Arbitraatio

Arbitraatio is the Finnish term for arbitration, a method of resolving disputes outside the court system by submitting the matter to one or more arbitrators whose decision is binding. Arbitration is used for domestic and international disputes and is common in commercial contracts, construction, energy, and investment matters. The key feature is that the parties voluntarily consent to be bound by an arbitral award rather than by a court judgment.

The process typically begins with an arbitration agreement, which may be part of a contract or a separate written agreement. The agreement can designate how arbitrators are chosen, whether by the parties themselves or through an arbitration institution. Proceedings can be administered by an established institution using its rules, or they can be ad hoc, governed by the parties’ own procedures. Arbitration generally involves written submissions, hearings, and the presentation of evidence, after which the arbitrators issue an award detailing the decision and, if applicable, the reasons.

Enforcement of arbitral awards is a central strength of arbitration. Internationally, awards are largely enforceable under the New York Convention, which facilitates recognition and enforcement across borders. Domestically, awards are enforced by national courts and are typically final and not subject to extensive avenues of appeal, though some limited grounds for challenge may exist.

Arbitraatio offers advantages such as confidentiality, procedural flexibility, and access to expertise, while potential drawbacks include costs, the possibility of limited remedy on errors of law, and the finality of the decision. It remains a prominent option for resolving disputes where neutrality and efficiency are valued.