Case Update | The Supreme Court of Finland Evaluated the Validity of an Arbitration Agreement Contained in a Pledge Agreement

Partner Anna-Maria Tamminen and Associate Ina Rautiainen have written a case update in which The Supreme Court of Finland concluded that a bankruptcy estate was not bound by an arbitration clause contained in a pledge agreement. Consequently, it found that arbitrators who had decided the dispute under such arbitration agreement had exceeded their authority under Section 41(1) of the Finnish Arbitration Act. The Supreme Court also held that as an arbitral tribunal has exclusive authority to decide on the costs of arbitration, a court does not have the authority to change the decision on costs as part of a set aside application but can merely decide whether or not to set the decision aside.

You can read the case update in KluwerArbitration ITA Arbitration Report, Volume No. XVII, Issue No. 10, published on 23 October 2019. The report is available through online subscription here.