Litigation in Finland

Overview of Litigation in Finland

Litigation in Finland is conducted through general courts or via arbitration, reflecting a robust legal framework grounded in material and procedural law. Material law outlines the rights and obligations of legal or natural persons, while procedural law dictates the processes for enforcing those rights. Importantly, procedural law only specifies how a dispute must be conducted; it does not resolve the substantive outcome of the case. Procedural law exists to support the application of material law, ensuring proper legal processes are followed.

Legal Protections and Rights

The Finnish Criminal Code (39/1889) prohibits self-help, emphasizing state protection of legal and natural persons to secure their rights. According to Section 21.1 of the Constitution of Finland (731/1999): 

"Everyone has the right to have their case dealt with properly and without undue delay by a competent court or authority, as well as to have decisions regarding their rights or obligations reviewed by an independent judicial body."

Finnish Procedural Legislation

The Code of Judicial Procedure (4/1734) contains the core procedural rules for litigation in Finland. Certain procedural doctrines, such as Res Judicata (legal finality of a judgment) and the prohibition of reformatio in peius (worsening the appellant's position), are recognized even if not explicitly codified.

The Criminal Procedure Act (689/1997) governs procedural aspects of criminal cases, incorporating civil procedural principles by reference. Additionally, international regulations like the Brussels I Regulation (44/2001) and the Lugano Convention also influence procedural rules applicable to Finnish courts.

General Courts in Finland

Under the Courts Act (673/2016), the general courts consist of district courts, courts of appeal, and the Supreme Court as the highest instance. The Finnish court system also includes administrative courts, with the Supreme Administrative Court as the highest judicial body in administrative matters. Specialized courts such as the Market Court, Labour Court, and Insurance Court handle specific types of cases.

Each district court comprises a chief judge, district court judges, and, when applicable, lay judges. Military members may also participate in cases within their jurisdiction.

Arbitration in Finland | Alternative Dispute Resolution

The Finnish Arbitration Act (967/1992) provides the legal basis for arbitration in Finland. Although not entirely modelled after the UNCITRAL Model Law, the Act reflects some of its principles. The Finnish government is currently reviewing potential amendments to enhance the Act's scope. The current version is minimalistic, but arbitration under the Finland Arbitration Institute offers detailed procedural rules widely recognized in practice.

It is to be noticed that an arbitration clause under Finnish law must be in written form, however email correspondence can satisfy this requirement and the written form requirement is flexible and relatively easily fulfilled. However, only civil law disputes can be arbitrated, as per the Act, which mandates that arbitration awards are final and binding on the parties.

Right to Appeal

The Constitution of Finland ensures the right to appeal, but this right is not absolute. The Court of Appeal evaluates whether an appeal permit is justified for each case. Appeals to the Supreme Court are contingent on a granted review permit, although direct appeals from district courts are possible in cases involving precedents, provided the opposing party agrees to this appeal option.

Class Action in Finland

The Act on Class Action (444/2007) outlines the regulations for class actions in Finland. The scope is limited, typically allowing only the Consumer Ombudsman to initiate such actions. Individual claims must be distinct and cannot be aggregated. These restrictions have, so far, prevented any class actions from being filed in Finland.

For a case to qualify as a class action, it must meet specific criteria:

1. Multiple claimants must have claims against the same defendant based on similar circumstances;
2. The case must be suitable for class action handling considering the class size, claims, and evidence;
3. The class must be adequately defined.

Class actions are initially heard by the District Court of Helsinki. The Act also stipulates rules on class action funding, prohibiting funders with competitive interests or dependencies on the defendant. Funders cannot unduly influence the plaintiff's decisions in ways that harm consumer interests, and courts may require detailed funding disclosures.

Conclusion

Litigation in Finland, with its comprehensive legal framework and procedural safeguards, emphasizes fairness and efficiency. Whether engaging in traditional court litigation or business orientated arbitration, understanding these laws is crucial for parties involved in legal disputes to succeed.

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Disclaimer: This article is for informational purposes only.