Dispute resolution

Our office has strong and solid experience in conflict prevention and dispute management. We advise clients already at the contract stage to avoid disputes. In disputes, we help clients find an effective solution so that they can focus on what matters - developing their business.

Do you know how to choose the most appropriate dispute resolution method for your situation - when to choose arbitration, mediation or litigation?

In business-to-business disputes, the choice of the best dispute resolution method should be carefully considered, taking into account the content of the contract under negotiation or the specific features of already arising dispute. But when should you actually choose arbitration over court and when should you prefer mediation?

Aim to resolve the dispute quickly and save costs

In business disputes, the main issue with the court process is perceived to be the slowness of the proceedings, as the case is heard in several courts ( District Court - Court of Appeal - Supreme Court) and the length of the proceedings in the courts. The backlog caused by the pandemic continues to overwhelm the courts and processing is slow.

The advantage of arbitration is the speed of the procedure and the finality of the arbitral award, allowing the parties to the dispute to focus on business development instead of the years-long process.

Arbitration conducted in only one proceeding instead of several court instances also indicates lower costs. However, in arbitration proceedings, the arbitrator's fees are also added to the costs. As in general court proceedings, arbitration is governed by the "loser pays" principle.

Mediation is seen as a quick process, with the aim of reaching a final solution that satisfies both parties. In mediation, the parties are in principle responsible for their own costs, making it easier to manage liabilities.

Aiming for a flexible and confidential process

In arbitration, the parties can influence, among other things, the applicable law and the choice of arbitrator. In addition to ensuring a flexible process, these choices can guarantee the arbitrator's specific expertise in the dispute to be resolved.

Courts respect the principle of publicity, while arbitration settles disputes confidentially. Arbitration proceedings, as well as arbitral awards, are not public, thus keeping trade secrets confidential and minimising the potential reputational damage caused by a dispute.

Mediation emphasises the interests of both parties and their desire to continue the business partnership. It is seen as an advantage that the parties themselves can influence the outcome of the settlement.

Mediation is divided into court mediation and out-of-court mediation provided by private mediators.

In court mediation, the mediator is a professional judge, who is always a different judge from the one who decides the main dispute. In mediation procedures other than court mediation, the parties have a say in the choice of mediator.

With the exception of court mediation, the mediation process is confidential and the outcome is not made public.

It is therefore worth paying particular attention to the choice of dispute resolution method.

We are here to provide further information and support to ensure that your dispute is handled as efficiently as possible and with your business needs in mind. Please feel free to contact us.

Niina Palaja

Attorney at Law, Partner
+358 40 706 1673
niina.palaja@prlaw.fi