Mediation

Mediation is an alternative to proceedings in court or in arbitration. In mediation, an independent and impartial mediator helps the parties to reach an amicable solution to the dispute.

Mediation does not require a separate dispute settlement clause and the parties can agree to refer the matter to mediation at any stage. Mediation always requires the consent of both parties to the dispute. Mediation is therefore voluntary and either party can stop mediation at any time and take the matter to court or arbitration.

Why mediate?

The advantages of mediation are flexibility, speed and cost-effectiveness. The procedure can be launched quickly and the mediation session itself usually takes only 1-2 days.

In mediation, the parties themselves can influence the course of the mediation. By accepting the terms of the settlement, the parties have a say in the outcome of the settlement. Mediation can better take into account the individual and collective interests of the parties, which distinguishes it from arbitration and litigation, where the focus is on evidence, applicable rules and on “who is right”.

Mediation offers the possibility to take into account the post-conflict situation and allows for the maintenance of valuable business and personal relationships even after the conflict. In mediation, the parties bear their own legal costs, but the costs are usually lower than in a full trial or arbitration, and it is easier to manage the liability for costs.

Before court or in private

Mediation can be conducted in court or as an out-of-court private mediation procedure.

In court mediation, the mediator is a professional judge who has been trained as a mediator. In court, mediation can be initiated while a dispute is pending before the court, in which case it is always presided over by a different judge from the one hearing the dispute in court. It is also possible to initiate mediation in court on application.

Private out-of-court mediation is provided by the Arbitration Institute of the Finland Chamber of Commerce (FAI Mediation), the Turku Chamber of Commerce and the Finnish Bar Association. The parties may also choose to use the services of a private mediator. In private mediation procedures, the parties have a say in the choice of mediator. The private mediation process is confidential, and the outcome will not be made public. In courts, proceedings are in principle always public.

Regardless of the way the procedure is organised, the mediator's role is to guide the procedure and assist in reaching an amicable solution. The mediator does not act as a "judge" of the case, but always aims at a solution formulated by the parties themselves.

Mediation allows the parties to discuss the terms of the settlement themselves. However, it is advisable to use legal advice to achieve an effective solution to the dispute and to ensure that both parties are treated equally and your own interests are be protected.

We are here for you to give you more information about mediation and its use in dispute resolution.

Niina Palaja

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