International Commercial Arbitration at Finland
Here’s a concise overview of International Commercial Arbitration in Finland:
1. Legal Framework
Finland’s arbitration law is governed by the Act on Arbitration (967/1992), which is based on the UNCITRAL Model Law on International Commercial Arbitration.
This Act applies to both domestic and international arbitration unless otherwise agreed by the parties.
Finland is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which ensures enforcement of foreign arbitral awards.
2. Scope and Application
The Finnish Act applies to arbitration agreements and proceedings where parties have agreed to resolve disputes outside of courts.
Arbitration is widely used for commercial disputes, including contracts with foreign parties.
3. Arbitration Agreement
Must be in writing.
Can be an arbitration clause within a contract or a separate arbitration agreement.
Parties can agree on the procedure and rules for arbitration or rely on default provisions in Finnish law.
4. Arbitration Procedure
Parties are free to choose arbitrators; if they fail to agree, courts can appoint arbitrators.
Finnish courts generally adopt a pro-arbitration stance, supporting the arbitration process.
Hearings and procedures are typically flexible and confidential.
5. Role of Finnish Courts
Finnish courts provide minimal intervention:
Assistance in appointing arbitrators if necessary.
Reviewing the validity of arbitration agreements.
Enforcement of arbitration agreements by dismissing court cases on the same disputes.
Limited grounds to annul or refuse enforcement of arbitral awards (e.g., violation of due process or public policy).
6. Enforcement of Awards
Arbitral awards, whether domestic or foreign, are enforceable in Finland.
Enforcement of foreign awards is under the New York Convention framework.
Finnish courts usually respect arbitration agreements and arbitral awards, with enforcement being straightforward.
7. Institutional Arbitration
Finland hosts arbitration institutions such as:
Helsinki Chamber of Commerce Arbitration Institute (HCC)
Parties can also use international arbitration bodies (e.g., ICC, LCIA) for their disputes.
Summary
Finland provides a modern, arbitration-friendly legal environment grounded in the UNCITRAL Model Law and supported by the New York Convention. Its Arbitration Act ensures enforceability and minimal court interference, making Finland a reliable venue or governing law for international commercial arbitration.
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