
The judges of the district court usually have no specific knowledge of the market in which the parties in dispute operate. That can be seen as a disadvantage in a commercial dispute resolution.
The Market Court
The judges of the Market Court operate with cases concerning market law, competition law, supervisory matter, public procurement and intellectual property rights. They have therefore specific knowledge of the market.
Arbitration
The arbitral tribunal usually consists of arbitrators with specific knowledge of the market in which the parties in dispute operate.
6. Are the procedures and the rulings confidential?
The district court
According to main principle, the hearing is in public in court proceedings or in court mediation. However, the court can decide that the hearing shall be kept confidential to the extent necessary. The judgement is given in public.
The Market Court
According to main principle, the hearing is in public. However, the court can decide that the hearing shall be kept confidential to the extent necessary. The judgement is given in public.
Arbitration
Arbitration proceedings are private and confidential. This is one of the best sides in arbitration. Often the publicity of dispute can cause the biggest harm to parties.
7. What are the costs of the different (court) procedures?
The district court
A court fee is EUR 530.
The Market Court
Court fees differentiate between EUR 530 and EUR 2120, depending on parties in dispute (natural person or legal entity).
Arbitration
The costs for arbitration proceedings vary and depend on the monetary value of the dispute, the complexity of the dispute, the time spent on the case, and the diligence and efficiency of the arbitrator.
8. Can the losing party be ordered to pay the costs of the proceedings?
The district court
According to main principle, the court order the unsuccessful party to bear both sides costs of the proceedings. These costs consist of lawyer’s fees and court fees. Sometimes, when it is reasonable, the court can order the unsuccessful party to bear only part of costs of the proceedings.
In court mediation both sides bear their own costs of the proceedings.
The Market Court
According to main principle, the court order the unsuccessful party to bear both sides costs of the proceedings. These costs consist of lawyer’s fees and court fees. Sometimes, when it is reasonable, the court can order the unsuccessful party to bear only part of costs of the proceedings.
When a matter is concerning market law, both sides bear their own costs of the proceedings.
Arbitration
Parties can make agreements with respect to the allocation of costs of proceedings.
9. What is the average lead time of the different (court) proceedings?
The district court
In a typical corporate dispute, one could expect a duration of 12 to 18 months from an application for a summons to a judgement in the district court. The dispute may stand even longer because the district court’s decision is open to an appeal in the court of appeal, and the court of appeal’s decision may be appealed in the Supreme Court.
An average lead time in court mediation is three months if parties give their permission to mediation at the beginning of court proceedings. However, a party may, at any time during the mediation, decide to stop mediation and continue court proceedings.
The Market Court
The average lead time in the Market Court is about eight months. The Market Court’s decision is open to an appeal in the Supreme Court or in the Supreme Administrative Court.
Arbitration
Finnish arbitral award is not open to an appeal. An arbitration procedure can therefore be finalized in a relatively short period of time.
Pursuant to the FAI Rules, the final award shall be made no later than nine months from the date on which arbitral tribunal received the case. In expedited arbitration the arbitral award is rendered within three months of the date the case file is transferred to the arbitral tribunal.
10. Is the judgment consigned in other EU member states and can it be enforced there? And outside the EU?
The district court
Finnish judgements are enforceable in the European Union without any declaration of enforceability being required.
Enforceability of a Finnish judgement outside the EU is governed by conventions to which the Finland is a party.
The Market Court
The Market Court judgements are enforceable in the European Union without any declaration of enforceability being required.
Enforceability of a Finnish judgment outside the EU is governed by conventions to which the Finland is a party.
Arbitration
Arbitral awards are enforceable in most countries through international conventions