It is common for companies to agree that possible disputes arising in connection with an agreement shall not be resolved by way of litigation in state courts, but by way of arbitration. Arbitration is an alternative way of dispute resolution often considered as the most effective way of resolving commercial disputes, whether domestic or international.
Arbitration is based on an agreement between the parties. In Finland, an arbitration agreement must be concluded in writing. An arbitration agreement typically prevents the parties from having their dispute resolved by litigation in state courts.
An arbitration agreement is commonly concluded by inserting an arbitration clause in the main contract between the parties, but it is also possible that the parties enter into a separate arbitration agreement. In the arbitration clause, the parties may agree that the arbitration should be conducted in accordance with the rules of a certain Arbitration Institute, such as The Arbitration Institute of the Finland Chamber of Commerce (FAI), The International Chamber of Commerce (ICC), The Arbitration Institute of the Stockholm Chamber of Commerce (SCC) or The London Court of International Arbitration (LCIA). Furthermore, the language and place of arbitration as well as the number of arbitrators that shall decide the dispute are commonly agreed in the arbitration clause.
The reasons for choosing arbitration instead of litigation in state courts may vary. Common arguments used in favour of arbitration include confidentiality, expertise, speed and flexibility as well as enforceability of the arbitral award. Arbitration is confidential, and it is generally faster than litigation. An arbitral award is binding on the parties to the arbitration, meaning that it cannot be appealed on its merits. Arbitral awards are recognized and enforced in most countries in the world, which is of great importance in international agreements. The parties to an arbitration proceeding are free to tailor the arbitral proceedings to best suit their individual needs, and arbitrators with special expertise may be chosen to resolve the dispute.
Attorneys at Law MK-Law Ltd have extensive experience from representing parties in arbitration proceedings. We have experience in representing parties in ad hoc proceedings, as well as in arbitration proceedings conducted e.g. under the FAI, SCC and ICC arbitration rules. Prior to joining MK-Law, partner Niklas Lindström has worked as an attorney in the dispute resolution group of a leading Nordic law firm for more than a decade, and he has also acted as legal counsel at the Arbitration Institute of the Stockholm Chamber of Commerce in Stockholm.
[ls_content_block id=\”2107\”]
